Criminals are exploiting artificial intelligence to forge documents, create synthetic identities and bypass verification systems at an unprecedented scale, according to a new report by the UK’s leading fraud prevention service.

Cifas’ Fraudscape report, published today, reveals more than 217,000 fraud risk cases were recorded on its National Fraud Database in the first six months of 2025 – the highest number ever filed during a six-month period.

Of these, over 118,000 cases related to identity fraud, now the most prevalent threat in the UK’s fraud landscape.

The report warns that AI is enabling a new wave of sophisticated and scalable fraud, with synthetic identities and fabricated profiles now capable of passing through many security systems. These developments have expanded the reach of fraud into sectors previously seen as low risk.

AI-ASSISTED ATTACKS

Alongside the rise in AI-assisted attacks, Cifas has also spotted a disturbing trend of individuals willingly selling their own personal information.

Lured by the promise of quick financial rewards, many are handing over legitimate credentials to criminals, who then use them to open bank accounts or apply for loans in the victim’s name, often leaving the individual liable for any resulting debts.

Mike Haley, CEO of Cifas, said: “Fraud is a national emergency – and AI has supercharged the threat, making it more sophisticated and harder to detect. No sector, business, or individual is immune.

“Tackling this fast-changing danger requires urgent, coordinated action through cross-sector collaboration and the sharing of data and intelligence. Only by working together can we stay ahead of the criminals and keep organisations and people safe from harm.”

The warning comes as businesses across sectors face mounting losses from digital impersonation, account takeovers, and fraudulent applications.

CRIMINAL MANIPULATION

Fraser Mitchell, chief product officer at SmartSearch, said: “The UK’s Online Safety Act, mandating robust age verification, is a crucial step for online protection, yet it critically exposes the growing sophistication of fraudulent identities.

“As Cifas has highlighted, we’re now seeing legitimate credentials being sold or manipulated by criminals, while AI-enabled synthetic identities and convincing fake documents are bypassing traditional verification methods with alarming accuracy.

“This is no longer just about teenagers accessing restricted sites – it’s about people unknowingly enabling serious financial crime, from identity theft and account takeovers to large-scale fraud, money laundering, and even terrorist financing.”

“Basic checks are no longer enough.”

And he added: “What we constantly observe is a significant appetite for creating and using fake documents to bypass controls. From fake passports to driver’s licences with seemingly accurate details, including coded date of birth data in the Driver Number, these documents often pass visual inspection.

“But unless you’re using a specialist provider with the technology and expertise to detect these nuances, they’re incredibly difficult to spot.

“Basic checks are no longer enough. In today’s landscape, where criminals are agile and constantly evolving their methods, having such a robust system isn’t just about meeting compliance; it’s fundamental to fighting financial crime, protecting reputations, and building lasting trust with every interaction .

“We echo Cifas’ call for collaboration and intelligence sharing but urge that this must be underpinned by technology capable of staying ahead of fraudsters. Without it, the risks to both people and businesses will only continue to escalate.”