Deepfake technology, which uses artificial intelligence to create realistic but false images and videos of people, has been a growing threat to the security and privacy of individuals and organizations. In recent years, deepfake scams have targeted banks and their customers, using fake identities and voices to trick them into revealing sensitive information or transferring money. However, banks are not helpless against this menace. They are developing and deploying new technologies and strategies to detect and prevent deepfake fraud.
What are deepfake scams and how do they work?
Deepfake scams are a form of cybercrime that use deepfake technology to impersonate someone else, usually a person of authority or trust, such as a bank manager, a government official, or a celebrity. The scammers use sophisticated software to manipulate the appearance and voice of the person they are impersonating, making it hard for the victims to tell the difference. The scammers then contact the victims through phone calls, emails, or social media platforms, and try to persuade them to do something that benefits the scammers, such as revealing their personal or financial information, or sending them money.
One example of a deepfake scam that targeted a bank was reported in 2019, when a UK-based energy company was tricked into transferring €220,000 to a fraudster who used deepfake technology to mimic the voice of the company’s German parent company’s chief executive. The fraudster called the UK company’s managing director and instructed him to send the money to a Hungarian supplier, claiming that the transfer was urgent and that he would be reimbursed later. The managing director did not suspect anything wrong, as the voice sounded exactly like his boss’s.
Another example of a deepfake scam that targeted a bank customer was reported in 2020, when a Canadian woman lost C$3,000 after receiving a phone call from someone who claimed to be from her bank. The caller used deepfake technology to sound like the woman’s husband, and told her that their bank account had been hacked and that she needed to transfer their money to a safe account. The woman followed the instructions, only to realize later that she had been scammed.
How are banks detecting and preventing deepfake scams?
Banks are aware of the dangers posed by deepfake scams, and are taking measures to protect themselves and their customers from falling victim to them. Some of the technologies and strategies that banks are using or developing include:
- Biometric authentication: Biometric authentication is a method of verifying someone’s identity based on their physical or behavioral characteristics, such as their fingerprint, face, voice, or iris. Banks are using biometric authentication to enhance their security systems and make it harder for scammers to impersonate their customers or employees. For example, some banks use voice recognition software to verify the identity of their customers who call them. Other banks use facial recognition software to verify the identity of their customers who use their mobile apps or online banking services.
- Deepfake detection: Deepfake detection is a method of identifying whether an image or video is real or manipulated by deepfake technology. Banks are using deepfake detection to spot and flag any suspicious or fraudulent activities involving deepfake images or videos. For example, some banks use deepfake detection software to scan the images or videos that their customers upload as part of their identity verification process. Other banks use deepfake detection software to monitor the online presence and reputation of their executives and employees.
- Education and awareness: Education and awareness are essential for raising the level of vigilance and caution among bank customers and employees regarding deepfake scams. Banks are educating and informing their customers and employees about the risks and signs of deepfake scams, and how to avoid or report them. For example, some banks send regular alerts and reminders to their customers about how to protect their personal and financial information online. Other banks conduct training sessions and workshops for their employees on how to spot and prevent deepfake scams.
Why are deepfake scams a serious threat for banks?
Deepfake scams are a serious threat for banks because they can cause significant financial losses, reputational damage, legal liability, and customer dissatisfaction. Some of the potential impacts of deepfake scams for banks include:
- Financial losses: Deepfake scams can result in direct financial losses for banks and their customers, as scammers can steal money from bank accounts or transactions. According to a report by Juniper Research, cybercrime will cost businesses over $5 trillion annually by 2024, with deepfakes being one of the emerging threats.
- Reputational damage: Deepfake scams can damage the reputation and credibility of banks and their executives, as scammers can create fake images or videos that portray them in a negative or compromising way. For example, in 2018, a fake video of former Barclays chief executive John Varley was circulated online, showing him admitting to fraud charges. The video was later exposed as a deepfake, but it caused embarrassment and confusion for the bank and its customers.
- Legal liability: Deepfake scams can expose banks to legal liability, as scammers can use deepfake technology to impersonate bank customers or employees and commit illegal acts, such as fraud, identity theft, or blackmail. Banks may face lawsuits or regulatory actions from the victims or authorities, who may hold them responsible for failing to prevent or detect the deepfake scams.
- Customer dissatisfaction: Deepfake scams can erode the trust and confidence of bank customers, as they may feel insecure or violated by the scammers who use deepfake technology to deceive them. Customers may lose faith in the security and reliability of their bank’s services, and may switch to other banks or alternative financial providers.
Deepfake technology is a powerful and dangerous tool that can be used by scammers to target banks and their customers. Banks are not passive or helpless against this threat. They are actively developing and deploying new technologies and strategies to detect and prevent deepfake scams. Banks are also educating and informing their customers and employees about the risks and signs of deepfake scams, and how to avoid or report them. By doing so, banks are fighting back against deepfake scams, and protecting their financial interests, reputation, and customer loyalty.
