This content is for information purposes only. It should not be taken as financial or investment advice. To receive personalised, regulated financial advice regarding your affairs please consult your Financial Planner here at Vesta Wealth in Cumbria, Teesside and across the North of England.
Artificial intelligence (AI) is still taking the world by storm. In finance, it is a double-edged sword. Its benefits include better client insights (for financial planners) and AI-powered budgeting for individuals. However, AI has also equipped cybercriminals with more sophisticated tools.
In 2025, AI-powered financial fraud is not a distant threat; it’s an everyday reality. A case in point is an incident that occurred last year. A worker opened a video call with someone he thought to be the company’s CFO. In fact, it was an AI-generated deepfake. The result was a fraudulent $25.6 million transfer.
As financial planners here in Carlisle, one of our top priorities is safeguarding our clients’ assets and sensitive data. Below, we outline some common types of AI-driven fraud in 2025, offering practical steps to prevent falling victim.
Deepfake Scams
A “deepfake” is a highly realistic, AI-generated video or audio recording. It impersonates a trusted person of the victim – e.g. a client, adviser, CEO, or even a colleague, to authorise fraudulent transactions. For instance, you might receive a video message that looks and sounds like a family member, pretending to be in trouble and requesting an urgent bank transfer.
It might be possible to detect a deepfake by looking out for lip-syncing errors, strange facial expressions or bizarre backgrounds. However, AI technology is advancing rapidly, and these sorts of giveaways are becoming harder to spot.
As such, consider setting up a secret “safe phrase” that you can use with a trusted person to establish authenticity. It could be anything (e.g. “Green Christmas Trees”), but it helps for it to be simple, easy to remember and different from your passwords.
Be especially careful with social media. In 2025, a scammer only needs 20 images of a child to create a deepfake version of them.
Synthetic Identity Fraud
Increasingly, criminals are using AI to create “synthetic identities” (fabricated identities using real and fake information) which are used to open accounts or apply for credit.
For instance, a scammer might break into an insecure website holding a person’s details – e.g. their National Insurance (NI) number and name. They could then use this to build out a fake identity complete with name, email, phone number and employment history.
From there, the scammer can apply for a mobile phone contract (to start building a credit profile) and open a credit card account. Or, they might take out a personal loan or purchase high-value electronics on finance.
One powerful way to protect yourself (and loved ones) is to monitor credit activity – even for children. You can request a manual credit check with major credit reference agencies. If a credit profile exists for a child, raise a red flag immediately.
AI-Enhanced Phishing
Phishing has been a problem since the creation of email. Here, the scammer usually tries to convince you (the message recipient) to visit a fraudulent website – e.g. a fake login page for your bank, where they hope you will enter your personal information.
It is getting harder to detect these emails due to AI. Key giveaways, such as bad grammar and poor context, are becoming rarer as scammers personalise phishing emails using AI, at scale, via publicly available information (e.g. social media and company websites).
To protect yourself, one good practice is to never act on a sensitive email without confirming via another channel (e.g., phone, secure app). Also, encourage a ‘pause and check’ habit. If an email feels urgent, emotional or unusual, treat it as suspicious.
AI-powered phishing often extends beyond email to texts, calls, and messaging apps. Fraudsters may coordinate attacks using multiple channels to build trust. Here, empower yourself by double-checking email domains and phone numbers. Ignore unfamiliar numbers, and consider using two-factor authentication (2FA) to enhance your communication security.
Automated Account Takeover
Machine learning models are getting better at guessing or harvesting passwords through large-scale attacks. Once access is gained, fraudsters use bots to mimic the account holder’s behaviour and avoid detection.
Takeovers may go unnoticed until substantial damage is done, such as stolen funds, altered financial details or unauthorised investment activity.
In 2025, weak and reused passwords will no longer be acceptable for your protection. AI can guess common passwords in seconds. Instead, use passwords that are long (i.e. over 12 characters), complex and not reused across platforms.
If this sounds daunting, consider using password management tools to store and generate secure passwords. Also, avoid writing passwords down or storing them in browsers.
Invitation
We hope this content gave you more clarity. To discuss your own financial plan, please get in touch to arrange a free, no-commitment consultation with an adviser here in Cumbria.
Your capital is at risk. Investments can go down as well as up. Past performance is not indicative of future results. Tax treatment depends on individual circumstances and may change. Content is for information only and not investment advice. Any decision to invest is the reader’s own. Diversification is key to managing risk. Market volatility affects investment values. Inflation erodes savings. Liquidity risks may prevent quick access to funds.