Experian says fraud losses are accelerating rapidly as artificial intelligence reshapes how scams are executed, warning that 2026 could mark a tipping point for AI-driven financial crime.
In a new outlook drawing on Federal Trade Commission and Experian data, the credit reporting and analytics firm says US consumers lost more than $12.5 billion to fraud in 2024, while nearly 60% of companies reported higher fraud losses from 2024 to 2025.
Experian warns that the next wave of fraud will be powered by agentic and generative AI systems that scale deception faster than traditional defenses can keep up.
Experian says one of the most disruptive shifts will come from machine-to-machine fraud, as autonomous AI agents increasingly initiate transactions without clear accountability.
“As organizations race to leverage agentic AI, the sheer volume of players entering the space will make fraud inevitable and impossible to ignore. Fraudsters will exploit agentic AI to commit new levels of digital fraud… Experian predicts fraud will reach a tipping point that will spark major conversations and decisions around liability, regulation and the role of agentic AI in shaping responsible digital commerce.”
The firm also flagged a sharp rise in employment fraud, as deepfake candidates generated by AI pass remote interviews and gain access to corporate systems. Experian says hyper-tailored resumes and real-time deepfake video tools will allow bad actors to impersonate legitimate hires, forcing employers to rethink identity verification in hiring.
Consumer-facing risks are expanding as well. Experian warns that smart homes are becoming new targets for fraud, with connected devices offering fresh entry points for ransomware, account takeovers, and data theft. At the same time, AI-powered website cloning is overwhelming fraud teams, as spoofed domains resurface repeatedly even after takedown efforts, fueling credential theft and financial fraud.
Perhaps most concerning, Experian says emotionally intelligent AI bots will soon run sophisticated scams without human operators, scaling romance fraud and family-emergency schemes with unprecedented realism.
“Bots will break hearts and bank accounts: Emotionally intelligent bots powered by GenAI will carry out complex scams, like romance fraud and relative-in-need scams, without a human behind the keyboard. These bots will respond convincingly, build trust over time, and manipulate victims with precision and emotion. As they become harder to distinguish from real people and good bots, Experian predicts fraud will scale faster and become more financially and psychologically damaging.”
Says Kathleen Peters, chief innovation officer, Fraud & Identity at Experian North America,
“Technology is accelerating the evolution of fraud, making it more sophisticated and harder to detect. Businesses need actionable insights to stay ahead of these threats. By combining differentiated data with advanced analytics and cutting-edge technology, businesses can strengthen fraud defenses, safeguard consumers, and deliver secure, seamless experiences.”
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