A recent report shows that AI fraud, such as deepfake social engineering, is increasing sharply. Only seven percent of organizations say they are ready to detect and prevent these threats.
The recent study by the Association of Certified Fraud Examiners (ACFE) and SAS shows that criminals are increasingly using AI for social engineering and digital forgeries. Organizations are struggling with the rapid developments and the pace of fraud threats. The report gathered input from 713 fraud fighters worldwide, from various sectors such as government, banking, insurance, and technology.
“The data paints a worrying picture. Fraud is evolving faster than most organizations are able to protect themselves,” says John Gill, J.D., CFE, President of the ACFE.
Increase in AI-driven fraud
According to the research, there is a clear growth in AI-related forms of fraud. For instance, 77 percent of respondents report an increase in deepfake social engineering over the past two years. Document fraud using generative AI and digital injections via deepfakes are also increasing sharply, by 75 and 72 percent respectively. For the next two years, 55 percent expect a further strong increase in these methods.
The government and public sector (26%) and the financial sector (23%) are hit the hardest. Other sectors such as manufacturing, technology, and healthcare are also seeing significant increases in AI fraud. This broad impact emphasizes that no organization is immune to these risks.
Fraud prevention
A quarter of organizations now apply AI and machine learning in fraud prevention, an increase of 18 percent compared to 2024. Another 28 percent plan implementation by 2028. This growth is necessary to close the gap with criminals, who are not hindered by governance or budgetary constraints.
“AI-driven threats are not the future; they are already here and are accelerating rapidly. Organizations that do not better secure themselves against AI fraud risks will become increasingly larger targets,” says Gill.