New Delhi | Cyber-enabled fraud has overtaken ransomware to become the most significant cybersecurity concern for businesses worldwide, reflecting a rapidly shifting threat landscape shaped by artificial intelligence, geopolitical tensions and increasingly complex digital supply chains, according to the World Economic Forum (WEF).
In its Global Cybersecurity Outlook 2026, prepared in collaboration with global consultancy Accenture, the WEF said that 73% of chief executives and chief information security officers surveyed reported that they, or someone within their professional or personal network, had been affected by cyber-enabled fraud over the past year. The report was released ahead of the WEF’s annual meeting in Davos.
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While ransomware continues to pose serious operational risks for technology and security teams, cyber fraud — encompassing phishing, payment manipulation and identity theft — has moved to the top of the agenda for business leaders. The shift reflects the growing scale, sophistication and direct financial impact of fraud-driven cybercrime.
Fraud eclipses traditional cyber threats
The report noted that cyber fraud has become one of the most disruptive forces in the digital economy, undermining trust in online systems, distorting markets and directly affecting organisations and individuals. Unlike ransomware, which often causes immediate operational disruption, fraud-driven attacks are frequently less visible but more pervasive.
Among respondents, 62% reported being affected by phishing, smishing and vishing attacks, while 37% cited invoice or payment fraud. Identity theft was flagged by 32%, and insider-related or employee fraud by 20%. Impersonation scams, romance fraud, and investment or cryptocurrency-related fraud were also identified as rising risks.
The findings suggest that cybercrime is increasingly exploiting human behaviour and financial processes rather than focusing solely on technical vulnerabilities or system breaches.
AI reshaping threats and defences
Artificial intelligence has emerged as a central force influencing both cyber risks and defensive strategies. As many as 94% of respondents said AI would be the most significant driver of change in cybersecurity in 2026.
The report observed a sharp increase in organisations assessing the security of AI tools, with the proportion nearly doubling over the past year. However, the rapid adoption of AI has also expanded the attack surface. About 87% of respondents identified AI-related vulnerabilities as the fastest-growing cyber risk, followed closely by cyber fraud and phishing.
The growing use of generative AI has also altered leadership concerns. Data leaks linked to AI systems now outweigh fears about adversarial or malicious use of AI — a reversal from previous years, when offensive capabilities dominated risk perceptions.
Indian perspective and research warnings
In emerging digital economies such as India, the impact of cyber fraud is becoming more pronounced. Studies by the Future Crime Research Foundation (FCRF) have highlighted that the rapid expansion of digital payments, social media platforms and mobile applications has coincided with a rise in organised and interstate cyber fraud networks.
FCRF analyses indicate that cybercrime is no longer driven solely by technical loopholes but increasingly relies on social engineering, psychological manipulation and the complexity of financial workflows. The foundation has cautioned that without stronger institutional awareness, coordinated response mechanisms and public-private collaboration, economic losses and erosion of trust in digital systems could intensify.
Geopolitics compounds cyber risk
The WEF report also pointed to geopolitics as a growing factor in cyber risk management. About 64% of organisations said they were factoring in threats such as cyber espionage, sabotage and disruption of critical infrastructure while shaping their security strategies.
Larger enterprises, in particular, have adjusted their cybersecurity postures to reflect geopolitical volatility, including risks linked to political conflict, sanctions and strategic competition. Such dynamics, the report said, are increasingly influencing the global cyber threat environment.
At the same time, confidence in national cyber preparedness appears to be weakening. Nearly one-third of respondents expressed low confidence in their country’s ability to respond effectively to major cyber incidents, though trust levels varied significantly across regions.
Need for coordinated response
The WEF underscored that tackling cyber fraud requires coordinated action among governments, businesses, research institutions and technology providers. Given the interconnected nature of digital systems, fragmented or isolated responses are unlikely to succeed.
The report argued that cybersecurity should be viewed not merely as a technical function but as a strategic business and economic imperative. Beyond preventing losses, strong cyber resilience was described as essential for sustaining innovation, competitiveness and long-term economic stability.
As cyber fraud becomes more widespread and less visible than high-profile ransomware attacks, organisations are being urged to strengthen controls around identity systems, payment mechanisms and human-centric vulnerabilities, while updating governance frameworks to keep pace with rapidly evolving technologies.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
