Fighting AI-powered fraud requires faster cybersecurity innovation

The article was published in Delfi Ärileht on June 8.

Cyber fraud is no longer limited to poorly written phishing emails or suspicious phone calls. Powered by artificial intelligence, data breaches, and automated tools, scams are becoming increasingly personalised, convincing, and difficult to detect. This affects individuals, businesses, and the public sector alike, placing growing pressure on society’s overall digital security. As cyber threats evolve at an unprecedented pace, it is more important than ever that new security solutions move from concept to real-world deployment faster than before. To support this, Tehnopol and the Estonian Information System Authority (RIA) have launched the Cyber Accelerator, which is open for applications until 21 June.

According to Jaagup Toompuu, Head of the Fraud Prevention and Resolution Centre at the Police and Border Guard Board, cyber fraud schemes have become increasingly sophisticated and technologically advanced.

“The most damaging scams continue to be fraudulent phone calls, where victims are convinced that they have fallen victim to fraud and must secretly cooperate with the police to ‘protect’ their money. Investment scams remain another major concern. These schemes promise quick profits and wealth, but scammers typically do not initiate contact themselves. Instead, victims are drawn to fake websites or advertisements created by fraudsters and voluntarily leave their contact information. This makes them more vulnerable, as they have already demonstrated an interest in the subject and require less persuasion.”

Toompuu notes that cybercrime has effectively become a service industry, where every stage of the attack chain can be purchased.

“What is particularly alarming is how quickly artificial intelligence is amplifying this ecosystem. Criminals collect information from public sources, data leaks, and the dark web, storing it in databases that are traded among cybercriminals. As a result, aspiring criminals no longer need to be experts in every aspect of cybercrime. They can simply purchase the necessary tools and services—from stolen databases and call-centre software to professional money-muling operations and money laundering services.”

Evelin Neerot, Head of Connectivity Services at Telia Estonia, agrees that AI is fundamentally changing the threat landscape by making attacks more personalised and credible.

“In our view, AI-powered phishing and fraud schemes are growing the fastest, including deepfake voice calls and highly convincing investment and identity fraud. For businesses, we are also seeing increasing risks from supply chain attacks, ransomware, and threats targeting cloud environments and identity management systems.”

A recent example is the cyber incident involving the Estonian Artists’ Association, which demonstrates how digital fraud and manipulated communication channels can impact organisations of any size or sector.

Great ideas must become real security solutions quickly

According to Anne-Liisa Elbrecht, Head of Tehnopol Startup Incubator, cyber defence solutions can no longer afford to evolve more slowly than the tools used by attackers.

“Whereas new threats and attack methods once took time to spread, today they emerge and scale rapidly. Artificial intelligence, automation, and data-driven targeting enable even less technically skilled criminals to use increasingly sophisticated tools. This creates pressure on businesses, government institutions, and individuals alike. Cybersecurity is no longer solely an IT issue—it directly affects how safely we can use digital services, manage our finances, and communicate with one another.”

For this reason, Elbrecht emphasises the importance of supporting early-stage solutions that can help prevent emerging threats or reduce their impact.

“A promising cybersecurity idea should not fail simply because a team lacks access to mentors, early customers, or development funding. The Cyber Accelerator is designed to help ideas become real-world solutions as quickly as possible—testing product-market fit, gathering feedback from industry experts, and supporting teams as they move toward their first viable product and customers. Our goal is not just to create technologically interesting solutions, but products and services that organisations can genuinely adopt and use.”

She adds that one of Tehnopol’s key strengths is its ability to bring together startups, public sector organisations, experienced technology companies, and potential customers.

“In cybersecurity, collaboration is especially critical because no single stakeholder has a complete view of the threat landscape. Governments understand societal risks and priorities, companies face real operational challenges, and startups bring speed, creativity, and a willingness to experiment. When these groups collaborate early, there is a much greater chance that solutions will move beyond the laboratory and presentation slides into actual deployment.”

Early support can make all the difference

Henrik Uustalo, CEO of Phishbite—a cybersecurity awareness training platform that originated from the Cyber Accelerator—believes early-stage support can be decisive.

“In autumn 2022, I failed a phishing simulation conducted by my employer. Around the same time, ChatGPT became publicly available, and it became clear that phishing attacks would become significantly more dangerous in the years ahead. Instead of mass emails, phishing would become personalised, context-aware, and increasingly difficult to distinguish from legitimate communication. Previously, such targeted attacks required considerable manual effort and preparation, limiting them to high-value targets. That realisation stayed with me, and six months later, when I learned about the Cyber Accelerator, I decided to apply.”

According to Uustalo, the accelerator proved instrumental both financially and strategically.

“The programme provided the funding necessary to bring our product to market. With the support received, we were able to hire a small development team and build the first version of our platform. Just as importantly, we gained access to mentors with expertise in fundraising, sales, marketing, and cybersecurity, all of which played a critical role in our growth.”

Collaboration is Estonia’s competitive advantage

Neerot highlights that one of Estonia’s greatest strengths is the close cooperation between government, the technology sector, and businesses.

“In cybersecurity, this collaboration is particularly valuable because threats evolve rapidly, and new solutions must reach the market much faster than before. The most valuable innovations are not only technically strong but also practical and easy to adopt. Solutions must be scalable, integrate seamlessly with existing systems, and meet both operational and regulatory requirements.”

She adds that Telia remains open to partnerships and pilot projects with companies developing solutions that address real cybersecurity challenges.

“Having a strong idea or innovative technology alone is not enough. What matters equally is how quickly, easily, and reliably a solution can be deployed in a real-world environment. If it helps reduce risks, accelerate incident response, or improve visibility into an organisation’s security posture, it has strong potential to succeed in the market.”

Applications open until 21 June

The Cyber Accelerator is primarily seeking solutions focused on artificial intelligence in cybersecurity, AI security, post-quantum cryptography, process automation, and threat intelligence analysis and forecasting. Particular attention will also be given to solutions aimed at preventing fraud, phishing, and social engineering attacks.

Selected teams will receive expert mentoring, practical training, and development funding of up to €60,000 to support product development and market entry.

Applications are open until 21 June, and up to six teams will be selected for the programme. Student teams, researchers, startup founders, and spin-off teams from small and medium-sized enterprises (SMEs) are encouraged to apply. The most promising ideas will have the opportunity to grow into solutions that strengthen the everyday digital security of businesses, public institutions, and individuals alike.