Seven in 10 (72%) people say fraud and scam attempts are becoming more convincing, as criminals increasingly use artificial intelligence to enhance their tactics, according to new research from global payments provider emerchantpay.
The growing use of AI by fraudsters is making scams harder to detect, with 56% of respondents believing AI is making fraud more difficult to identify.
Overall, half (50%) of UK adults say financial scams have increased over the past year, with Gen Z consumers reporting the highest exposure, as 57% say scam attempts have risen.
The findings come as fraudsters increasingly target online commerce channels. Recent research from Citizens Advice found that online shopping has become the “top trap” for scammers, with more than a quarter (26%) of those who were deceived by fraudsters in the past 12 months being targeted while shopping online.
Growing scam activity is also influencing consumer behaviour. Three quarters (75%) of respondents said they now avoid making purchases through links shared on social media due to concerns about potential fraud.
Despite the rising threat, stigma remains a significant barrier to reporting scams. Six in ten (60%) UK adults said they would feel embarrassed if they fell victim to fraud, while 39% worry they would be judged if they lost money.
As a result, many smaller losses go unreported. Around nine million people – equivalent to 17% of UK adults – say they would not report losing less than £100 to a scam, according to the research.
Alexander Berrai, Deputy CEO at emerchantpay, said, “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 role 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.”
Copyright © 2026 FinTech Global
