Three problems are hitting UK accounting firms right now:
A fraudster buys a complete synthetic identity kit for £50. Your manual verification takes three days. HMRC finds the beneficial owner you missed was on a sanctions list.
Fraud-as-a-Service has industrialised financial crime. Attack kits come with customer support and money-back guarantees. Your 15-minute manual checks can’t compete with automated tools creating convincing identities in seconds.
This article explains how Fraud-as-a-Service works in 2026 and how digital ID verification is fighting back.
Key Takeaways for Busy Readers
- FaaS platforms now offer deepfake tools, synthetic identity generators, and document forgery kits from £50 monthly
- 47% of cybercrime cases in 2022 involved suspects aged 21 or younger, up from 33% in 2018
- Traditional ID verification fails because it scatters verification across multiple systems, creating compliance gaps
- Electronic verification must check documents against government databases, not just visual inspection
- MLR 2017 requires independent verification sources, which manual processes cannot reliably deliver
- FigsFlow consolidates proposals, engagement letters, and AML verification from £18 monthly versus £95-320 for separate tools
- Complete verification, including sanctions screening, takes 30 seconds per client with automated audit trails
- Beneficial owner identification remains the most commonly missed compliance requirement during HMRC supervision visits
The threat has industrialised. Your defences need to match.
How Fraud-as-a-Service Works in 2026
Fraud-as-a-Service operates exactly like legitimate Software-as-a-Service businesses. Criminals subscribe monthly, access pre-built fraud tools through user-friendly dashboards, and receive customer support when attacks fail. The business model has completely commodified cybercrime.
The FaaS Business Model: Crime as a Subscription
Dark web marketplaces advertise fraud tools using the same tactics as legitimate SaaS vendors. Tiered pricing plans offer basic, professional, and enterprise packages. Customer testimonials praise ease of use. Tutorial videos walk subscribers through their first attacks.
- A basic FaaS subscription costs £50-150 monthly. This includes access to phishing kit templates, credential stuffing tools, and basic malware.
- Professional tiers add synthetic identity generators, deepfake creation tools, and premium stolen credential databases.
- Enterprise packages provide dedicated support and custom attack development.
The democratisation of fraud means technical barriers have disappeared. A teenager with no coding experience can launch sophisticated identity theft campaigns using point-and-click interfaces. The learning curve that once protected businesses has flattened to zero.
Payment processing happens through cryptocurrency, making transactions difficult to trace. Providers offer money-back guarantees if tools fail to bypass basic security measures. Some platforms even provide insurance against law enforcement detection.
Tools Fraudsters Are Using Right Now
Fraud-as-a-Service platforms provide industrial-grade tools that bypass traditional verification systems.
App cloners create multiple instances of legitimate applications, letting fraudsters open dozens of accounts from a single phone. Image injection tools intercept camera feeds during verification and substitute deepfakes or stolen images. Your AML software sees a perfect match because it never receives the real camera input. Emulators generate thousands of unique device profiles, making each fraudulent account appear to come from a different legitimate phone.
The most dangerous tools include:
- APK malware kits that intercept SMS one-time passwords and bypass two-factor authentication
- Bulk SIM cards that enable thousands of fake identities (the SIM cards are real, just not associated with the identity being verified)
- Application tampering that modifies location data, device identifiers, and biometric information before it reaches your servers
- Sophisticated dashboards that track stolen data across hundreds of compromised accounts and automate fund transfers before accounts get frozen
The operational sophistication rivals legitimate businesses. Your manual ID verification processes weren’t built for this threat landscape.
Did You Know?
Fraud-as-a-Service works like SaaS but for crime. Cybercriminals sell fraud kits, bots, and infrastructure on the dark web, making fraud scalable and easy for anyone to launch.
Why FaaS Targets Businesses Like Yours
Accounting firms hold the keys to the financial system. Client trust accounts, access to business banking, and authority to file tax returns make you a high-value target. Compromising your systems provides fraudsters with access to dozens of legitimate business identities.
The shift to remote services expanded your attack surface. Digital onboarding and cloud-based systems create entry points that didn’t exist when clients brought physical documents to your office.
Small and mid-sized practices face the greatest risk. Large firms invest millions in security infrastructure. You’re managing AML obligations between client meetings using systems built for document storage, not fraud prevention.
The consequences have intensified:
- ICAS’s 2025 thematic reviews found 55% of firms misjudged their money laundering risks
- Penalties start at £5,000 and can reach £50,000 or more for serious breaches
- Reputational damage can destroy practices built over decades
FaaS providers target industries with valuable access but limited security budgets. Fraudsters using automated tools improve faster than firms relying on manual verification. What protected you last year fails today.
How ID Verification Stops FaaS Attacks
Electronic ID verification creates friction that automated fraud tools cannot overcome at scale. While legitimate clients complete verification in seconds, fraudsters using synthetic identities fail when their fabricated documents hit government database checks.
Here’s how ID verification stops FaaS attacks:
- Machine-readable zone verification checks encoded passport data against official records, defeating forged documents that look visually perfect
- Electronic database checks confirm document numbers exist in government systems (passport office, DVLA, electoral register)
- Sanctions and PEP screening identify individuals on financial watchlists before you establish business relationships
- Biometric liveness detection requires real-time responses to random prompts that pre-recorded deepfakes cannot replicate
- Complete audit trails timestamp every verification step, proving MLR 2017 compliance and providing forensic evidence when fraud occurs
Automated verification completes in 30 seconds, removing the tension between thoroughness and efficiency. The speed advantage shifts to defenders.
The Problem with Most Modern ID Verification Software
The compliance technology stack for most accounting firms looks like this: proposals in one system, engagement letters in another, document management in a third, AML verification in a fourth. Each tool solves one problem while creating integration nightmares.
The Multi-Tool Problem
Information silos destroy verification continuity. Client data lives in your CRM. Documents arrive via email. Verification certificates sit in your AML software. Risk assessments exist in spreadsheets.
When HMRC requests complete client records during supervision visits, you’re compiling from four separate sources and hoping nothing is missing. The gap between client acceptance and verification creates regulatory risk.
Data re-entry multiplies error rates. Client names get spelled differently across systems. Addresses include or exclude apartment numbers inconsistently. Every manual transfer introduces errors that compromise verification accuracy.
The Cost Barrier
Legacy AML software charges £50-150 monthly just for verification capabilities. Add proposal software, engagement letter platforms, and document management. Total monthly spend reaches £125-285 before conducting a single verification check.
Per-check fees compound the problem. Verification charges of £3-5 per client mean £150-250 in fees when onboarding 50 clients monthly, on top of base subscription costs.
Speed vs Compliance
Manual verification creates impossible trade-offs. Thorough background checks take 15-45 minutes per client. Clients expect instant onboarding like digital banks provide.
The approval bottleneck kills client satisfaction. Enhanced Due Diligence requires senior management approval. In multi-tool environments, this takes three days for a decision that needs three minutes.
A prospect uploads documents to an awkward portal, then waits five days for verification. Your competitor, using modern systems, confirms their identity in 30 seconds and starts work immediately.
Tired of Juggling Multiple Tools for AML Compliance?
So many options, inflated marketing claims, and hidden costs make choosing the right software overwhelming. To make your job easier, we’ve tested and compared the top 6 AML software platforms that actually deliver on their promises.
How FigsFlow Fights FaaS: Complete Protection in One Platform
FigsFlow consolidates everything from initial contact through ongoing compliance into a single integrated workflow. No platform switching. No information silos. Complete protection in one system.
Complete FaaS defence in one platform:
- Electronic verification in 30 seconds connects directly to government databases and credit reference agencies for real-time verification. The system reads machine-readable zones on identity documents and checks against the passport office, DVLA, and international authorities. Forged documents with invented passport numbers fail immediately
- Automated sanctions screening checks every client against PEP lists, financial sanctions lists, and adverse media databases in parallel with identity verification. Lists update constantly, ensuring you always screen against the latest information
- Companies House integration verifies incorporation details automatically, pulling current information about registered office address, directors, and People with Significant Control. Beneficial owner identification happens as part of the workflow, not as a separate manual task
- Multi-source address verification leverages electoral register searches, credit reference checks, and utility account validation. This catches addresses that exist but aren’t associated with the individual claiming them
- Complete audit trails timestamp every action automatically. Document uploads, verification checks, risk assessments, and approvals all get recorded. When HMRC requests evidence, you produce complete client records instantly
Verification quality meets MLR 2017 standards without requiring compliance expertise from every staff member. The system enforces regulatory requirements through automated workflows that prevent shortcuts.
Beyond ID Verification: What FigsFlow Offers
- Proposals and engagement letters (generate in nine clicks)
- Built-in e-signature with automated workflows
- Document collection and management
- Risk assessment templates customised to client types
- Role-based team access and permissions
- Integrations with HubSpot, Xero, QuickBooks, and Stripe
- Dashboard compliance reporting across your entire portfolio
All this comes at just £18 monthly (£8 base platform + £10 AML module + £2.10 per verification). And the best part: it’s yours for the next 30 days at zero cost.
What to Do Next
If you want real protection from FaaS, follow these steps:
Step 1: Choose Reliable Software and Test It Select a platform with electronic verification, automated sanctions screening, and complete audit trails. Test it with real client onboarding scenarios.
Step 2: Audit Your Current Process Against MLR 2017. Check if you conduct electronic verification against government databases or rely on visual inspection. Review if you maintain timestamped audit trails or just document copies.
Step 3: Calculate Your True Costs. Compare monthly software subscriptions plus the opportunity cost of professional time on manual verification. Most firms spend more on scattered systems than consolidated platforms.
Ready for Step 1?
We’ve tested dozens of AML software platforms. FigsFlow consistently delivers the best combination of security, speed, and value. Register for free and see automated verification replace manual processes in 30 seconds.
Additional Resources
- Money Laundering Regulations 2017: The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
- HMRC Economic Crime Supervision Handbook: Economic Crime Supervision Handbook – HMRC internal manual – GOV.UK
- Complete AML Software Guide: Complete Guide to AML Software for Accountants, Bookkeepers & Tax Advisors | FigsFlow
- Writing an AML Policy: Writing an AML Policy: Full Guide 2025| FigsFlow
- High-Risk Jurisdictions: “Black and grey” lists
Conclusion
Fraud-as-a-Service has industrialised cybercrime. Tools once reserved for sophisticated hackers now cost less than gym memberships. Your manual verification processes weren’t built for this threat landscape.
MLR 2017 demands electronic checks against government databases, automated sanctions screening, and comprehensive audit trails. Manual processes cannot deliver this while maintaining the speed clients expect.
FigsFlow closes the gap. Electronic verification in 30 seconds, automated sanctions screening, and complete audit trails from £18 monthly. Everything is consolidated in one platform.
The question isn’t whether to modernise verification but whether you’ll do it before the next HMRC visit or after the first penalty.
Ready to See Digital ID Verification in Action?
Frequently Asked Questions
FaaS platforms sell complete identity theft toolkits, including synthetic identity creators, deepfake generators, and device emulators for as little as £50. These platforms offer customer support and tutorials, making sophisticated fraud accessible to anyone with a web browser.
Accounting firms hold access to client trust accounts, business banking, and tax filing authority. Compromising your systems gives fraudsters access to dozens of legitimate business identities they can exploit for money laundering and financial crime.
Electronic verification checks document numbers against government databases in real-time. Forged documents that look visually perfect fail immediately because their numbers don’t exist in official systems. Biometric liveness detection requires real-time responses that pre-recorded deepfakes cannot replicate.
Information silos destroy verification continuity. Client data, documents, verification certificates, and risk assessments exist in separate systems. When HMRC requests complete records, you compile from four sources. Data re-entry multiplies errors, and total costs reach £125-285 monthly before conducting a single check.
FigsFlow costs £18 monthly (£8 base platform + £10 AML module) plus £2.10 per verification. A practice onboarding 20 clients monthly pays approximately £60 total. This includes proposals, engagement letters, document management, and complete AML compliance in one platform.
