Deepfake scams are on the rise, particularly targeting the finance sector. Social media promotions featuring fabricated endorsements from senior finance figures are increasingly common. A Medius survey revealed that over half of finance professionals have been targeted by deepfake schemes, with 43% falling victim. These scams, which use AI to create convincing fake images, videos, and audio, pose an existential threat to organisations' financial security, with 85% of finance professionals expressing concern.
Deepfakes are used in presentation attacks, where fraudsters use masks or digital forgeries in real-time, and injection attacks, where malware is inserted into programs. A recent case saw an engineering firm lose $25 million after an employee was tricked by a deepfake CFO. The average cost of a deepfake fraud attempt is around $450,000, but losses can exceed $500,000, especially in fintech. Traditional fraud detection systems struggle to keep up with these evolving AI-driven techniques.
To combat deepfake fraud, businesses must enhance their cybersecurity measures and employee training. Financial institutions are advised to implement robust detection mechanisms and move away from reliance on legacy verification systems. Employees should be encouraged to question instructions, even from senior figures, and verify requests through multiple channels. With AI fraud losses projected to reach $40 billion in the US by 2027, proactive measures are crucial.