Cifas, a fraud prevention service, has raised alarms about a troubling trend where individuals are selling their own identities, which leaves them vulnerable to financial liabilities from loans or credit taken out by criminals.

This alarming rise in identity fraud is being exacerbated by advancements in artificial intelligence, which enable criminals to create synthetic identities that can bypass security checks with remarkable accuracy.

Mike Haley, CEO of Cifas, has described the situation as a national emergency, highlighting the urgent need for coordinated action across various sectors to combat the increasingly sophisticated threats posed by fraud.

Cifas's recent Fraudscape report reveals that over 217,000 fraud risk cases were submitted to the National Fraud Database in the first half of 2025, with more than 118,000 of these being suspected identity fraud cases.

In addition to identity fraud, the report indicates a rise in employee fraud, where individuals conceal their backgrounds to secure jobs, contributing to the overall increase in fraud cases.

Various sectors are being affected by identity fraud, including motor insurance, mobile account takeovers, and gambling-related fraud, particularly involving the identities of deceased individuals.

Individuals are often lured into selling their identities with promises of attractive financial opportunities, which exposes them to significant risks of debt accumulation.

The use of AI technology by criminals to fabricate profiles poses a serious threat, as these synthetic identities can evade security measures with alarming effectiveness.

The report also highlights practices like 'polygamous working,' where employees hold multiple jobs without employer knowledge, further complicating the fraud landscape.

Haley's call for urgent action underscores the need for a collective response to tackle the evolving threats of fraud, especially as AI continues to enhance criminal capabilities.