Fraud cases in the UK reached a record 444,000 last year as criminals increasingly used artificial intelligence to launch highly convincing scams, according to the country’s leading fraud prevention body.
Cifas, the national fraud prevention organisation, warned that AI technology is enabling criminals to exploit people’s mobile, banking and online shopping accounts on an unprecedented scale. Its latest Fraudscape report revealed a 6% rise in fraud cases compared with 2024, highlighting the growing sophistication of cybercrime.
The report showed that criminals are increasingly focusing on account takeover fraud. In these attacks, fraudsters use stolen personal data to gain control of accounts and carry out unauthorised transactions. The majority of reported account takeover scams involved mobile accounts, online retail platforms and personal credit cards.
Mike Haley, chief executive of Cifas, said the findings demonstrated how fraud is becoming more organised and technologically advanced, often operating across international borders. Criminal networks are also selling ready-made tools and services, allowing others to commit fraud more easily through what is known as fraud as a service.
Haley warned that online fraud is likely to become even more sophisticated as artificial intelligence enables impersonation techniques, synthetic media and large-scale identity manipulation.
He explained that synthetic identities are increasingly being created by criminals who build convincing online profiles over time, making it harder to distinguish between genuine users and AI-generated impostors. Financial pressure is also leading some individuals to sell or share identity documents, creating further opportunities for fraudsters.
The report also highlighted a sharp rise in attempted SIM swap scams. In these attacks, criminals attempt to persuade mobile network providers to transfer a victim’s phone number to a SIM card controlled by the fraudster, giving them access to personal accounts and verification messages.
Identity fraud remained the most common scam reported to Cifas. In such cases, criminals steal personal data to impersonate victims, open new financial accounts and make fraudulent purchases.
More than 22,000 cases of money muling were also recorded. This involves individuals allowing their bank accounts to be used to transfer illegal funds. Fraudsters often recruit money mules through fake job offers or by overpaying sellers on online marketplaces and asking them to transfer the excess money elsewhere.
Stephen Dalton, director of intelligence at Cifas, said artificial intelligence is likely to make fraud attacks more personalised and convincing in the future.
He said stronger collaboration across industries will be essential to detect suspicious patterns and prevent large-scale fraud.
Fraud now accounts for more than 40% of all crime in the UK. A recent survey by Barclays revealed that many consumers lack confidence in identifying AI-powered scams, with only 36% saying they believe they could recognise such threats.