Experian’s 2026 U.S. Identity & Fraud Report reveals that the integration of artificial intelligence by malicious actors is escalating digital deception and complicating identity verification across industries.
Digital fraud has evolved from isolated incidents into pervasive multi-channel threats, spanning phishing messages, fraudulent websites, altered documents, and deepfake media. According to the report, 60% of consumers are aware of AI-generated images and videos, 53% recognize AI-driven phishing, and 47% have encountered deepfake voice impersonation. Nearly half of surveyed consumers feel increasingly targeted by cyber threats compared to the previous year, highlighting mounting concerns over financial losses and compromised digital accounts.
The proliferation of sophisticated scams has heightened the demand for robust digital identity verification, with 71% of consumers emphasizing the importance of accurate online recognition. Enterprises are deploying layered security frameworks that incorporate behavioral biometrics—which make 83% of consumers feel secure—alongside physical biometrics, banking app authentication, and passwordless logins. Furthermore, 84% of consumers express willingness to undergo additional authentication checks when such measures demonstrably prevent fraudulent activity.
Organizations are increasingly turning to automation and machine learning to counter evolving threats, with 80% of U.S. businesses utilizing machine learning or generative AI for fraud management. However, this technological adoption is mutual, as malicious actors leverage similar tools to execute automated bot attacks, document forgery, and synthetic identity creation. Consumer-reported account openings involving AI chatbots rose to 27% in 2026, up from 16% in the previous year, pointing to new attack vectors involving autonomous agents.
“AI is transforming digital interactions in ways that are creating both exciting opportunities and new risks,” said Kathleen Peters, Chief Innovation Officer at Experian.
“As we move toward a human-not-present era where consumers increasingly rely on AI to help make decisions on their behalf, the organizations that will succeed will be the ones that make trust visible. Establishing identity and trust, whether for a person or an AI agent, is essential to every digital interaction,„ Peters added.