WEF: AI, Geopolitics Propel Cyber Fraud Risks

Cyber Threats Escalate Globally

Cyber-enabled fraud has become a pervasive global threat, rapidly altering the cybersecurity landscape. A new report from the World Economic Forum, titled ‘Global Cybersecurity Outlook 2026,’ identifies artificial intelligence, geopolitical fragmentation, and a surge in cybercrime as the primary drivers.

AI's Dual Role

The report highlights that AI is enhancing both offensive and defensive cyber capabilities. Simultaneously, the societal and economic impact of fraud is growing, with criminal activities spreading across regions and industries. Geopolitical divisions further exacerbate these risks, forcing a reevaluation of cybersecurity strategies and exposing preparedness gaps.

Resilience as a Strategic Imperative

Cyber resilience is no longer solely a technical concern. It is now recognized as a strategic requirement essential for economic stability, national security, and public trust. This shift demands a broader, more coordinated approach.

Stark Statistics Emerge

Findings reveal that 87% of cybersecurity leaders observed an increase in AI-related threats, with 94% anticipating AI to be the most significant factor shaping cybersecurity in 2026. Furthermore, 73% of respondents globally reported being personally affected by cyber-enabled fraud or knowing someone who was in 2025. Organizations are factoring geopolitical attacks into their strategies, with 64% doing so, yet only 31% feel confident in their national preparedness. Volatility has reshaped strategies for 66% of surveyed participants, up from 59% the previous year.

Third-Party Risks and Skills Gaps

Large organizations cite third-party exposure as their foremost barrier to resilience, a figure rising to 65% from 54% last year. Smaller entities face greater challenges, being twice as likely to report insufficient resilience. Critical skills gaps affect 85% of smaller organizations. Regional disparities are significant, with only 56% in Latin America and 54% in sub-Saharan Africa confident in meeting cybersecurity goals.

Collective Action Needed

Jeremy Jurgens, Managing Director at the World Economic Forum, stated that cyber-enabled fraud is one of the most disruptive forces in the digital economy, undermining trust and affecting lives. He emphasized that leaders must act collectively, with coordinated efforts from governments, businesses, and technology providers, to build meaningful cyber resilience in an AI-driven world.

Hurdles to AI Adoption

Organizations face practical challenges adopting AI for cybersecurity, including insufficient knowledge and skills (54%), the need for human oversight (41%), and uncertainty about risks (39%). These factors create trust barriers hindering widespread AI adoption. IBM CEO Arvind Krishna noted that defenders must use every tool, including agentic AI, to stay ahead of criminals exploiting cyber infrastructure for value.

Widening Gaps and Vulnerabilities

The disparity between highly resilient organizations and those lagging is stark, amplified by skills shortages and resource constraints. Interconnected global supply chains present opaque, systemic vulnerabilities through third-party dependencies. These trends widen inequalities in cyber capabilities, leaving smaller organizations and emerging economies more exposed. Recent ransomware attacks in the United Kingdom, impacting retailers like Marks & Spencer, Harrods, and Co-op, demonstrate significant operational and reputational damage despite expressed confidence in resilience.