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Bad Actors Are Already Piloting the Next Evolution of AI

By Wesley Grant
March 25, 2026
in Analysts Coverage, Artificial Intelligence, Fraud & Security
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Double exposure of a caucasian man and Virtual reality VR headset is presumably a gamer or a hacker cracking the code into a secure network or server, with lines of code in green

Artificial intelligence has rapidly stretched the limits of the traditional computing model, as it demands substantial infrastructure and resources to operate.

A potential solution lies in quantum computing, which leverages the principles of quantum mechanics to move beyond conventional binary and linear processing. Shifting AI to a quantum computing foundation could theoretically enable models to improve efficiency while consuming fewer resources.

While quantum AI may still seem like a distant prospect for organizations that are just beginning to integrate generative and agentic AI, there are signs that cybercriminals are already experimenting with the next level of artificial intelligence.

According to data from the Association of Certified Fraud Examiners and SAS, most respondents expect quantum AI to significantly impact fraud prevention by 2030, and roughly 10% report that it is already having an effect.

Supercharging the Deepfake Threat

Equally concerning, the study found that bad actors have increased their use of AI across nearly every aspect of their operations, from consumer scams to document forgery. However, deepfake-driven social engineering has seen the sharpest rise, with roughly three-quarters of respondents reporting an uptick over the past two years.

While early deepfakes were often easy to identify, more advanced AI models have made them a threat that can no longer be dismissed. The AI Incident Database reinforced these concerns, documenting more than 100 distinct deepfake incidents between November 2025 and January 2026.

A Perilous Situation

These emerging threats are straining the capabilities of modern cybersecurity systems. For financial institutions in particular—bound by strict compliance constraints and high customer expectations—implementing new technologies is often a complex and resource-intensive process.

This has created a precarious situation where cybercriminals are evolving in lockstep with rapidly advancing technologies, while many banks are struggling to keep pace. According to the ACFE study, only 7% of respondents said their organization was more than moderately prepared to detect or prevent AI-powered fraud.

With quantum computing potentially entering the equation, this gap could quickly become catastrophic.

“We’re close to where quantum computing is going to break encryption,” Tracy Goldberg, Director of Cybersecurity at Javelin Strategy & Research told PaymentsJournal. “This goes back to the whole risk that we see with the way we’re securing data today. Data is tokenized or encrypted; card numbers are tokenized as they’re transmitted as this is a requirement for PCI compliance.”

“If quantum computing is able to break that encryption, then we’re ultimately sending card data in the clear and it’s setting us back 20 years,” she said. “Tokenization will mean nothing.”

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Tags: AIAI AgentsAI FraudArtificial IntelligenceDeepfake AI FraudDeepfakesFraudQuantum AIQuantum Computing

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