Key Fraud Trends: How to Stay Safe in the Changing Fraudscape | Harnham Recruitment post

Sharing and collecting data is part of our everyday lives. Whether our information is shared over social media, e-commerce sites, banks, or elsewhere, this can open up risks.

According to Cifas’ 2026 fraud report, 2025 saw over 242,000 identity fraud cases filed in the UK, representing 54% of all fraud cases, a rising incidence of misuse of bank accounts including for money muling, and “surging” bank account takeovers. Overall fraud numbers have climbed to their highest numbers ever.

The Department for Education, Jaguar Land Rover, ASOS, and Companies House Web Filing are some of the high-profile data breaches over the last two years. Technological advances, more accessible and available data, and an increasing sophistication in fraud schemes is only making data breaches and fraud attacks more commonplace, driven or assisted in many cases by generative AI.

But how is the fraud landscape changing, and can technology actually help detect and reduce fraud?

Identity fraud down, but still dominant

Although identity fraud saw a marginal decrease over 2025, it still remains by far the largest single form of fraud, at 54% of all cases.

Nevertheless, some sectors reported large increase in fraud cases, including banking (+10%) and insurance (+26%). Within banking, personal instant and easy-access accounts saw a “dramatic” rise of 455%, with Cifas suggesting the prevalence and availability of AI tools is providing fraudsters with more sophisticated ways of accessing accounts with synthetic identities.

Cifas remarks the use of synthetic identities is “becoming industrialised, with criminals building convincing long-term profiles that blur the lines between real users and AI-generated imposters.”

Misuse of bank accounts on the rise

In 2025, there were over 106,000 cases of misuse of facility – where a genuine account is used for illegal purposes – representing a 43% increase on 2024. Bank accounts are by far the largest sector for filings, at 77% of the total.

Notably, a growing number of these filings aren’t related to third-party fraud, but to an increasing normalisation of “first-party fraud” among UK adults, where people knowingly submit false or misleading information for financial gain. Fraudulent direct debit guarantee claims and falsely reporting a loss (+189%) saw particularly large gains in 2025.

New reporting categories have also helped Cifas shine a brighter light on money muling, where 85% of cases can now be revealed to involve personal bank accounts. Money muling, wherein individuals are tricked or paid to transfer illicit funds between two accounts, carries a heavy prison sentence in the UK, and remains a persistent threat. Concerningly, 35% of Gen-Zs surveyed by Cifas say they would transfer money to a stranger for a fee. As individuals are often recruited on social media through “get rich quick” schemes, the risk posed to this age group in particular is high.

Bank account takeovers continue to ‘surge’

Cifas also reported a significant increase in account takeovers, particularly affecting people aged 61 and above.

The majority of takeovers are reported in the telecommunications sector, with a notable 38% rise in SIM swap attacks, in which a fraudster tricks a network provider into switching a phone number to a SIM card they control, which then allows them to access sensitive accounts using multi-factor authentication. Cifas links this to the growing availability of stolen personal data.

Victims aged 61 and above are particular susceptible, accounting for 31% of cases, up 10% on the previous year.

This kind of fraud is increasingly driven by AI, which criminals use to “enhance malicious communications and automate large-scale credential attacks”. They can use AI to generate hyper-personalised scams, and even deepfake audio to trick individuals and call centres with spoofed voices.

The future of fraud

Cifas predicts fraud to become more sophisticated as AI becomes more prominent. Fraudsters can use widely available tools to impersonate individuals and generate targeted multi-channel campaigns enhanced by stolen data. Fraud-as-a-service tools are also becoming more prominent.

Even as firms strengthen their defences against fraud, Cifas notes attackers are “increasingly focusing on stealth” by “disabling customer alerts, flooding inboxes, spoofing devices, and slowly altering profile details to blend malicious behaviour with normal user activity.”

Fraud is at its highest level ever. As we give up more and more of our personal data, we need to be extra vigilant for the signs of attempted fraud. That’s a task that’s only becoming trickier as the tools available to fraudsters grow more sophisticated.

Frequently asked questions 

Is identity fraud still a major concern in the UK? 

Yes. Although the article reports a marginal decrease in identity fraud during 2025, it remains the largest single category in the Cifas figures discussed here. A decline in one category does not mean the wider fraud threat is falling. 

What is first-party fraud? 

First-party fraud is when someone knowingly provides false or misleading information for financial gain. Examples discussed in the article include fraudulent direct debit guarantee claims and falsely reporting a loss. 

What is money muling? 

Money muling involves transferring illicit funds between accounts, with individuals sometimes tricked or paid to take part. The article highlights recruitment through social media and “get rich quick” schemes as a particular concern. 

How does an account takeover differ from misuse of an account? 

An account takeover involves a fraudster gaining control of someone else’s account. Misuse of an account involves a genuine account being used for illegal purposes, which can include money muling. The distinction is between taking control of an account and how an account is used. 

Updated 2026.