Surge in AI fraud leads to revenue losses
A new report reveals that 73 percent of UK fraud professionals report that online fraud has negatively affected their company's revenue in the past year.
The UK Fraud Industry Pulse Survey from Veriff shows 72.5 percent of businesses have seen an increase in online fraud over the past 12 months.
For 64 percent of businesses, this translated to revenue losses of between one and nine percent, costing them millions. More alarmingly, nine percent of UK businesses reported losses ranging between 10 and 20 percent of their annual revenue.
"These findings paint a stark picture of the growing financial threat that online fraud poses to British businesses," says Iryna Bondar, senior fraud group manager at Veriff. "We're seeing not just more fraud attempts, but increasingly sophisticated attacks that can bypass traditional security measures."
The survey also uncovers a dangerous paradox in fraud preparedness. While 22 percent of UK companies reported no revenue losses to fraud -- seemingly positive news -- an overwhelming 88.5 percent expect fraud to surge in 2025. Yet despite this anticipated threat, 52.5 percent admit being only 'somewhat prepared' for these attacks.
"What we're witnessing is a worrying disconnect," adds Bondar. "Many companies that haven't yet suffered significant losses are confusing luck with preparedness. This complacency, not strength, leaves them particularly vulnerable as AI-driven threats rapidly outpace legacy security tools. It's not a question of if they'll be targeted, but when."
For 24 percent of UK businesses, 11 to 25 percent of monthly ID verification attempts are fraudulent. For 10 percent of companies, fraudulent attempts exceed 25 percent of all verification volume. This vulnerability is particularly worrying amid the rise of 'identity factories' where criminals use AI to mass-produce synthetic identities at an unprecedented scale.
Parallel surveys show this is a global trend, with similar patterns in the US and Brazil. 72 percent of US and 70 percent of Brazilian respondents also report increased fraud. Customer expectations are also driving the need for stronger defenses, with 71 percent of UK respondents reporting that customers are increasingly demanding robust fraud prevention capabilities.
You can get the full report on the Veriff site.
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