AI tools enable record UK fraud surge, identity theft
Cifas recorded a record 217,000 fraud cases in the UK in the first half of 2025, with AI tools used to create fake identities, forge documents and bypass verification systems driving much of the surge. Identity fraud exceeded 118,000 cases, with criminals using AI-generated synthetic identities and deepfakes to deceive security checks, while some people are reportedly selling their own identities to fraudsters.
What happened
Between January and June 2025, Cifas recorded 217,000 'fraud risk cases' in its National Fraud Database, an all-time high. AI tools designed to create fake identities, forge documents and bypass verification systems were a key driver of the surge.
More than 118,000 cases where identity fraud was suspected were recorded in the same period. Criminals used advanced AI to create synthetic identities and fabricated profiles that bypass security checks with 'alarming accuracy'.
Reported impact
Deepfakes comprised 24% of fraudulent attempts to pass motion-based biometrics checks according to an Entrust report from 2024. The firm recorded a deepfake attack on average once every five minute last year.
Cifas warned of a 'worrying trend' of people selling their own identities for financial opportunities, potentially leaving themselves liable for loans or credit taken out in their name by criminals. Identity fraud risks spread across sectors including false applications in motor insurance, mobile account takeovers, and gambling-related identity fraud involving deceased persons.
Index analysis
The 217,000 fraud cases represented significant increases across multiple fraud types. Account takeover attacks grew by 1% annually, but the telecoms sector surge reached 40%; over 16,000 'mobile dealer' fraud cases were recorded, up 647%, though intelligence indicates this remains highly underreported.
Insider fraud increased by 32% year-on-year, with employees engaging in dishonest activity, working multiple roles without employer knowledge, using fraudulent reference houses, and concealing background information to secure positions.
Governance controls
Cifas, a non-profit fraud prevention service whose members include banking, retail, insurance and telecoms bodies, records fraud risk cases in its National Fraud Database and releases regular Fraudscape reports tracking fraud trends.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.