In today's digital landscape, the rise of deepfake technology presents a significant threat to online security. Deepfakes - fabricated videos, images, or audio clips generated using artificial intelligence, are becoming increasingly convincing. These ‘synthetic’ media files manipulate existing content by replacing faces or voices with remarkably realistic digital alternatives, posing risks that extend far beyond misinformation and causing significant damage to individuals and businesses alike.
Concerningly, there is a lack of recognition of how much of a threat deepfakes pose due to a perception that it remains an ‘emerging’ issue. Deepfakes are not an emerging problem or one confined to social media and entertainment; it has become a pressing issue in the corporate world. Think of how further widespread and damaging the “Hey Mum/Dad” text scam may have been had the content been a deepfake phone call rather than a text message.
The Challenge of Detection
One of the most alarming aspects of deepfakes is the difficulty in identifying them. The technology used to create deepfakes can produce virtually undetectable media for cybersecurity experts, with few detection models able to successfully identify a deepfake consistently. This accessibility to advanced technology has quickly taken deepfakes from mere novelties to a formidable cybercrime tool used to commit fraud, extortion, and reputation damage, even disrupting national security with unprecedented ease.
Risks to Business
Deepfakes have become a potent addition to cybercriminals' toolkits, surpassing traditional social engineering attacks like phishing. As technology advances, concerns escalate, with deepfakes capable of fabricating scenarios that can result in substantial financial losses and reputational damage. They can convincingly impersonate executives, alter financial statements, disseminate false investment opportunities, facilitate unauthorised fund transfers and manipulate investors.
Recent incidents, such as the elaborate scam targeting a multinational firm in Hong Kong, illustrate the gravity of the threat. In this case, fraudsters used deepfake technology to impersonate company executives in a video conference call, ultimately defrauding the company of $39 million. The finance worker’s suspicions over an email purportedly from the company's UK-based Chief Financial Officer were subdued by a deepfake video call with the CFO and other members of staff, all of whom turned out to be fake.
Mitigating the Risks
As deepfake technology becomes increasingly sophisticated and accessible, businesses find themselves at greater risk of a successful attack.
Addressing the risks posed by deepfake cyber-attacks requires a multifaceted approach and collaboration between the public and private sectors. Information sharing, coordination of response efforts, and the development of regulatory frameworks are essential in safeguarding businesses and individuals against financial risks posed by deepfakes.
For businesses, implementing robust cybersecurity measures, such as advanced threat detection systems and secure authentication protocols, can bolster defences against fraudulent activities. Employee awareness, training, and fostering a culture of scepticism towards online content are key in mitigating the impact of deepfake attacks.
As deepfake technology continues to evolve, businesses and individuals must remain vigilant and proactive in defending against financial risks posed by synthetic media. By understanding the potential ramifications of deepfake attacks and implementing comprehensive risk management strategies, businesses can safeguard their financial interests in an increasingly digital world.
We are ready to assist you in navigating cybersecurity complexities and safeguarding your business from deepfakes. For more information on our cybersecurity capability, please get in touch with your Prosperity Adviser.
