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What does 2026 have in store for business fraud? To fully answer this, an assessment of developments and trends is essential. To understand more, Digital Journal spoke with Experian’s Chief Innovation Officer from its Fraud & Identity business – Kathleen Peters, who works for Experian North America.
Digital Journal: Experian just launched its 2026 Future of Fraud Forecast. What can we expect in 2026?
Kathleen Peters: Our 2026 predictions show just how fast fraud is evolving. We’re seeing a shift from human-driven scams to automated attacks that are powered by AI. AI’s role in fraud has been a hot topic for years at industry events, but agentic AI is now taking center stage, and for good reason. These autonomous agents can initiate transactions and make decisions without direct human oversight, which raises serious questions about liability and intent. This will remain a key area of focus well into 2026 and beyond.
Experian’s latest data shows 72% of business leaders expect AI-generated fraud and deepfakes to be a major challenge by 2026. Their concerns are well-founded. Deepfake technology is moving into the workplace, creating scenarios where employers could unknowingly onboard someone who looks and sounds real on video but isn’t who they claim to be. This is just one example of how deepfakes can disrupt business operations and why identity verification must evolve to keep pace with these emerging threats.
DJ: Why does agentic AI pose such a significant fraud risk?
Peters: With agentic AI, fraudsters can run fraud attacks without human intervention, adapt in real time, and spread potentially faster than businesses can respond. It introduces autonomy into digital interactions so agents can make decisions, initiate transactions, and interact with other agents without oversight. That’s efficient, but it creates blind spots. When machines talk to machines, who owns the risk? What permissions do they have, and who are they acting for? As fraud accelerates with agentic AI use, a breaking point will likely eventually be reached.
Businesses will need new frameworks for monitoring intent, verifying identity, and assigning liability in a world where machines act on behalf of people. Ultimately, this is both a technical issue and a governance issue. We predict major conversations around regulation and accountability as agentic AI becomes even more mainstream. Businesses will need to leverage solutions and tools that help them navigate these considerations and decisions. For example, Experian’s Ascend Platform is designed to provide governance and orchestrate agentic AI processes, helping businesses uphold strict data privacy standards and deliver secure, trusted experiences for their customers.
DJ: Tell us more about the different fraud threats you’re seeing on the horizon
Peters: Smart home devices are a great example of how convenience can create new vulnerabilities. When your locks, thermostat, and even appliances are all connected, fraudsters see opportunity. It’s not just about stealing data, these devices can also be used to monitor household activity or even take control of physical access points. As adoption grows, we expect to see new forms of fraud that turn everyday tech into a security threat.
Website cloning is another area of concern. Fraudsters can replicate legitimate sites in minutes, tricking consumers into sharing credentials or payment details. Even after takedown efforts, these spoofed domains often resurface, creating a frustrating cycle. These scams don’t just steal money. These scams fuel a variety of fraud including identity theft, synthetic identities and credit card fraud.
Finally, there’s the emotional side of fraud. AI-powered bots that sound human and mimic empathy will make romance scams and social engineering far more convincing. These bots will build trust over time and manipulate victims without a human behind the keyboard. That’s a big shift that leaves consumers more vulnerable than ever.
DJ: You’ve mentioned a variety of different fraud schemes. What common thread ties these risks together?
Peters: The common thread is trust and how easily it can be manipulated in a digital-first world. These schemes exploit the assumption that what we see online is real. When that trust is broken, the impact goes beyond financial loss and erodes confidence in digital interactions altogether. People want to feel safe when they are engaging online. Experian data shows that over 80% of people expect companies to act on security or privacy concerns and half want stronger online safeguards. That means companies must stay up-to-date on current fraud threats, anticipate what’s ahead, and proactively implement solutions that protect consumers. These measures help reinforce confidence in digital interactions while keeping experiences seamless and secure.
DJ: With fraud losses continuing to rise year over year, what role does AI-powered fraud prevention play in helping businesses keep pace with these evolving threats?
Peters: While AI-powered fraud is a growing threat for businesses, it’s also an opportunity to fight fire with fire and use the same technology to counter those attacks. AI brings the ability to analyze massive amounts of data in real time, detect patterns, and adapt as fraud tactics evolve. That’s critical when you’re dealing with fraud that is constantly shifting and becoming more sophisticated.
Businesses need to harness the power of differentiated data and advanced analytics, including behavioral signals, to monitor and identify different types of fraud so they can treat them properly. The more data, advanced analytics and insights a business has, the more quickly and effectively they can act. As fraud accelerates, prevention needs to be just as intelligent and proactive. AI provides that edge, but it works best when paired with a trusted partner who can assess current strategies, identify gaps, and implement solutions that protect both businesses and consumers.