AI Fraud Surges, New Defenses Emerge
AI-powered fraud is escalating, with the UK reporting a 6% jump to 444,000 fraud cases last year [https://invezz.com/news/2026/03/12/ai-driven-fraud-surge-puts-uk-mobile-banking-and-online-accounts-at-risk, https://the-independent.com/news/uk/home-news/artificial-intelligence-ai-fraud-scams-banking-phone-b2936982.html]. Startups like deepidv are launching AI-native identity verification and anti-fraud suites, expanding to San Francisco [https://www.globenewswire.com/news-release/2026/03/12/3254247/0/en/deepidv-Closes-1M-Seed-Round-Expands-to-San-Francisco-and-Launches-Comprehensive-AI-Fraud-Detection-Suite.html]. Banks are introducing device intelligence products like BioCatch’s DeviceIQ to spot banking fraud pre-login [https://securitybrief.com.au/story/biocatch-unveils-deviceiq-to-spot-banking-fraud-pre-login].
The UK's 6% fraud increase translates to roughly £2.3 billion lost to scammers in 2025 alone, with AI-driven phishing and identity theft as primary drivers. Experts point to deepfakes becoming more convincing and readily available as a key factor in the surge. Deepidv's expansion follows a $1 million seed round led by investors including Y Combinator and Soma Capital. Their AI suite analyzes facial biometrics and device data to prevent account takeovers and synthetic identity fraud. BioCatch's DeviceIQ leverages behavioral biometrics to identify anomalies like unusual typing patterns or mouse movements before a user even logs in. Major banks in the UK and US are currently piloting the technology.
