In our previous blog, we discussed how recognised standards help build trust in a business. But while certifications and regulations are key, they’re only one part of the broader defence against fraud. In 2025, as our lives become even more digital, fraud has become increasingly complex, AI-driven and difficult to detect.
So, what does fraud look like in 2025? And how can you stay one step ahead?
Understanding the UK Fraud Landscape
To understand today’s fraud landscape, it’s important to revisit the close connection between cyber security and fraud. A breach doesn’t always result in fraud, and fraud can occur without a breach – but the two often go hand in hand. In many cases, a cyber security incident triggers the fraud journey, providing the stolen data cybercriminals need to impersonate, manipulate or steal.
In the UK, fraud continues to grow in both scale and sophistication. According to Cifas, over 421,000 cases were reported to the National Fraud Database in 2024, a 13% increase year-on-year and the highest on record. Identity fraud alone made up nearly 250,000 of these cases.
UK Finance reports that in 2024, there were 3.31 million confirmed fraud cases, totalling losses of approximately £1.17 billion. And these numbers are still climbing.
As a result, these figures highlight two key points:
- Fraud is widely prevalent - millions of incidents each year and growing.
- The tactics are evolving fast, particularly via AI driven techniques and digital identity.
Key Fraud Trends in 2025
We are focusing on two major fraud trends shaping the current landscape.
- AI and Synthetic Identities
Cybercriminals can now use AI at multiple stages of their operations. One of the most significant uses is in the research phase. AI allows these individuals to gather and analyse data about potential victims more efficiently than ever. They can stitch together details from your social media profiles, previous breaches, and other public data to create a complete digital picture. This enables far more personalised and convincing fraud attempts.
Example: Synthetic Identity Theft
Cybercriminals create false identities using a blend of real and fake information or steal genuine credentials to open new accounts or take over existing ones. Once an identity is compromised, it can be used for months before detection. This trend highlights how cyber security incidents and fraud are connected. The more data that is leaked or exposed, the easier it becomes to assemble a believable synthetic profile.
Synthetic identities are particularly difficult to detect because they often appear legitimate on the surface. Financial institutions may struggle to distinguish a fraudulent application from a real one, especially when the identity has built up some online footprint or credit history.
- Deepfake Impersonation
AI is increasingly used to create convincing fake communications, including cloned voices and fabricated videos. Known as deepfakes, this technology allows attackers to clone the voice of a trusted contact or generate a video that looks and sounds like someone you know – a colleague, friend or family member.
For example, you might receive a voicemail from what sounds like your manager urgently requesting a transfer or take a video call that appears to show a loved one in distress. While these tools are not yet widespread in all scams, their use is growing as the technology continues to advance.
In many cases, cybercriminals pair this technology with traditional social engineering tactics, such as urgency, crisis and authority, to pressure victims into acting quickly. As the technology improves, these scams are likely to become more frequent and more difficult to detect.
The end goal is nearly always financial gain, but the path to that goal has become longer and more strategic. Attackers are now willing to go further back in the chain gathering data, observing behaviour and waiting for the right moment to strike.
How to Protect Yourself: Back to Basics
Despite these advanced threats, some of the best protections are still the simplest. Think of your digital home security system: you still lock doors and set alarms. You don’t invite strangers inside without checking who they are. The same mindset applies online.
- Protect your passwords: Use strong, unique ones and never share them. Consider using a password manager to store them securely.
- Use separate accounts: Give others their own logins, especially on shared devices.
- Enable multifactor authentication (MFA): It adds an extra layer of protection. Never share your MFA code, even under pressure or if a message claims to be from a trusted source.
- Pause on urgency or emotional messages: Be cautious with any message that provides time pressure, urgency or crisis. These are classic fraud tactics used to prompt quick, unthinking action.
- Verify out-of-band (OOB): Don’t use contact info given in a message. Instead, go directly to a trusted website or known phone number to check the request is legitimate.
- Keep your devices up to date: Ensure your phone, tablet and computer have the latest updates and security protections. Use antivirus software and turn on automatic updates where possible.
- Discuss fraud with others: Fraud thrives when victims are isolated or unaware. A simple conversation with a colleague, friend or family member could prevent a costly mistake.
Conclusion
Fraud in 2025 is digital-first, increasingly powered by AI, and harder to spot than ever. From synthetic identities to deepfake impersonations, criminals are evolving rapidly. Yet the most effective defences remain simple: stay alert, verify requests and protect your digital identity.
While no single fix can eliminate the threat, a layered approach works best. Use strong passwords, enable multifactor authentication, keep software updated and be cautious with unexpected messages. Cybercriminals rely on urgency and misplaced trust, but awareness and consistency can stop them in their tracks.
In our next article, we’ll take a closer look at the people behind these threats in Who are the hackers? Inside the Billion-Pound Cybercrime Industry.
