AI is supercharging fraud – and lowering the barrier to entry for criminals

Fraud losses surge as scammers use AI to manipulate victims

UK fraud losses are rising sharply, with authorised push payment (APP) scams up nearly 20% last year

It’s not just volume — it’s how AI is changing the game:

AI is making scams more sophisticated and scalable

Criminals can now impersonate friends, family, or celebrities convincingly

The “barrier to entry” for fraud is falling, enabling more actors to participate

The result:

Victims are no longer just being “tricked” — they are being systematically manipulated through highly personalised, believable interactions

For organisations, this reinforces a critical shift:

Fraud prevention is no longer just about systems and controls

It’s about human behaviour, awareness, and resilience

Three implications worth calling out:

1️⃣ Social engineering is becoming the primary attack vector

2️⃣ Traditional red flags are disappearing as scams become more realistic

3️⃣ Collaboration across sectors (banks, tech platforms, regulators) is now essential

This isn’t a future risk — it’s happening now.

The question for all of us in compliance, fraud, and risk:

Are our controls evolving at the same pace as the threat?

https://www.cityam.com/fraud-losses-surge-as-scammers-use-ai-to-manipulate-victims/