By PAUL O’DONOGHUE, Senior Correspondent
AI-assisted fraud is a growing threat to Europe’s stability, according to the latest EU Serious and Organized Crime Threat Assessment (SOCTA) report from Europol.
Published every four years, the SOCTA report provides a comprehensive analysis of serious and organized crime in Europe. It identifies key criminal activities, the structure of criminal networks, and emerging threats. The 2025 edition highlights seven major concerns:
AI fraud among top Europol threats
- Online Fraud: Europol warned that fraud schemes are increasingly driven by AI-powered social engineering and access to vast amounts of stolen personal data.
- Cyber-Attacks: Ransomware remains the primary threat, but attacks on critical infrastructure, governments, businesses, and individuals are rising. Many of these incidents have state-aligned objectives.
- Online Child Sexual Exploitation: Criminals use generative AI to produce child sexual abuse material and facilitate online grooming.
- Migrant Smuggling: Networks charge “extortionate fees and show complete disregard for human dignity, exploiting geopolitical crises,” Europol said.
- Drug Trafficking: The market is diversifying, with new routes and methods emerging. Europol warned of increasing violence and the recruitment of young people across the EU.
- Firearms Trafficking: Advancements in technology, online marketplaces, and weapons availability in Europe have expanded access to illegal firearms.
- Waste Crime: Criminals exploit legitimate businesses in this often-overlooked but lucrative sector, causing severe environmental damage.
Crime is Moving Online
Europol said that criminal operations are increasingly relying on digital tools.
“Elements of every criminal process are increasingly moving online – from recruitment and communication to payment systems and AI-driven automation,” Europol said.
Criminal networks exploit encrypted communication and online platforms to recruit members, coordinate activities, and extort victims across borders. Europol also noted that organised crime-related violence is intensifying in several EU countries and spreading into wider society.
“This violence moves with and is shaped by criminal markets prone to competition and conflict. It is further fuelled by encrypted communication tools and online platforms,” Europol stated.
Exploiting youth
Europol warned that criminal groups increasingly use young people to shield leaders from identification and prosecution.
“The criminal exploitation of young perpetrators not only tears at the social fabric but also serves as a protective layer for criminal leadership,” the agency said.
“These reinforcing tactics allow criminal networks to expand, maximise profits, and strengthen their resilience, creating a self-perpetuating cycle.”
‘AML Intelligence ‘is bringing together the top global leaders at ‘European Anti-Financial Crime Summit 2025 in Dublin on May 7 next to discuss this and the other key issues affecting banks, fintechs, gaming operators and regulators.
Europol Executive Director Catherine De Bolle and AMLA Chair Bruna Szego will deliver Keynote Addresses, offering critical insights into the future of financial crime resilience. Be in the room where the fight against financial crime is being shaped. Have you or your AFC Department secured your ticket yet? 
Visit the ‘Events’ section on this site to book your place.
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