Canadians should brace for a more dangerous digital landscape in 2026, as artificial intelligence increasingly empowers cybercriminals and exposes new vulnerabilities in personal and organizational data, according to leading cybersecurity experts.
Specialists from IBM Canada, Malwarebytes, Microsoft Canada, and the University of Guelph say AI-driven scams and so-called “shadow AI” systems pose the most serious risks to online safety, privacy, and security in the year ahead.
While cyberattacks and data breaches are expected to continue, experts say evolving AI tools are making scams far more convincing and harder to detect — even for cautious users.
Hyper-Personalized AI Scams on the Rise
Dave Nelson, senior director of threat labs research and response at Malwarebytes, warned that the combination of AI and social engineering is creating what he called a “lethal weapon” for fraudsters.
He said cybercriminals are increasingly using AI to build “hyper-personalized” and “hyper-realistic” scams, drawing on personal data leaked through past breaches.
“These scams might look and sound like your child asking for money after an accident, or your partner requesting bank information because they can’t access shared notes,” Nelson said.
Similarly, John O’Brien, national security officer at Microsoft Canada, said AI-powered fraud is becoming far more effective than traditional scams.
Microsoft’s latest Digital Defence Report found that AI-driven phishing attempts are now more than four times as successful as older methods. Techniques such as deepfakes and synthetic identities are also becoming increasingly common.
Surge in Device-Code Phishing
Microsoft has also detected a sharp increase in device-code phishing — a sophisticated scam that tricks victims into entering a code on a legitimate login page, unknowingly giving attackers access to their accounts.
According to O’Brien, 93 per cent of device-code phishing incidents recorded this year occurred in the second half alone, signalling a rapidly accelerating trend.
“The best defence against fraud and digital threats is to slow down,” he said, urging Canadians to be cautious when confronted with urgent or unexpected requests.
Shadow AI Poses Major Data Risks
Beyond consumer scams, experts say organizations face a growing threat from “shadow AI” — unsanctioned or unapproved AI tools used by employees without proper oversight.
Chris Sicard, security leader at IBM Canada, said these autonomous AI systems are already increasing the risk of data breaches.
“Shadow agents will accelerate data exposure faster than we can detect it,” Sicard warned, noting that some AI tools operate independently, bypass safeguards, and access sensitive information without leaving clear audit trails.
He advised employees to avoid AI applications that lack transparent privacy policies or fall outside company-approved systems, warning that misuse could expose confidential consumer data and proprietary information.
How Canadians Can Protect Themselves
Despite the risks, experts emphasize that AI itself is not the enemy.
Ali Dehghantanha, Canada Research Chair in cybersecurity and threat intelligence at the University of Guelph, said the same AI tools used by criminals are also being deployed by banks, platforms, and security teams to detect and block attacks.
“I don’t think the answer is to scare people away from technology,” he said. “It’s less about fear and more about hygiene.”
Dehghantanha likened digital security to everyday safety habits, such as locking doors or wearing a seatbelt. Simple steps, he said, can significantly reduce risk:
- Be skeptical of urgent messages involving money, passwords, or one-time codes
- Use multi-factor authentication and unique passwords
- Limit what you share online and which apps you install
- Keep devices and software updated
- Treat your home network like a small office, securing all connected devices
“These basics won’t make anyone invincible,” he said, “but they will make you a much harder target.”
As AI-driven threats continue to evolve, experts agree that awareness, caution, and good digital habits will be critical for Canadians navigating the online world in 2026.