Fraud reports in the UK reached a record 444,000 last year, driven by criminals using artificial intelligence to take over mobile, banking and online shopping accounts, according to Cifas, the UK's leading anti-fraud body. The figure represents a 6% increase on 2024, with AI enabling large-scale deception on an 'industrialised' level.
The Cifas Fraudscape report highlights a shift towards account takeovers, where criminals use stolen data to control accounts and make unauthorised transactions. Most reported scams involved mobiles, online shopping, and personal credit cards. Identity fraud, where data is used to impersonate victims to open new accounts, remains the most common type.
Cifas chief executive Mike Haley warned that online fraud will become 'ever more sophisticated, supercharged by AI-powered impersonation, synthetic media and accessible fraud-as-a-service tools'. He noted that criminals are selling kits to enable others to commit fraud, and that synthetic identities are becoming 'industrialised', blurring the lines between real users and AI-generated impostors.
There has also been a sharp rise in attempted sim-swap fraud, driven by compromised personal data. More than 22,000 cases of money muling were reported, where individuals allow their accounts to be used for criminal transfers, often through job scams or overpayment schemes.
Fraud accounts for over 40% of all crime in the UK. A Barclays survey found that only 36% of consumers feel confident in spotting AI-enabled scams, highlighting the growing threat.
