How AI Is Changing the Fight Against Financial Fraud
96Financial institutions are using advanced AI technology to fight fraud, but at the same time, criminals are weaponizing the same tools against them. This paradox is a key theme in Experian’s 2026 Future of Fraud Forecast. The report highlights a growing tension: AI can help prevent fraud, yet fraudsters are also exploiting it to launch faster and more sophisticated attacks.
The Rising Cost of Fraud and AI’s Role in Prevention
In 2024, consumers lost over US$12.5 billion to fraud, according to FTC data. Meanwhile, Experian’s own figures show that nearly 60% of companies faced increased fraud losses from 2024 to 2025. Despite this, Experian’s fraud prevention solutions helped clients save an estimated US$19 billion globally in 2025. This demonstrates how vital AI-powered defenses have become to stay ahead of increasingly complex threats.
However, the report emphasizes that AI’s speed and autonomy are also being exploited by fraudsters. As organizations adopt AI agents capable of making decisions on their own, criminals are doing the same. This creates what Experian calls “machine-to-machine mayhem,” where AI systems interact with each other at a scale and pace impossible for humans to control.
The Challenge of Liability in Autonomous AI Transactions
A major concern highlighted in the forecast is the unclear responsibility when AI agents conduct transactions that turn out to be fraudulent. If an AI makes a decision that leads to a scam, it’s not always clear who is accountable. This lack of liability complicates efforts to regulate and defend against AI-driven fraud.
Kathleen Peters, Experian’s Chief Innovation Officer for Fraud and Identity, explains that technology is evolving faster than regulations. She notes that combining diverse data with advanced analytics can strengthen defenses, but the issue of liability remains unresolved. The industry is expected to have to confront these questions more openly in 2026, as AI becomes central to commerce and fraud prevention.
Some companies are already taking steps to limit risks. For example, Amazon has blocked third-party AI agents from browsing and transacting on its platform, citing security and privacy concerns. These preemptive moves show how serious the industry is about managing AI’s risks while harnessing its power.
Additional Threats for Financial Institutions in 2026
The forecast also points to other emerging threats beyond AI-driven fraud. One major concern is deepfake technology, which can produce realistic fake videos and documents. These tools could be used to infiltrate remote workforces, with fraudsters creating convincing fake CVs or video interviews to gain access to sensitive systems.
Experian warns that bad actors may use generative AI to craft tailored resumes and convincing deepfake videos that can pass interviews. This could lead to organizations unknowingly onboarding individuals who are not who they claim to be, granting cybercriminals access to critical internal systems.
In 2025, government agencies like the FBI and Department of Justice issued warnings about North Korean operatives using such deepfake techniques for malicious purposes. As these tools become more accessible and sophisticated, financial institutions will need to strengthen their identity verification processes to stay protected.
Overall, the forecast makes it clear that AI is a double-edged sword. While it offers powerful ways to combat fraud, it also opens new avenues for cybercriminals. Staying ahead will require constant innovation, clear regulation, and careful management of AI’s capabilities and risks.
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