Experian Reports £130 Million in Identity Fraud in Q1 2025

Identity fraud in the UK is rising sharply, putting both businesses and individuals at increased risk. According to new figures released by credit reporting agency Experian, more than £129 million in fraudulent activity was detected and prevented in the first quarter of 2025, a 10% increase compared to the same period in 2024 [1].

The data reveals a worrying trend: criminals are targeting bank accounts and financial services using stolen or fake identities, with savings account fraud attempts alone surging 92% year-on-year [1].

“This isn’t just a consumer issue. Businesses, especially in financial services and online retail, are on the front line of a fast-evolving fraud landscape,” said John Webb, Consumer Affairs Executive at Experian.

The Business Impact

Given this reported increase in attempted fraud, the message is clear for companies handling customer transactions or onboarding: fraudsters are evolving, and so must your defences.

Key threats include:

• Fake account creation to access credit or launder money
  
• Synthetic identity fraud, blending real and fabricated data
  
• Regulatory and reputational risks from failed fraud prevention

Experian credits the increased detection figures to the use of AI-powered tools, biometric checks, and real-time behavioural monitoring. However, the rise in attempted fraud signals that criminal tactics are also becoming more advanced [2].

What Businesses Can Do to Stay Ahead

To stay ahead, businesses should:

• Conduct regular risk audits of customer onboarding processes
  
• Invest in fraud detection software with AI capabilities
  
• Provide ongoing staff training to spot social engineering and phishing attempts
  
• Strengthen multi-factor authentication for all systems

“Stopping fraud at the source is more efficient than cleaning up the damage afterwards,” Webb added. “Fraud prevention should now be considered a core business function.”

What Individuals Can Do to Protect Themselves

While companies strengthen their systems, everyday consumers also need to take fraud prevention seriously, especially as phishing emails, data leaks, and impersonation scams become more common.

Experian’s top tips for individuals include:

• Check your credit reports regularly across all three UK agencies
  
• Use strong, unique passwords and enable two-factor authentication
  
• Redirect your post if you move home, and update all official records
  
• Install antivirus software and avoid public Wi-Fi for banking or shopping
  
• Watch for phishing messages and avoid clicking on unknown links or attachments

If you suspect you’ve been targeted by identity fraud, take the following steps immediately:

• Contact your bank and creditors to freeze accounts and investigate
  
• Add a Notice of Correction to your credit files
  
• Apply for Cifas Protective Registration, which can help flag suspicious applications made in your name. 
• Report the fraud to Action Fraud, the UK’s national cybercrime centre [1][3]
  

How AJC Supports Your Fraud Prevention Strategy

At AJC, we understand the growing risks posed by identity fraud and work closely with organisations to help reduce exposure, respond to threats, and build long-term resilience.

We specialise in fraud prevention, risk management, and cyber security solutions to help businesses stay protected against identity fraud. Our team provides expert advice, fraud risk assessments, and tailored training to help organisations identify vulnerabilities and implement effective fraud prevention strategies. 

Whether you’re a startup or a high-street institution, AJC provides the tools and insight to help you stay informed, protect your data, and reduce fraud risk in an increasingly complex threat landscape.

If you need support in strengthening your fraud defences, get in touch with AJC today. Contact us on 020 7101 4861 or email us at info@ajollyconsulting.co.uk if you think we can help.

References

[1] Experian PLC. Experian Issues New Warning as Identity Fraud Soars in 2025.
https://www.experianplc.com/newsroom/press-releases/2025/experian-issues-new-warning-as-identity-fraud-soars-in-2025

[2] UK Finance. Fraud the Facts 2024: The Definitive Overview of Payment Fraud.
https://www.ukfinance.org.uk/policy-and-guidance/reports-publications/fraud-facts-2024

[3] Action Fraud. Reporting Fraud and Cyber Crime in the UK.
https://www.actionfraud.police.uk/

[4] Cifas. Identity Protection and the National Fraud Database.
https://www.cifas.org.uk/

Image accreditation: Nadine E (2019) on Unsplash.com. Last accessed on 24th June 2025. Available here.