AI-Powered Fraud
AI-powered fraud among top threats in Europe, warns Europol as Organised Crime shifts online. The DNA of organised crime is changing – and so is the threat to Europe.The most recent EU Serious and Organised Crime Threat Assessment (SOCTA) report from Europol indicates that AI-assisted fraud is increasingly becoming a significant threat to stability across Europe.
Released every four years, the SOCTA report offers an in-depth examination of serious and organised crime in Europe. It outlines significant criminal activities, the composition of criminal networks, and new emerging threats. The 2025 edition draws attention to seven primary concerns:
Online Fraud:
Europol has indicated that fraud schemes increasingly utilise Ai driven social engineering techniques and leverage extensive stolen personal data.
CyberAttacks:
While ransomware continues to be the main threat, there is a growing prevalence of attacks targeting critical infrastructure, governments, businesses, and individuals, many of which are politically motivated.
Online Child Sexual Exploitation:
Offenders are using generative AI to create material for child sexual abuse and to aid in online grooming efforts.
Migrant Smuggling:
According to Europol, smuggling networks impose exorbitant fees and demonstrate a complete lack of respect for human dignity, exploiting ongoing geopolitical crises.
DrugTrafficking:
The drug trade is evolving, with emerging routes and methods. Europol has also highlighted a rise in violence and the recruitment of youth within the EU.
Firearms Trafficking:
The combination of technological advancements, online marketplaces, and the availability of weapons in Europe has made illegal firearms more accessible.
WasteCrime:
Criminals take advantage of legitimate businesses in this often-neglected and profitable sector, resulting in significant environmental harm.
Crime is moving online
Europol has observed that criminal organisations are increasingly utilising digital tools. They noted, “Aspects of the criminal process are progressively shifting online, encompassing everything from recruitment and communication to payment systems and automation powered by AI.”
Criminal networks take advantage of encrypted communication and digital platforms to attract new members, coordinate their actions, and extort victims across national boundaries. Europol also highlighted a rise in violence associated with organised crime in various EU countries, which is beginning to permeate broader society. “This violence is influenced by and operates within criminal markets characterized by competition and conflict. It is exacerbated by the use of encrypted communication methods and online platforms,” Europol remarked.
Exploiting The Young
Europol has issued a warning that criminal organisations are increasingly utilising young individuals to protect their leaders from being identified and prosecuted. The agency stated, “The exploitation of young offenders not only undermines the social fabric but also acts as a safeguard for criminal leadership. These reinforcing strategies enable criminal networks to grow, enhance their profits, and bolster their resilience, creating a cycle that perpetuates itself.”
The So What To Jersey
Whilst not all of the above will apply directly to Jersey, we have seen a growing number of cyber attacks, online fraud, and more targeting the island. As an International Finance Centre, we also must be aware of how criminals could utilise our financial services industry and its products for money laundering or terrorist financing.
You can read EUROPOL full press release and download the report here: https://go.fiu.je/oeu