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A massive rise in fraud and scams in the UK has made mainly younger generations at risk. In fact, Svetilo Todorov, Managing Director at emerchantpay says their research found that an entire 57% of consumers aged 18 to 29 have noticed an increase in financial scam attempts this year alone.

This rise has AI to thank, because Cifas reports that a lot of the fraud cases in the UK are related to the rise in AI scams.

Todorov says 鈥淎ttacks聽are being scaled at speed and with a level of聽sophistication not yet seen before,聽with聽a rise in聽new tools聽being used聽to automate聽phishing聽messages,聽build聽fake websites, and, recently, even聽mimic human voices聽over the聽phone.鈥�

Why And How Are Gen Z Consumers Facing The Highest Risk?

Interestingly, Gen Z seems to be falling for the tricks more, even though they鈥檇 be considered the most digitally savvy and aware. But it seems like that is the very generation that takes the least precaution when it comes to shopping online.

61% of 18 to 29 year olds report that they do not make purchases through random links they do not trust online. Boomers are actually the most cautious, with 86% of them reporting the same.

Todorov adds, 鈥淐ompounding the problem is a greater sense of聽stigma聽around fraud for聽younger聽shoppers. More than half (54%) of Gen Z consumers聽worry they will be聽judged聽if they fall victim聽to a scam, compared with only a聽quarter聽of those aged聽between聽62聽and聽80.

鈥淭his聽concern聽may also explain why younger cohorts are more hesitant聽to report fraud losses of 拢100 or less.

鈥淢eanwhile, the environments聽in which younger consumers shop聽have become聽a聽key target聽for criminals.聽Citizens Advice聽has聽identified聽online shopping as the 鈥渢op trap鈥澛爁or scammers, with more than a quarter (26%) of those deceived by fraudsters in the past 12 months being targeted while shopping聽online.

鈥淎s the most active participants in digital commerce, younger consumers increasingly depend on merchants to provide payment experiences that are highly secure, while not compromising on the speed and convenience upon which they have also come to rely.鈥�

Gen Z being raised in a time where AI moves into every life brings new risks that feel less obvious than the older threats.

NatWest Thrive says people should only ship on trusted websites and double check web addresses for spelling errors. A fake site can look legit at first, but that鈥檚 exactly what makes it so easy to fall for. But being aware of these small details can be one of the easiest ways to avoid the scams.

It鈥檚 also helpful to check reviews. NatWest Thrive explains that ratings and customer feedback gives you a quick sense of whether a site or product can be trusted. The more unknown sites are likely the riskier option, especially when prices look unbelievably low.

Banking apps can act as an early warning system and NatWest Thrive advises setting up spending alerts so any unusual transaction appears straight away. Quick action gives a better chance of stopping fraud before more money is taken.

Unexpected messages are another common route for scams – NatWest Thrive says people should be cautious of random emails, texts or calls from unknown contacts. Sending money or personal details to strangers online can lead to serious loss.

Passwords are still one of the simplest lines of defence right now. NatWest Thrive recommends strong, unique passwords for each account or using a password manager. Reusing the same password across platforms makes it easier for attackers to get into multiple accounts.

Public spaces can also create risk and doing things like entering card details on public WiFi or in busy places makes it easier for others to see private information. NatWest Thrive advises avoiding online shopping in these environments and only using secure pages with 鈥渉ttps鈥� and a lock symbol next to the site.

Selling online comes with its own risks too. NatWest Thrive says sellers should use secure payment systems and never send items before full payment arrives. This protects against buyers who disappear after receiving goods.

How Does This Impact UK Businesses?

As Todorov puts it, 鈥淔or businesses on the frontline of digital commerce that are serving聽consumers聽every day, payment security is a聽constant聽concern. They are under relentless pressure to ensure their cyber defences are robust enough to match聽the聽rising, fast-moving聽fraud threat.

鈥淩ecent breaches, such as the cyberattack that disrupted聽Marks & Spencer鈥檚聽operations聽in 2025, show how quickly聽both聽operations and customer confidence can be shaken.聽Failure to聽prioritise safe payment聽systems聽can come with catastrophic consequences 鈥撀爀rosion of聽customer trust,聽financial losses, and operational downtime聽to name a few.鈥�

What Should Businesses Do To Keep People Safe?

Businesses cannot afford to treat payment security as a last priority these days. Todorov says, 鈥渢hree quarters (75%) of people cite security is their main priority when spending online.鈥� This data, together with the earlier data referenced by Todorov, comes from research by Opinium, which surveyed 2,000 UK adults in February 2026.

A poor checkout experience can cost more than a single sale. Todorov explains that weak security leads to cart abandonment, low customer retention and loss of trust. Customers expect payments to be quick and safe at the same time, and anything less can push them elsewhere.

Payment service providers are to be the most responsible here. Todorov says working with PSPs helps merchants keep up with fraud trends and meet changing customer expectations across different age groups and markets. These partnerships bring in tools and expertise that many businesses do not have in house.

Tech such as 3D Secure 2 strengthens customer checks during payments. Todorov explains that it supports real time authentication and smoother payment flows, while also shifting liability in cases where fraud slips through after proper checks.

Education is also so important, on both sides. Todorov says, 鈥渨hen consumers are informed, they are better able to make behavioural changes to reduce risk 鈥� such as avoiding untrusted links.鈥� This means businesses should not stay silent. Clear guidance during checkout or through emails can help customers make safer choices.

But also, responsibility does not fall on users alone. Todorov makes it clear that fraud protection is the merchants and their payment partners鈥� responsibility. Strong systems, backed by the right technology, build trust and help businesses grow without putting customers at risk.