Seven in ten (72%) people report that fraud and scam attempts are more convincing than they used to be, as fraudsters increasingly embrace AI, according to new research from global payments provider, emerchantpay.   

The rapid expansion and growing use of AI by fraudsters is increasing the effectiveness of scam attempts, as six in ten (56%) believe AI is making fraud and scams harder to identify.  Overall, half (50%) of all UK adults report an increase in financial scams over the past year, with Gen Z consumers most at risk (57% report rising scam attempts). 

Recent findings from Citizens Advice identify online shopping as the ‘top trap’ for scammers, with more than a quarter (26%) of those deceived by fraudsters in the past 12 months being targeted while shopping online.  

Increased fraud attempts have also driven a change in consumer behaviour, with 75% of people avoiding making purchases from links shared on social media due to a fear of scams. 

However, concerns about the stigma of fraud and scam attacks remain common. Six in ten (60%) UK adults admit they would feel embarrassed if they fell victim to fraud or scams and 39% are concerned about being judged if they lost money. 

This stigma is likely to impact consumers reporting when they do lose money to scams. Around nine million people – 17% of UK adults - say they would not report losing less than £100 to a scam*.   

Consumers need more support to stay protected from fraud and scams including from banks, retailers and payment providers – a key part of this is ensuring that consumers have access to secure payment options as well as education to identify potential scams.  

Alexander Berrai, Deputy CEO at emerchantpay, comments: “With AI significantly lowering the barrier for fraudsters to launch sophisticated scams at scale, the industry cannot rely on legacy fraud controls. Consumer protections frameworks need to evolve at the same pace as the fraud landscape.  

“Education is critical – but it cannot sit with consumers alone. Retailers, banks, payment providers and social media platforms play a critical in reducing exposure to fraud and collaboration across the sector is essential.   

“At the same time merchants must ensure they offer secure, well managed payment options and embed effective fraud prevention directly into the transaction flow. Working closely with experienced payments partners is no longer optional - it is fundamental to protecting revenue and preserving consumer trust.”   

emerchantpay is a global payment service provider (PSP) and acquirer empowering merchants through simplified and effective payments processing to deliver faster, smarter and safer payments. It primarily works with medium, large and enterprise businesses across a range of sectors including travel, eCommerce, retail and financial services.  

* Based on analysis of the latest UK population figures.