Fraudscape 2025: reported fraud hit record levels

AI-driven scams and identity fraud contributed to more than 421,000 cases filed to the National Fraud Database in 2024

Cifas, the UK’s leading fraud prevention service, officially launched its Fraudscape 2025 report on 3 April, revealing that fraud levels reached record highs in 2024. A staggering 421,000 cases were filed to the National Fraud Database (NFD) last year – a 13% year-on-year rise and the highest number ever recorded.

This sharp increase was one of the largest annual spikes Cifas has observed, underscoring the growing complexity and scale of fraud in the UK. On average, a new case was filed every two minutes by Cifas members, collectively helping to prevent more than £2.1 billion in fraud losses.

Identity fraud remained the most dominant threat

Identity fraud continued to be the most prevalent type of fraud, with nearly 250,000 cases recorded – a 5% increase compared to 2023. These accounted for 59% of all NFD filings, with criminals exploiting well-known impersonation tactics to deceive victims.

Cifas noted that the surge in identity fraud has led to a sharp rise in facility (account) takeovers, as fraudsters invest more in building fake identities and convincing profiles. The use of AI and generative technologies has made these tactics more efficient and harder to detect, enabling scams to be carried out at greater speed and scale.

Notably, identity fraud involving personal store cards rose by 35%, personal bank accounts by 12%, personal credit cards by 8%, and motor insurance also by 8%. Victims aged 61 and over were the most targeted demographic, making up a quarter of all cases.

Account takeovers saw dramatic rise

Facility takeover fraud soared by 76% in 2024, with more than 74,000 cases filed. Mobile phone accounts were especially affected, making up 48% of cases. The telecoms sector saw a 105% increase in account takeovers, while unauthorised SIM swap fraud grew by a staggering 1,055%, with nearly 3,000 cases reported.

Online retail also saw a significant number of account takeovers, as criminals altered account details or redirected orders. Again, the over-60s age group was disproportionately affected, accounting for 29% of all filings.

False applications and insider threats on the rise

False applications rose by 10%, totalling more than 21,000 cases, with false documentation cited in 30% of filings – particularly across the banking and insurance sectors. With increasingly sophisticated fake documents powered by AI, many were able to bypass standard verification processes.

Misuse of facility cases remained high at over 74,000, a marginal increase of 1% on 2023. Meanwhile, suspected money mule activity decreased by 8% but still accounted for more than 34,000 cases – with 61% involving individuals under the age of 30.

Insider threat remained a critical risk, with over 250 cases filed to the Insider Threat Database. Cifas highlighted the difficulty in detecting internal threats, especially where employees are familiar with systems and adept at masking their actions.

Urgent need for continued collaboration

Mike Haley, CEO of Cifas, commented, “Our data highlights the relentless rise in fraud and the ever-evolving tactics used by criminals to exploit victims. Identity fraud, account takeovers, and false applications continue to climb, exposing vulnerabilities across multiple sectors.”

“These figures serve as a stark warning that the fight against fraud is far from over. Industry collaboration, cross-sector data and intelligence sharing, and greater consumer education are more critical than ever before.”

The full Fraudscape 2025 report is available to download here

Image provided by Pixelshot in Canva

Francesca Kaye