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Computer scientists initially created deepfakes for entertainment. However, more people are starting to use them as a tool for deception. Due to its capabilities to imitate an individual, fraudsters may use it to spread disinformation, create non-consensual pornography, and even commit document fraud. Deepfakes can be a grave threat when used for fraudulent or deceptive purposes.

With the threats above, it is clear that deepfake technology can threaten individuals and entities in different industries. If you are currently managing a financial institution, you should know the dangers deepfakes can pose to your staff, clients, and organization.

Fun or Financial Ruin: The Dangers of Deepfakes to Financial Institutions

1. Audio deepfake scams

In 2019, criminals tricked the CEO of an energy firm by using an AI-generated deepfake voice of his boss and persuaded him to transfer €220,000 to a Hungarian bank account urgently.

The report said that the voice seemed so realistic that the “slight German accent and the melody of his voice” were evident on the phone. This deception caused the victim to cooperate immediately. It is only one of many reports of deepfake scams.

2. Social engineering attacks

Social engineering attacks occur when a malignant actor fakes the audio of a victim to call financial institutions about password resets and other schemes to access their victim’s account.

They do this by obtaining information from the dark web and searching for the victim’s social media accounts, where they can easily use the victim’s face or voice to perform the attacks.

3. New account fraud

As the name suggests, criminals create new accounts of fake or stolen identities to open new bank accounts. Once successful, they can max out credit cards, take out loans, and disrupt the individual’s overall financial credibility and reliability. Fortunately, banks can easily resolve this issue by implementing a strong Know Your Customer (KYC) process.   

4. Ghost identity theft

Ghost identity fraud is when the information of a deceased individual is used to access savings accounts, obtain loans, and increase credit scores. A deepfake makes these transactions believable enough to convince institutions that the individual is still well and alive.

5. Synthetic identity fraud

Deepfakes can now create a hyper-realistic version of an individual who doesn’t exist. Criminals are getting craftier by creating an entire person with combined real and fake stolen information.

The worst part about synthetic identity fraud is that it is extra challenging to spot. The best way to combat these kinds of deceit is through biometric identification.

Stay Safe from Deepfakes

Deepfakes are becoming highly realistic. As technology advances, you should consider the legitimacy of the different forms of media you encounter online. Considering the threats above, being aware of best practices and keeping a proactive approach to your security will guarantee your safety.

Biometric systems require users to authenticate themselves through biometric data like fingerprint patterns, irises, face, voice, and more—all of which deepfake individuals cannot provide.

To protect all members of your organization from deepfakes, acquire biometric authentication solutions from a trusted security partner.

Interested? Inquire more about Q5id’s biometric security system today!

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