Experts warn that the rise of deepfakes, fueled by advanced generative AI technology, could pose significant threats to businesses in the near future. With limited technologies and regulations in place to counter the spread of fake audio, images, and videos created by deep-learning neural networks, businesses are vulnerable to costly shocks from deepfake attacks.
According to a recent report by threat-prevention firm Deep Instinct, deepfakes are currently at the top of the list of concerning cyber threats. About a third of companies view deepfakes as a critical or major threat, with 61% reporting an increase in attacks using deepfakes over the past year. Attackers are continuously innovating and adapting deepfakes to enhance their fraud strategies. They are utilizing generative AI to craft sophisticated attacks against financial institutions, manipulate stock markets, and blackmail executives and board members with fabricated but damaging content.
Abhi Srivastava, an associate vice president at Moody’s Ratings, warns that a deepfake campaign aimed at tarnishing a company’s reputation could have severe repercussions, affecting the firm’s overall credibility and financial stability. Such fraudulent activities expose businesses to potential disruptions, reputational harm, and financial losses.
In recent incidents, deepfakes have been employed in business leader impersonation fraud schemes, such as business email compromise (BEC) scams. These attacks involve using AI-generated audio and video of corporate executives to deceive employees into carrying out unauthorized transactions. In a notable case, an employee of a multinational corporation transferred millions of dollars after falling victim to deepfake instructions during a conference call.
Carl Froggett, CIO at Deep Instinct and former head of global infrastructure defense at Citi, highlights the escalating threat posed by deepfakes. As financial institutions face mounting challenges, including remote work models and increasingly sophisticated deepfake technology, the frequency and efficacy of deepfake attacks are expected to rise. Froggett emphasizes the importance of implementing robust identity verification and phishing-resistant measures to combat the growing threat of deepfakes.
The impact of deepfakes extends beyond financial fraud to stock market manipulation. Fictitious content circulated through deepfake videos and images has led to fluctuations in stock prices, causing billions in losses for businesses. Despite these risks, regulatory frameworks struggle to keep pace with the evolving threat landscape posed by deepfakes.
James Turgal, vice president of global cyber-risk at Optiv, acknowledges the difficulty of attributing material impact from deepfake attacks under existing disclosure rules. While companies are proactively enhancing their security measures to thwart deepfake scams, the technological advantage currently favors attackers. Implementing stringent authentication processes and fostering secure channels of communication are critical steps in mitigating the risks associated with deepfakes.
As businesses brace for the rising tide of deepfake threats, collaboration across legal, regulatory, compliance, and communication functions is essential. By preparing for potential scenarios and establishing trusted communication channels, companies can bolster their defenses against misinformation and fraudulent activities. The evolution of deepfake capabilities underscores the need for proactive measures and adaptive strategies across all industries to combat this growing cyber threat.