Criminals are increasingly exploiting AI technology to take over people’s mobile, banking and online shopping accounts, the UK’s leading anti-fraud body has warned.
Last year, a record number of scams were reported to the national fraud database, fuelled by AI, which allows for large-scale deception on “industrialised” levels, according to Cifas, the fraud prevention organisation.
Its report showed 444,000 cases of fraud were reported by its members last year – a 6% increase on 2024. The tactics of criminals are shifting towards account takeovers, where they take control using stolen data and make unauthorised transactions.
Most of the account takeover scams reported last year were for mobiles, online shopping, and personal credit cards, according to the Fraudscape report.
The Cifas chief executive, Mike Haley, said the data showed fraud was becoming increasingly advanced and organised, and operated seamlessly across borders. Criminals often sell kits – “fraud as a service” – that enable others to commit the crime, while fake profiles are now able to be produced on a large scale.
“Our assessment suggests that online fraud will become ever more sophisticated, supercharged by AI-powered impersonation, synthetic media and accessible fraud-as-a-service tools that are likely to ensure that identity fraud and account takeover remain major threats,” Haley said.
He added: “Synthetic identities are becoming industrialised, with criminals building convincing long-term profiles that blur the lines between real users and AI-generated impostors. At the same time, more individuals are selling or sharing their identity documents under financial strain, creating increased opportunities for misuse.”
There has been a sharp rise in attempted sim-swap fraud, where criminals try to trick a mobile phone provider into transferring a number to a sim in their possession, driven by the large amount of compromised personal data that is available.
Most of the scams reported to Cifas were identity fraud, where data is stolen to impersonate a victim to open new accounts and make purchases.
More than 22,000 cases of money muling, where people allow their accounts to be used to transfer funds by criminals, were reported to Cifas. The tactics to get people to do this ranged from job scams to being overpaid when selling items on online marketplaces.
“We anticipate more use of AI to personalise attacks and build credible, long-term profiles – reinforcing the need for cross-sector collaboration to spot patterns earlier,” the Cifas director of intelligence, Stephen Dalton, said.
Fraud accounts for more than 40% of all crime in the UK. A survey this week from Barclays showed a lack of confidence among consumers at spotting AI-enabled scams, with just 36% saying they could do so.
