Card fraud rates ‘often spike around now as shoppers prepare for Christmas’

Card fraud rates tend to spike in the months of November and December, data company Experian and fraud prevention service Cifas are warning.

Potentially fraudulent savings account openings have also been on the increase, with much of this driven by AI (artificial intelligence) generated identities as criminals use accounts to house stolen or laundered money.

AI technology allows criminals to rapidly generate synthetic identities using a mix of real and fake information.

This makes it easier to launch large-scale attacks on businesses and produce convincing fake documents, such as passports, making fraudulent applications harder to detect.

AI scams, identity fraud, accounts being taken over by criminals, investment scams, social media scams and employee scams are among increasingly prominent frauds, the report warned.

Cifas members reported more than 74,000 cases of account takeover fraud in 2024, up 76% when compared with 2023, while figures for the first six months of 2025 have already reached more than 38,000 cases.

The level of account takeover fraud shows how critical it is for people to keep their personal information as secure as possible, Cifas said.

Paul Weathersby, chief product officer, identity and fraud, at Experian UK and Ireland, said: “Fortunately, businesses are deploying increasingly sophisticated technology to identify and prevent fraud.

“By deploying a multi-layered approach incorporating biometric and behavioural technology, organisations can ensure their defences are fit-for-purpose.”

Mike Haley, chief executive at Cifas, said: “Fraud doesn’t take a holiday – in fact, the festive season often fuels it.

“As we unwrap Christmas fraud, increased spending, stretched resources, and seasonal staffing can create the perfect storm for criminals to exploit vulnerabilities at scale and commit a range of crimes – from identity fraud to account takeover.

“Fraud may be evolving, but so is our response.”