Digital trust under threat from advanced fraud, AI agents: BioCatch

The digital world has consumed us; “being online” is no longer optional. As such, the importance of digital trust has increased dramatically. If we are unable to trust the transactions, interactions and exchanges we have online, we have a fundamental trust problem that undermines the stability of the economy and the social fabric.

Concern is high among financial institutions in particular, as AI agents amplify the trust problem. Fraud prevention firm BioCatch’s new report on the future of digital trust shows that it is eroding much faster than institutions, governments, and technology providers can rebuild it.

According to the research, 84 percent of respondents to a survey of fraud-management, anti-money laundering (AML), and risk and compliance leaders at banks in 25 countries say that AI agents will become the industry’s greatest exploitable vulnerability in the next year. Eighty eight percent say AI has already increased the sophistication of fraud, and 72 percent “believe it will be very difficult to distinguish between legitimate AI-assisted actions and malicious or manipulated AI activity in a future where AI agents commonly initiate transactions.”

“AI is starting to reshape how customers interact with e-commerce sites and financial institutions and will change how criminals execute fraud and other financial crimes,” says BioCatch CEO Gadi Mazor in a release. “As digital interactions continue to grow faster, more automated, and increasingly driven by agents, we must move beyond static identity checks and toward a deeper and immediate understanding of behavior, intent, and trust.”

‘Full-blown global crisis’

Nasdaq’s 2026 Global Financial Crime Report estimates that $4.4 trillion in illicit funds flowed through the global financial system in 2025 alone – a 42 percent increase from 2023. “Fraud accounted for an estimated $579.4 billion of those criminal proceeds, and the actual figures are almost certainly larger,” says the Biocatch report.

“Fraud, scams, and financial crime now represent a full-blown global crisis, together operating as interconnected systems incomprehensible to legacy defenses. They undermine economies, governments, and communities of all sizes, all around the world.”

The firm says its data shows the world at a critical inflection point. Year-over-year fraud losses are increasing globally; 75 percent of respondents say that’s the case, a jump from 59 percent in 2025. And the damage has a ripple effect.

“Consumers who fall victim to fraud often lose trust in their banking institution and may decide to take their banking business to a competitor.” More than two-thirds (68 percent) of respondents believe “their organization’s approach to fraud and financial crime prevention and reimbursement has resulted in a net loss of customers.”

Yet, “the fraud of today and tomorrow is too convincing, too individually tailored, and too prevalent for consumers to reliably identify and avoid.” With the rapid adoption of generative AI tools, fraud is easier and more scalable than ever.

Innovate, invest and be transparent

Beyond the numbers, the major key takeaway is that fraud is accelerating and expanding. Generally, digital trust is under attack, and organizations must respond with a commitment to better security tools. “While those surveyed indicate their institutions are investing in new processes, tools, and technologies to fight fraud, in most cases investments to date do not appear adequate to keep pace with surging fraud attempts.”

The new threats posed by autonomous agents only widen the gap – and 80 percent of respondents say their organization has already experienced an attack carried out by an AI agent.

“To combat these evolving threats, there is a critical need for real-time intelligence sharing and greater collaboration across borders and between institutions,” says the report.

“As fraudsters continue to leverage AI and digital platforms to outpace traditional defenses, FIs must prioritize innovation, invest in behavioral and network-level intelligence, and foster a culture of transparency and rapid response to maintain consumer trust and preserve the economic stability, public confidence, and online security that trust supports.”

Article Topics

AI agents  |  AI fraud  |  behavioral biometrics  |  BioCatch  |  digital trust  |  financial crime  |  fraud prevention