UK identity fraud hits record high as AI helps boost scams

Identity fraud in the UK has reached record levels, with artificial intelligence now playing a central role in helping criminals carry out scams at scale, according to new data from the Credit Industry Fraud Avoidance System (Cifas).

The fraud prevention organisation revealed that in 2024, over 421,000 cases were logged in the National Fraud Database – a 13% rise on the previous year. Nearly 250,000 of these involved identity fraud, making it the most common type of fraud recorded.

Identity fraud typically involves scammers using personal information – such as names, addresses or phone numbers – to access financial services, open accounts or obtain official documents in the victim’s name.

Cifas warned that the growth in fraud is being driven in part by AI-powered tools that allow criminals to create increasingly sophisticated fake documents and pass verification checks more easily.

Account takeover fraud has also spiked, with more than 74,000 cases in 2024 – a 76% increase. In these scams, criminals use stolen or leaked data to hijack existing accounts. Mobile phone accounts were the most common target, making up half of all takeover cases, with a 105% rise.

The report also highlighted a sharp rise in SIM-swap fraud, where criminals hijack a person’s mobile number and link it to a new SIM card. Over 3,000 cases were recorded in 2024 – a 1,055% increase on the previous year.

Fraudsters have also been caught applying for bank accounts, store cards, insurance policies and credit cards using fake or stolen identities, with AI making it easier to forge supporting documents.

If you’re concerned your identity has been stolen, experts recommend checking your credit report for unfamiliar accounts or changes to your file.

Cifas offers a Protective Registration service costing £25 for two years, which places a red flag on your details in their secure database. This alerts member organisations to take extra steps to confirm your identity, helping prevent further fraud.

Victims are advised to contact their bank, credit card provider, and report the incident to police on 101, as well as Action Fraud, the national fraud reporting service.