Artificial intelligence (AI) and machine learning (ML) have led to fast technological progress. Unfortunately, they also help criminals access software for creating deepfakes. Deepfakes impact just about every industry, from finance and healthcare to politics and entertainment.
Whether you are a consumer or a business owner, it is essential to gain a comprehensive understanding of deepfakes. Recognizing the indicators of digital deception is vital. Additionally, it is crucial to be informed about the appropriate steps to take if you suspect you are a victim of fraud.
Deepfakes are fake videos, images, audio recordings, documents and other types of synthetic media. Deepfakes look real and original, but they use AI, machine learning and other technologies to make very realistic media.
Software creates deepfakes by manipulating existing media. Neural networks and generative adversarial networks (GANs) are common method used to generate deepfakes.
These machine learning tools teach computers to act like the human brain. They analyze data and improve it. Eventually, the computer cannot tell the difference between real data and fake data. Other techniques for creating deepfakes include video synthesis, face swapping and lip syncing.
Some people use deepfakes for good, however, others use them to spread false information. They can also illegally show someone’s image. Bad actors may use deepfakes to steal money or sensitive information.
Criminals also use AI voice cloning to make deepfakes. They use these deepfakes for phone scams and online romance scams.
Deepfakes are designed to look and sound like the real thing, but they often come with certain red flags that can help alert you about a potential scam:
Many people think of deepfakes as celebrity face swaps. However, they are also used for online lies and to sway public opinion.
Deepfake fraud is often used to make fake videos. These forgeries can help steal from banks and other financial companies. Criminals leverage deepfakes to commit financial fraud through various means, such as impersonating account owners or tricking people into sending money or sharing account information.
Deepfake fraud can target any industry, but financial institutions and their customers are at greater risk of falling victim to scams involving AI-generated content, such as image manipulation, digital identity theft and more.
A recent study found that bank losses due to deepfake fraud cost the industry around $12 billion in 2023. Deloitte predicts that the number of deepfake fraud cases will grow more than three times by 2027. They expect losses for banks and their customers to reach up to $40 billion.
The potential risks of deepfake fraud to consumers and businesses are significant, and include financial losses, reputational damage, emotional distress and even lawsuits.
Despite the short history of deepfakes, there are already countless real-world examples that have proven their danger and taught consumers and businesses valuable lessons in how to protect themselves.
In October 2024, an alleged crime ring used a romance scam and fake cryptocurrency platform to defraud victims across Asia, stealing more than $46 million. While Hong Kong police eventually arrested nearly two dozen suspects, the scam succeeded in using deepfakes to create tailored personas designed to lure young men into fake online relationships and “invest” in phony cryptocurrency platforms.
The key takeaway from this scam and others like it? Never share your personal information with anyone, steer clear of sending money to people you don’t know, and above all, trust your instincts — if it feels too good to be true, it probably is.
In another case, cybercriminals attempted to defraud WPP, the world’s largest advertising agency, by impersonating its CEO. The criminals used AI voice cloning and publicly available images of the CEO to try and solicit money and personal information from one of the firm’s leaders under the guise of opening a new business.
Though vigilant employees thwarted the attack, we can learn many lessons from it. First, businesses must remain cautious of any online communications.
It’s also important to recognize the signs of scams, verify information multiple times and create and follow secure company procedures, especially when sending money.
Though criminals use AI and ML to perpetrate deepfake fraud, the banking industry is leveraging these same technologies to help detect and prevent fraud. Most banks are increasing their focus on cybersecurity, implementing real-time fraud detection systems that continuously monitor and analyze data for discrepancies. In addition to multi-factor authentication and other identity-verification tools, banks are using behavioral analytics to establish baseline behaviors that track user activity and flag any irregularities.
Many banks are also working collaboratively with one other and with regulatory agencies to combat fraud. The Federal Deposit Insurance Corporation (FDIC) established an Intelligence and Threat Sharing Unit (ITSU) in 2021 to help disseminate threat information and the Financial Crimes Enforcement Network (FinCEN) joined a public-private partnership in 2024 dedicated to preventing fraud and scams.
On an individual level, banks are allocating more resources and attention on educating customers about the risks of financial fraud and how to protect against deepfakes. These efforts include videos and articles, training programs for both employees and customers, awareness campaigns, workshops and more.
As deepfakes and financial scams continue to grow, consumers and businesses must remain vigilant at all times to protect themselves and their accounts. Follow these best practices to help avoid falling victim to deepfake frauds and other financial scams:
Deepfake fraud can impact individuals and businesses across all sectors, which is why it’s important to know the signs, remain vigilant and leverage the tools and technology to protect yourself. No matter how legitimate something might seem, exercising caution, verifying information and using the latest security methods can help prevent fraud. Keep an eye out for red flags, such as urgent or unusual requests and verification failures and continue to stay up to date about the latest scams.
If you think you’ve been a victim of fraud, contact Seacoast Bank immediately.
Topics: Protect Your Finances
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