City of London Police issues inaugural Report Fraud Annual Assessment

The assessment, which draws on reports submitted by fraud victims during the 2025-2026 financial year, provides insight into the evolving methods used by fraudsters, including the growing use of Artificial Intelligence (AI) and cryptocurrency. The document also proceeds to highlight the significant financial, emotional and psychological harm that fraud can realise.

Reports of where victims identified AI as a factor have increased by 395%, rising from 193 reports in 2024-2025 to 956 reports in 2025-2026. During the same period, reported losses linked to AI-enabled crime increased from £1.2 million to £9.6 million, demonstrating precisely how criminals are increasingly exploiting new technology in order to make acts of fraud more convincing and that much harder for victims to identify.

Identifying emerging threats

Deputy Commissioner Nik Adams of the City of London Police explained: “Behind every fraud report is an individual whose life has been affected. Victims can lose not only money, but also confidence, peace of mind and trust in others. The Report Fraud Annual Assessment helps us to better understand the experiences of victims and the increasingly sophisticated methods criminals are using to target them.”

Adams continued: “Every report we receive matters. The information victims provide helps us to identify emerging threats, protect others from becoming victims and strengthens our response across law enforcement, Government and industry. Fraud is not a victimless crime. By listening to victims and learning from their experiences, we can improve the support we provide and help to prevent more people from suffering the same harm.”

The assessment also highlights how information provided by victims is helping to improve the support available to those affected by cyber crime and fraud. Between January and June this year, upwards of 180,000 victims received an outcome to their own personal report of fraud, including an explanation of why a given case had been closed, in addition to tailored prevention advice relevant to the type of cyber crime or fraud reported.

Over the same period, average times for report review, assessment, force dissemination decisions and victim updates reduced from 37 days to five days, with many cases reviewed within 24 to 48 hours.

More than 10,600 victims also received specialist victim care services through Report Fraud, with customer satisfaction averaging 93%. Pleasingly, nearly three-quarters of surveyed victims stated that they felt safer as a result of the support and advice they received.

Artificial Intelligence

One of the most significant emerging threats identified in the assessment is the growing use of AI by criminals to support existing fraud types and create a false sense of trust and legitimacy.

Intelligence from victims shows that criminals are using AI-generated videos, cloned voices, manipulated images, fake websites and chatbot technology to make fraud attempts appear more authentic and increase the likelihood of victims being deceived.

Investment fraud accounted for the largest proportion of AI-enabled reports. Victims commonly reported being targeted by AI-generated videos featuring trusted public figures apparently endorsing investment opportunities.

In one report, a victim described investing after seeing what appeared to be a video of a well-known celebrity promoting an investment opportunity on social media. The victim was shown a platform displaying apparent profits and encouraged to invest further funds before later discovering warnings suggesting the endorsement video had been generated using AI and was linked to a scam.

Reports are highlighted of instances where victims believe criminals used AI-generated audio in order to clone voices and bypass telephone banking security measures.

Use of cryptocurrency

The City of London Police’s assessment outlines the increasing role of cryptocurrency in fraud, particularly investment fraud, where victims are often persuaded to transfer funds into what appears to be legitimate investment platforms before discovering that they’ve been defrauded.

The findings demonstrate how criminals continue to adapt their methods, exploiting new technologies to target victims and move criminal proceeds, creating additional challenges for enforcement and recovery.

As the national lead force for fraud, the City of London Police is encouraging anyone who believes they’ve been a victim of cyber crime or fraud to report it through Report Fraud.

Every report counts as it represents somebody’s lived experience of harm. As well as helping to understand emerging threats, reports can provide victims with access to advice, support and safeguarding where appropriate.

The information shared by victims assists law enforcement, Government and industry partners to work together to better protect the public from future harm.

*Download the Report Fraud Annual Assessment in full at www.reportfraud.police.uk