Generative AI fuels surge in online fraud risks in 2026

Online scams are expected to surge in 2026, overtaking ransomware as the top cyber-risk, the World Economic Forum warned, driven by the growing use of generative AI.

Executives are increasingly concerned about AI-driven scams that are easier to launch and harder to detect than traditional cybercrime. WEF managing director Jeremy Jurgens said leaders now face the challenge of acting collectively to protect trust and stability in an AI-driven digital environment.

Consumers are also feeling the impact. An Experian report found 68% of people now see identity theft as their main concern, while US Federal Trade Commission data shows consumer fraud losses reached $12.5 billion in 2024, up 25% year on year.

Generative AI is enabling more convincing phishing, voice cloning, and impersonation attempts. The WEF reported that 62% of executives experienced phishing attacks, 37% encountered invoice fraud, and 32% reported identity theft, with vulnerable groups increasingly targeted through synthetic content abuse.

Experts warn that many organisations still lack the skills and resources to defend against evolving threats. Consumer groups advise slowing down, questioning urgent messages, avoiding unsolicited requests for information, and verifying contacts independently to reduce the risk of generative AI-powered scams.

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