Impersonation scams to get more sophisticated - and AI is partly to blame

AI has made it harder than ever to tell what’s real and what’s fake - and that’s an absolute gift for fraudsters.

That’s why the Financial Conduct Authority (FCA) is warning that impersonation scams are set to become even more sophisticated in 2026. 

How are fraudsters using AI?

Criminals are using AI to generate “highly polished” communications, such as texts, emails and phone scripts.

And these, the FCA says, “closely mimic” the language used by banks, regulators and government bodies.

This, it said, makes it even harder for people to know if a communication is genuine or not.

So it’s really important to be aware of the risk and on the lookout for possible warning signs.

Speaking to the Independent, an FCA spokesperson said: “As these techniques evolve, the most important defence is verifying who you’re dealing with before you act.”

Red flags to watch out for

Fraudsters will use many different methods to steal money from unsuspecting people, such as:

• imitating trusted brands
• offering tempting deals
• creating a sense of urgency so you pay quickly

But there may be clues that suggest these deals aren’t what they seem, such as:

• poor spelling and grammar on the website
• no customer reviews or ratings
• no secure payment options

How to stay safe from scammers

Scammers are very good at appearing to be brands that we know and trust.

But there are steps you can take to protect yourself.

Be suspicious of social media ads

Scammers often use platforms like Facebook and Instagram to target people with tempting ads or posts that lead to fake websites.

Double-check the web address

Fake websites often have small clues that they aren’t genuine, such as unusual domains and small spelling errors.

Avoid bank transfers

Use secure payment methods, such as credit or debit cards, or trusted digital wallets, so you’re protected if something goes wrong.

Don’t click on links in messages 

Links from fraudsters may contain malware or take you to fake websites, so only pay through a retailer’s official website.

Don’t act impulsively

Scammers want you to make a quick decision, so don’t let yourself being rushed into handing over any money.

Finally, don’t forget the adage that if something seems too good to be true, then it probably is.

Check out our guide on how to outsmart online scammers for more tips to help you stay safe.

Reporting a scam

If you’ve been scammed, report it to Citizens Advice and they’ll pass information onto Trading Standards, who’ll decide whether or not to investigate.

You can also tell Report Fraud on their website or by calling 0300 123 2040.

If you spot an online scam advert, you can report it to the Advertising Standards Authority.