Visa threats report: As network security strengthens, criminals accelerate shift to AI-enabled social engineering

⦿ Executive Snapshot

What: Visa's Spring 2026 Biannual Threats Report reveals a significant shift in consumer fraud, with scams becoming the fastest-growing source of harm as criminals leverage AI and social engineering.
Who: Visa, a leader in digital payments, and its Chief Risk and Client Services Officer, Paul Fabara, along with SVP Michael Jabbara.
Why it matters: As payment security improves, fraud tactics are evolving, highlighting the need for continuous innovation and collaboration within the payments ecosystem to combat new threats.

Visa identified nearly $1 billion in scam-related activity from July to December 2025, marking scams as the largest category of consumer payment fraud.
Fraud involving device tokens decreased by 9.6% from July to December 2025 compared to the same period in 2024, indicating improved network-level protections.
AI is being utilized by fraudsters to create more convincing scams and by defenders to detect attacks earlier in the transaction lifecycle.
Global ransomware activity rose by 26% in the same period; however, only 23% of victims paid ransoms, the lowest rate on record.
The report emphasizes the need for intelligence-driven defenses and coordinated action to counteract the evolving fraud landscape.

The report highlights a historical trend where as payment network security strengthens, criminals adapt by shifting focus from technical exploits to manipulating human behavior through social engineering.
The integration of AI in both fraud and defense mechanisms represents a significant evolution in how fraud is executed and countered, reflecting broader technological advancements in the financial sector.

The immediate consequence is a rising urgency for payment providers and financial institutions to innovate fraud detection and prevention strategies to keep pace with evolving threats.
Long-term operational implications may include increased investment in AI technologies and collaborative frameworks across banks, merchants, and policymakers to enhance overall payment security.

A potential risk is the regulatory landscape surrounding AI and its application in financial services, which may evolve as fraud tactics become more sophisticated.
Another risk involves the dependence on consumer education and awareness to prevent social engineering scams, which may not be uniformly effective across different demographics.

Future developments to monitor include the rollout of new AI-driven fraud detection systems and the effectiveness of collaborative initiatives across the payments ecosystem.
Timelines for anticipated regulatory changes regarding AI in finance could signal shifts in how financial institutions approach fraud prevention and consumer protection.