Criminals are increasingly exploiting AI technology to take over people’s mobile, banking and online shopping accounts, the UK’s main anti-fraud body has warned.
Last year, a record number of scams were reported to the AI-powered national fraud database, which enables large-scale deception at “industrialized” levels, according to fraud prevention organization Cifas.
Its report showed that its members reported 444,000 cases of fraud last year, a 6% increase from 2024. Criminals’ tactics are shifting towards account takeover, where they take control using stolen data and make unauthorized transactions.
According to the Fraudscape report, the majority of account takeover scams reported last year were for mobile phones, online purchases and personal credit cards.
Cifas chief executive Mike Haley said 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 can now be produced on a large scale.
“Our assessment suggests that online fraud will become increasingly sophisticated, powered by AI-powered phishing, synthetic media, and accessible fraud-as-a-service tools that are likely to ensure that identity fraud and account takeover remain significant threats,” Haley said.
He added: “Synthetic identities are becoming industrialized, with criminals building compelling long-term profiles that blur the line between real users and AI-generated impostors. At the same time, more and more people are selling or sharing their ID documents under financial duress, creating greater opportunities for misuse.”
There has been a sharp increase in SIM swapping fraud attempts, where criminals attempt to trick a mobile provider into porting a number to a SIM card in their possession, driven by the large amount of compromised personal data that is available.
The majority of scams reported to Cifas were identity fraud, in which 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 criminals to use their accounts to transfer funds, were reported to Cifas. Tactics to get people to do this ranged from job scams to overpayments for selling items on online marketplaces.
“We anticipate increased use of AI to personalize attacks and create credible long-term profiles, reinforcing the need for cross-sector collaboration to detect patterns earlier,” said Cifas chief intelligence officer Stephen Dalton.
Fraud accounts for more than 40% of all crime in the UK. A Barclays survey this week showed a lack of confidence among consumers in spotting AI-based scams, with only 36% saying they could do so.
