Cybercrime,
Fraud Management & Cybercrime,
Fraud Risk Management
Synthetic Entities, AI-Driven Scams, Stablecoin Misuse Pose Key Threats in 2026
In 2025, scams leveraging artificial intelligence saw an unprecedented surge, and experts warn that these threats will further escalate in 2026, fueled by synthetic identities, the misuse of stablecoins, and deepfakes. To stay ahead of increasingly sophisticated fraud schemes, banks and lenders must enhance their data practices, reporting protocols, and regulatory frameworks, as emphasized by industry specialists during a discussion with Information Security Media Group.
Over the last year, generative AI has empowered fraudsters to launch attacks on a larger scale. Technologies like voice cloning and visual deepfakes have made it easier for scammers to target victims globally, while insufficient cryptocurrency regulations have created avenues for extensive cross-border fraud activities. The emergence of synthetic identities marks a troubling advancement in identity crime, complicating the distinction between legitimate and fraudulent operations.
Frank McKenna, chief fraud strategist at PointPredictive, highlighted the alarming use of AI and deepfakes in scams, stating that these tactics enable fraud rings to reach vast audiences. “Fraud schemes have become so sophisticated that they’re now capable of impacting a significant portion of the global population weekly,” McKenna noted.
Peter Tapling, vice chair of the Faster Payments Council, cautioned that cybercriminals are increasingly capitalizing on cryptocurrency scams. “Modern criminals have realized they don’t need to resort to traditional methods of robbery; they can now solicit funds from millions online, with a concerning success rate,” he explained.
Furthermore, Steve Lenderman, head of fraud prevention at isolved, expressed concern over the growing prevalence of synthetic identities, which obscure the reality of identity theft. “With synthetic identities, we face a new level of chaos in fraud prevention,” Lenderman asserted, highlighting the complexities that arise when fake entities engage in financial transactions.
The panel discussion also delved into several critical topics, including the rise of synthetic entity fraud in commercial sectors, the exploitation of stablecoins and cryptocurrencies for illicit activities, and the role of AI in facilitating deepfakes that drive large-scale scams.
McKenna has provided strategic guidance to over 200 financial institutions globally, helping them reduce fraud risk. He shares insights through his blog, FrankonFraud.com. Tapling, the founder of PTap Advisory LLC, has extensive experience in advising organizations on technology integration for business strategy and previously led Authentify, a company that pioneered innovative authentication methods. Lenderman, with over 25 years in fraud prevention, applies AI to combat financial crimes and ensure regulatory compliance, solidifying his position as an industry authority.
