Sophisticated fraud surges 180% globally as UK deepfake attacks nearly double

A dramatic shift in fraud tactics has seen sophisticated identity crime surge 180% globally in 2025, with the UK experiencing a near-doubling of deepfake attacks, according to new industry research. The Identity Fraud Report 2025-2026 reveals that criminals are abandoning high-volume, low-success attacks in favour of precision strikes using artificial intelligence, resulting in fewer but more damaging breaches.

Background and Context

The emerging fraud landscape represents what analysts term the "Sophistication Shift"—a fundamental reorientation where attackers prioritize quality over quantity. Rather than launching thousands of basic attempts, fraudsters now deploy coordinated, multi-step attacks combining advanced techniques within single verification attempts. This evolution has been accelerated by mainstream AI tools like ChatGPT and Gemini, which now account for 2% of all falsified documents processed globally, with expectations of double-digit growth in 2026.

Key Figures and Entities

The professional services sector has been particularly hard hit, recording a 232% increase in identity fraud attempts as criminals target legal, consulting, and accounting firms for their sensitive client data. Online media platforms in the UK face the highest exposure with a 6.3% fraud rate, while the internet dating sector reports identical vulnerability levels, with romance scams increasingly driven by AI personas and deepfakes. According to survey data, 64% of European companies reported financial losses from fraud, with 36% citing reputational damage.

Legal and Financial Mechanisms

Fraudsters are exploiting the rapid advancement in AI realism to generate increasingly convincing fraudulent materials. The report indicates that one in five fraudulent verification attempts in Europe involved edited or forged ID documents in 2025. These sophisticated attacks often combine multiple techniques—deepfakes, synthetic identities, and AI-generated documents—creating layered deception that traditional verification systems struggle to detect. The financial impact is amplified by the fact that 87% of Europeans lack understanding of money muling schemes, making them vulnerable to scams designed to transfer illicit funds.

International Implications and Policy Response

Europe faces a particular paradox where overall fraud rates have decreased slightly by 0.4%, yet damages have intensified. This situation stems from fragmented regulatory systems across member states and reliance on manual prevention processes—37% of European businesses still depend on non-automated fraud detection. Regulatory responses are emerging, including the EU AI Act, Denmark's deepfake legislation, and the UK's Online Safety Act. However, experts warn that keeping pace with AI-driven fraud requires closer collaboration between companies and policymakers.

Sources

This report draws on Sumsub's Identity Fraud Report 2025-2026, which analyzed internal identity verification data from 2024-2025, examining over 4,000,000 fraud attempts. The research incorporated findings from a Fraud Exposure Survey of 1,200 end-users and 300+ risk professionals across multiple continents, with additional context from EU regulatory frameworks and UK legislation.