Were you unable to attend Transform 2022? Check out all of the summit sessions in our on-demand library now! Watch here.
Deepfakes aren’t new, but this AI-powered technology has emerged as a pervasive threat in spreading misinformation and increasing identity fraud. The pandemic made matters worse by creating the ideal conditions for bad actors to take advantage of organizations’ and consumers’ blindspots, further exacerbating fraud and identity theft. Fraud stemming from deepfakes spiked during the pandemic, and poses significant challenges for financial institutions and fintechs that need to accurately authenticate and verify identities.
As cybercriminals continue to use tools like deepfakes to fool identity verification solutions and gain unauthorized access to digital assets and online accounts, it’s essential for organizations to automate the identity verification process to better detect and combat fraud.
When deepfake technology evades fraud detection
Fraud-related financial crime has steadily increased over the years, but the rise in deepfake fraud in particular poses real danger and presents a variety of security challenges for everyone. Fraudsters use deepfakes for a number of purposes, from celebrity impersonations to job candidate impersonations. Deepfakes have even been used to carry out scams with large-scale financial implications. In one instance, fraudsters used deepfake voices to trick a bank manager in Hong Kong into transferring millions of dollars into fraudulent accounts.
Deepfakes have been a theoretical possibility for some time, but have garnered widespread attention only in the past few years. The controversial technology is now much more widely used due to the accessibility of deepfake software. Everyone, ranging from everyday consumers with little technical knowledge to state-sponsored actors, has easy access to phone applications and computer software that can generate fraudulent content. Furthermore, it’s becoming increasingly difficult for humans and fraud detection software to distinguish between real video or audio and deepfakes, making the technology a particularly malicious fraud vector. …