Card fraud rates typically spike in November and December, according to warnings from data company Experian and fraud prevention service Cifas. The festive season creates opportunities for criminals to exploit increased spending and stretched resources.
Fraudulent savings account openings have also risen, driven largely by AI-generated identities. Criminals use these accounts to house stolen or laundered money, with AI enabling rapid generation of synthetic identities using a mix of real and fake information.
This technology makes it easier to launch large-scale attacks and produce convincing fake documents like passports, making fraudulent applications harder to detect. AI scams, identity fraud, account takeovers, investment scams, social media scams, and employee scams are among the most prominent frauds.
Cifas members reported over 74,000 cases of account takeover fraud in 2024, a 76% increase from 2023. Figures for the first six months of 2025 have already exceeded 38,000 cases, highlighting the critical need for people to keep personal information secure.
Paul Weathersby, chief product officer at Experian UK and Ireland, said businesses are deploying increasingly sophisticated technology to identify and prevent fraud. He emphasised a multi-layered approach incorporating biometric and behavioural technology to ensure defences are fit-for-purpose.
Mike Haley, chief executive at Cifas, warned that fraud does not take a holiday and the festive season often fuels it. He noted that increased spending, stretched resources, and seasonal staffing create a perfect storm for criminals to exploit vulnerabilities at scale.
