Global surge in AI-driven fraud and deepfake scams reported
Criminals are increasingly deploying generative AI and deepfake technology to commit tax fraud and other scams, with a 77% surge in deepfake social engineering attacks reported in 2026. The frauds cost victims millions while only 7% of organizations report being adequately prepared to detect such AI-driven attacks.
What happened
Fraudsters are increasingly using generative AI tools and deepfake technology to commit tax fraud and other scams. Deepfake social engineering saw a 77% surge in reports, with criminals impersonating company executives, fabricating celebrity endorsements, and posing as family members in distress.
Generative AI tools have made impersonating tax officials more efficient and prevalent. IBM reports that data breaches involve AI-driven attacks, with phishing and deepfakes among the most commonly cited methods.
Reported impact
Deepfake fraud is costing victims millions. Tax fraud has surged across multiple U.S. states, with Florida reporting 474,314 total fraud reports in 2024, the highest per capita rate at 2,163 per 100,000 residents.
Only 7% of anti-fraud professionals reported that their organisations are more than moderately prepared to detect or prevent AI-fuelled fraud, indicating widespread organizational unpreparedness.
Index analysis
The 2026 Anti-Fraud Technology Benchmarking Report by the Association of Certified Fraud Examiners and SAS revealed that deepfake social engineering saw the sharpest surge among fraud types. As deepfake technology becomes cheaper and easier to access, the scale of exploitation has expanded significantly.
Governance controls
Cybersecurity experts and anti-fraud professionals have emphasized awareness and scepticism as key defences against AI-driven fraud. Awareness of how deepfake scams work has been identified as critical for preventing victimization.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.