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Experian's 12th annual Data Breach Industry Forecast warns that data breaches will continue unabated in 2025, with AI emerging as a dominant force in both cyberattacks and defenses.

Michael Bruemmer, vice president of global data breach resolution at Experian, points out that while 2024 was marked by supply chain breaches and ransomware, the coming year will see AI playing a pivotal role. Hackers are leveraging AI for phishing, password cracking, malware creation, and deepfakes, prompting organizations to increase investments in cybersecurity. Jim Steven, Experian’s head of crisis and data response services, adds that ransomware attacks will grow even more sophisticated with AI's help, and cybercriminals will escalate risks for higher rewards, including using consumer data to tarnish reputations.

The report outlines five key predictions for 2025, emphasizing the evolving and complex nature of cyber threats. Among these, the FBI predicts a surge in cybercrimes committed by teenagers, with fraudsters recruiting young offenders via gaming and social media platforms. Additionally, insider fraud may rise as employees misuse their AI training for malicious purposes. A particularly alarming prediction is the potential for attacks targeting the power infrastructure supporting cloud systems, threatening national security. Even hackers are turning against each other, deploying sophisticated malware for financial or political motives. Lastly, Experian foresees the replacement of traditional identification systems with dynamic, AI-powered credentials, as fraudsters exploit obsolete encryption methods to create undetectable fake identities.

These predictions underscore the urgent need for businesses and individuals to remain vigilant and proactive. With AI transforming the cyber landscape, organizations must prioritize advanced security measures, continuous employee training, and robust response strategies to mitigate the ever-evolving risks. As cybercriminals grow bolder and more sophisticated, staying one step ahead is crucial to safeguarding data and reputations in the digital age.

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