AI-driven fraud surge puts UK mobile banking and online accounts at risk

Fraud cases in the United Kingdom climbed to a record level last year as criminals increasingly used artificial intelligence to scale up scams and take over personal accounts, according to new data from fraud prevention organisation Cifas.

Criminals are now operating on an industrial scale, using AI tools and large datasets to impersonate victims and access digital accounts.

According to Cifas, criminals are exploiting artificial intelligence to automate deception, create convincing fake identities and carry out attacks at what the organisation described as “industrialised” levels.

Record fraud cases

According to the Fraudscape report, Cifas members recorded 444,000 fraud cases in the national fraud database last year.

This represents a 6% increase compared with 2024 and marks the highest number of incidents recorded by the system.

Fraud prevention experts say the rise reflects a shift in tactics as attackers move away from traditional scams toward methods that involve hijacking existing accounts.

The use of AI tools has made it easier to create convincing impersonations and bypass verification systems used by banks, telecom companies, and digital platforms.

Account takeover scams

One of the most significant trends highlighted in the report is the rise of account takeover fraud.

These scams occur when criminals obtain stolen personal information and use it to gain access to a victim’s existing digital accounts.

Once inside, they can change login credentials, make purchases, or carry out unauthorised financial transactions.

Most of the account takeover incidents recorded last year involved mobile phone accounts, online retail platforms, and personal credit cards.

These accounts are attractive targets because they often provide access to payment systems or personal information that can be used for further fraud.

Fraud networks grow

The report also highlights the increasing role of organised fraud networks operating across borders.

Criminal groups are selling tools and packages that allow others to carry out scams without specialised technical knowledge, often described as fraud as a service.

The kits typically include stolen personal data, software designed to bypass verification checks, and guidance on how to conduct scams.

Criminals are also using synthetic identities created with AI technology, building digital profiles that resemble genuine users and make detection more difficult.

SIM swap threat

Another tactic identified in the Fraudscape report is SIM swap fraud.

In these attacks, criminals attempt to trick mobile phone providers into transferring a victim’s phone number to a SIM card controlled by the attacker.

Once the number is transferred, the fraudster can intercept calls and messages, including authentication codes used to access banking and online accounts.

Fraud analysts say attempts at SIM swap scams have risen as more compromised personal data becomes available online.

Identity fraud remains the most common type of fraud recorded in the national database.

In these cases, criminals steal personal details to impersonate victims and open new accounts or make purchases using someone else’s identity.