Cyber-enabled fraud has emerged as a widespread threat, with artificial intelligence, geopolitical fragmentation, and a sharp rise in cybercrime rapidly reshaping the global cyber risk landscape, according to a report by the World Economic Forum, titled ‘Global Cybersecurity Outlook 2026.’

The report, while highlighting on how AI is supercharging both offensive and defensive capabilities, also elaborated on the growing societal and economic impact of fraud as it spreads across regions and sectors. Geopolitical fragmentation further fuels these risks, thereby reshaping cybersecurity strategies and widening preparedness gaps across regions.

The new findings point to the fact that cyber resilience can no longer be approached as a technical function alone but as a strategic requirement that underpins economic stability, national resilience and public trust.

Here are some key findings:       

• AI is rapidly amplifying vulnerabilities: 87% of cybersecurity leaders report an increase in AI-related threats. At the same time, 94% expect AI to be the single most consequential force shaping cybersecurity in 2026.

• Fraud has overtaken ransomware as the top threat: 73% of respondents, across all regions, were or knew someone personally affected by cyber-enabled fraud in 2025.

• Geopolitics is reshaping cyber posture: 64% of organisations now factor geopolitical attacks into their risk strategies, yet only 31% are confident in their national preparedness. Meanwhile, 66% of the survey participants said that their organisation’s cybersecurity strategy have evolved because of geopolitical volatility, up from 59% in 2025.

• Supply chains are a growing systemic risk: 65% of large organisations cite third-party exposure as their biggest barrier to resilience, up from 54% last year.

• Cyber inequity is deepening: Smaller organizations are twice as likely to report insufficient resilience, with critical skills gaps cited by 85% of those affected. Regional disparities are especially pronounced in Latin America and sub-Saharan Africa, where only 56% and 54% of respondents, respectively, expressed confidence in meeting their cybersecurity goals.

Jeremy Jurgens, Managing Director, World Economic Forum, said as cyber risks become more interconnected and consequential, cyber-enabled fraud has emerged as one of the most disruptive forces in the digital economy, undermining trust, distorting markets and directly affecting people’s lives. “The challenge for leaders is no longer just understanding the threat but acting collectively to stay ahead of it. Building meaningful cyber resilience will require coordinated action across governments, businesses and technology providers to protect trust and stability in an increasingly AI-driven world,” he said.

Addressing the practical challenges of AI adoption in cybersecurity, organisations consistently identify insufficient knowledge and/or skills (54%) to deploy AI for cybersecurity, the need for human oversight (41%) and uncertainty about risk (39%) as the main hurdles. These findings indicate that trust is still a barrier to widespread AI adoption.

“Criminals are always willing to use all possible ways to get access to value, much of which is contained in the cyber infrastructure. Consequently, to stay ahead, those of us who defend must use every tool at our disposal – which now includes agentic AI,” said Arvind Krishna, Chief Executive Officer, IBM.

The gap between highly resilient organisations and those falling behind remains stark, with skills shortages and resource constraints amplifying systemic risk. Meanwhile, global supply chains have become more interconnected and opaque, turning third-party dependencies into systemic vulnerabilities. These dynamics are converging at a moment when inequalities in cyber capabilities are widening, leaving smaller organisations and emerging economies disproportionately exposed.

An example of such exposure to cyberattacks was in 2025, where, in the United Kingdom alone, prominent retailers such as Marks & Spencer, Harrods and Co-op all suffered major operational disruptions and data losses due to ransomware attacks. These incidents underscore that, despite expressing growing confidence in cyber resilience, organisations are still facing major operational and reputational impacts from adversaries that are adapting rapidly.

“The weaponisation of AI, persistent geopolitical friction and systemic supply chain risks are upending traditional cyber defences. For C-suite leaders, the imperative is clear; they must pivot from traditional cyber protection to cyber defence powered by advanced and agentic AI to be resilient against AI-driven threat actors," said Paolo Dal Cin, global lead, Accenture Cybersecurity.