AI-Powered Fraud Estimated at $40 Billion Amid Deepfake Concerns

• •AI-powered fraud is projected to cost $40 billion in the U.S. in 2026.
• •Deepfakes are being used for large-scale identity fraud and impersonation attacks.
• •Organizations are enhancing identity verification processes in response to rising deepfake threats.

The rise of AI-powered fraud, particularly through deepfake technology, is projected to cost the U.S. $40 billion in 2026. Reports from Microblink and Entrust indicate that fraudsters are leveraging advanced generative AI to create realistic synthetic content across various modalities, including text, voice, images, and video. This evolution allows for large-scale identity fraud and impersonation attacks, similar to the automation seen in phishing. The deepfake phenomenon is now a significant concern for retailers and brands, as it enables direct attacks on customers. The increasing sophistication of these attacks is prompting organizations to enhance their identity verification and authentication processes. As deepfakes become more prevalent, the need for effective detection technologies is also rising.