Microsoft indicates through recent research that to reduce fraud, companies should be looking at using AI to battle the new risks that bad actors pose
FRAUD & ID VERIFICATION
MICROSOFT
Microsoft indicates through recent research that to reduce fraud, companies should be looking at using AI to battle the new risks that bad actors pose
The 2025 Microsoft Digital Defense Report highlights a critical era in cybersecurity where digital transformation and AI acceleration have created a volatile threat environment. As fintechs continue to propel forward with identity and access management at the forefront of their strategy, cyber threats have become more prevalent than ever. Cyber threats are transitioning from technical business hurdles to societal risks that challenge economic stability in financial services. The report identifies that while traditional perimeter defences are no longer sufficient, AI is both a defensive necessity and a primary target for adversaries using techniques like prompt injection.
“ As digital transformation accelerates, supercharged by AI, cyber threats increasingly challenge economic stability and individual safety,” says Amy Hogan-Burney and Igor Tsyganskiy. Most cyberattacks are now financially motivated rather than driven by espionage, with data exfiltration
“ As digital transformation accelerates, supercharged by AI, cyber threats increasingly challenge economic stability and individual safety”
Amy Hogan-Burne and Igor Tsyganskiy Microsoft
appearing in 82 % of observed ransomware incidents.
Identity remains the top attack vector, forcing a shift towards phishingresistant multifactor authentication( MFA) and zero trust principles. Geopolitical tensions are fuelling statesponsored activity, particularly from Russia, China, Iran and North Korea – all of which are increasingly utilising the cybercriminal ecosystem for scale. The report advocates for international collaboration, regulatory harmonisation and“ resilience by design” to secure critical infrastructure. Ultimately, the report serves as a call to mobilise against a rising tide of threats through innovation and partnership.
114 May 2026