AI identity fraud fears surging among UK homebuyers

Nearly two-thirds of UK homebuyers are worried about AI-driven identity theft, according to new research by Credas Technologies, as advanced tools for creating fake documents become more widely available.

The survey of 1,000 UK consumers found that 62% are concerned about the emerging threat of artificial intelligence in fraud. The findings come as generative AI tools make it easier for criminals to produce convincing counterfeit identity documents and synthetic identities.

Credas said AI now allows fraudsters to manipulate images and documents at scale. It said this trend is changing the nature of identity crime in the property market and beyond.

Despite these concerns, many consumers still use insecure channels when sharing sensitive information. The survey found that 62% send identity documents by email. One in ten respondents said they use WhatsApp for the same purpose.

These methods do not provide regulated audit trails for compliance checks. They also leave consumers unsure about where their data is stored and who has seen it.

Credas said this pattern shows a gap between consumer awareness of AI-related risks and the tools they use in practice. Many people recognise the threat but still fall back on familiar communication apps.

The research also highlighted uncertainty over data access and control. Some 58% of respondents said they are unsure who is accessing their personal information once they have shared it.

A large majority expressed concern about data governance. The survey reported that 86% view control over how their data is shared as important or very important.

Tim Barnett, Chief Executive of Credas, said consumers are stuck between rising threats and outdated processes. "Artificial intelligence has fundamentally changed the fraud landscape, and consumers are becoming increasingly aware of the risks. Yet many are relying on outdated tools - such as email and messaging apps - that were never designed for secure identity verification. That's exactly why we've built the Credas Compliance Wallet," said Barnett, CEO, Credas.

Compliance wallet

Credas has developed a digital Compliance Wallet that stores identity and compliance data in a single profile. The product is aimed at sectors such as property, legal and professional services that require repeat checks on the same client.

The company said the wallet builds a comprehensive compliance profile over time. It includes identity verification, anti-money laundering checks, address verification, and checks against politically exposed persons (PEPs) and sanctions lists.

Users can share their profile with third parties through a secure channel. Each interaction creates a full audit trail of who has accessed the data and when.

Credas said this approach reduces the need for consumers to send documents repeatedly over email or consumer messaging apps. It also links identity data to regulated workflows rather than informal communications.

The firm has built its system on a range of identity verification techniques. These include biometric facial recognition, liveness detection and near-field communication (NFC) and cryptographic methods.

These tools check that the person presenting an identity document matches the owner. They also validate digital information embedded in modern identity cards and passports.

Credas said its methods give a high degree of confidence in the authenticity of a customer's identity. It said this is important as fraudsters adopt AI-based tools.

Barnett said the new product is designed as a direct response to AI-based fraud risks. "The Credas Wallet is a highly effective antidote to AI-generated fraud," said Barnett. "Instead of repeatedly sharing documents via insecure channels, consumers verify once and share securely with full transparency over who's accessing their information."

Market backdrop

Credas was founded in 2016 and is based in Cardiff. The company focuses on remote identity verification for regulated sectors such as property and legal services.

The firm says it verifies more than four million individuals each year. It supplies compliance and onboarding software to legal, property and business professionals across the UK.

Credas was the first Identity Service Provider to be certified at a "very high" level of confidence under the UK Government Trust Framework. This framework sets standards for digital identity services in the UK.

The latest research suggests continued tension between consumer behaviour and security requirements in high-value transactions such as home purchases. The firm said it expects scrutiny of identity checks to increase as AI-related fraud techniques advance.