AI-generated identities fuel account fraud surge in 2024-2025
Criminals are using AI to generate synthetic identities and forge documents to commit account takeover and identity fraud at scale. Account takeover fraud rose 76% in the UK in 2024, while South Africa reported an 86% increase in digital banking fraud incidents driven by generative AI-based schemes.
What happened
Criminals are using AI technology to rapidly generate synthetic identities combining real and fake information, enabling large-scale fraud attacks on businesses and creation of convincing fake documents such as passports to bypass fraud detection systems.
Account takeover fraud reported by Cifas members reached more than 74,000 cases in 2024, a 76% increase from 2023, with figures for the first six months of 2025 already exceeding 38,000 cases.
In South Africa, digital banking fraud saw an 86% increase in incidents and a 74% rise in associated losses totalling R1.89 billion in 2024, with generative AI being identified as a key driver of increasingly sophisticated criminal schemes.
Reported impact
AI scams, identity fraud, account takeovers, investment scams, social media scams and employee scams have become increasingly prominent fraud threats.
Digital banking fraud now accounts for almost 70% of recorded financial losses in the South African banking industry.
Index analysis
Fraud typically spikes during November and December as shoppers prepare for Christmas, with increased spending and seasonal staffing constraints creating opportunities for criminals.
Governance controls
Businesses are deploying increasingly sophisticated technology to identify and prevent fraud, incorporating multi-layered approaches with biometric and behavioural technology.
South African banks have invested heavily in systems, partnerships, and awareness campaigns in response to the escalation in digital banking fraud.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.