The growing sophistication of cybercriminals presents a grave danger to the private funds industry heading into 2026, with the potential for breaches utilizing highly convincing simulacra of real persons generated with the help of artificial intelligence (AI) increasing constantly. Bad actors have grown savvy at impersonating executive personnel and members of deal teams and using AI-based ruses to authorize transactions and payments under false pretenses. Given the sensitivity of the personal and financial data investors trust fund managers to keep safe, they have never been at greater risk. The SEC’s amendments to Regulation S‑P underscore the issue’s urgency. Fortunately, the bad actors are not unstoppable, and there are practical steps fund managers can take to keep customer data and assets safe and avoid regulatory complications. Those themes were discussed in a Manhattan Alternative Investment Network (MAIN) webinar entitled, “Cyber, AI & Compliance Risks – What to Look for in 2026,” and moderated by Robert Akeson, managing director at Riverside Management Group and president of MAIN. This article summarizes key takeaways from the webinar, which featured Michael Brice, founder and president of BW Cyber, and Michael Durrette, chief revenue officer for Compliance Risk Concepts. For coverage of a prior MAIN event, see “Best Practices for Engaging Fund Administrators” (Nov. 20, 2025).