Deepfakes Scam: A New Threat to Multinational Companies
3 min read
Deepfakes, a type of artificial intelligence technology that can generate realistic images, videos, or audio of individuals who do not exist or have not consented to their creation, have become a significant concern for multinational companies. The latest instance of deepfakes being used for malicious purposes was reported in Hong Kong, where a finance worker for an undisclosed multinational company was tricked into remitting a substantial amount of money.
According to the Hong Kong police, the scammers contacted the employee posing as the company’s United Kingdom-based chief financial officer. The worker, who was initially suspicious, was reassured when he attended a video call with the “CFO” and other recognizable members of the company. However, each “person” he interacted with was a deepfake, likely created using public video clips of the actual individuals.
The deepfakes instructed the employee to introduce himself and then quickly asked him to make 15 transfers comprising $25.6 million to five local bank accounts. They created a sense of urgency for the task, and then the call abruptly ended. A week later, the employee checked up on the request within the company, discovering the truth.
The Hong Kong police have arrested six people so far in connection with the scam. The individuals involved had stolen eight identification cards and had filed 54 bank account registrations and 90 loan applications in 2023. They had also used deepfakes to trick facial recognition software in at least 20 cases.
Deepfakes have become a growing concern for multinational companies due to their ability to impersonate individuals and create a sense of authenticity. In January, two high-profile cases of deepfakes were reported. Taylor Swift, a renowned singer, was among those whose identities were forged with deepfakes. In her case, it was nonconsensual pornographic images of her and a financial scam targeting potential Le Creuset shoppers. President Joe Biden, the current President of the United States, had his voice used in some robocalls to New Hampshire constituents, imploring them not to vote in their state’s primary.
Deepfakes can be created using publicly available images, videos, or audio recordings. With the advancement of AI technology, deepfakes have become increasingly sophisticated, making it difficult to distinguish them from real images, videos, or audio. This poses a significant threat to multinational companies, as deepfakes can be used to impersonate executives, employees, or even customers, leading to financial losses, reputational damage, and legal issues.
To mitigate the risks of deepfakes, multinational companies need to implement robust security measures. These measures can include employee training on how to identify deepfakes, implementing multi-factor authentication for financial transactions, and using advanced AI technology to detect deepfakes. Additionally, companies can work with law enforcement agencies to track down and prosecute individuals who use deepfakes for malicious purposes.
The use of deepfakes is a reminder that AI technology can be used for both good and bad purposes. While deepfakes have the potential to revolutionize industries such as entertainment, marketing, and education, they also pose a significant threat to security and privacy. Multinational companies need to be aware of the risks and take proactive measures to protect themselves from deepfakes and other forms of cyber threats.
In conclusion, the use of deepfakes for scamming purposes in Hong Kong serves as a wake-up call for multinational companies to take the threat seriously. Deepfakes have the potential to cause significant financial losses, reputational damage, and legal issues. To mitigate the risks, multinational companies need to implement robust security measures, including employee training, multi-factor authentication, and advanced AI technology to detect deepfakes. Additionally, companies can work with law enforcement agencies to track down and prosecute individuals who use deepfakes for malicious purposes. The use of deepfakes is a reminder that AI technology can be used for both good and bad purposes, and multinational companies need to be prepared to address the challenges and opportunities that come with this technology.
