The Rise of AI Scams: What Business Leaders Need to Know About Deepfake Videos

The rapid advancements in artificial intelligence (AI) have brought immense benefits to the business world, including automation, enhanced decision-making, and improved customer experiences. However, these new waves in tech have also paved the way for sophisticated cyber scams - like deepfake technology. For business leaders and managers, understanding the potential risks posed by deepfake videos, and how to mitigate them, is essential for safeguarding their organizations.?

What Are Deepfakes?

Deepfakes are forged, hyper-realistic media created with AI. A deep fake AI video involves manipulated visuals and/or audio that seems genuine. Deepfake technologies use learning algorithms to superimpose faces and voices onto other people’s bodies, creating content where individuals appear to say or do things they never actually did. While deepfakes have some legitimate use in entertainment and media, additionally they are being weaponized for fraud and manipulation. Cybercriminals are making deepfake videos impersonating business leaders and trusted officials to convince people their requests are legitimate and should be trusted.

Real-World Examples of Deepfake-Related Scams

Several notable cases illustrate the growing threat that deepfakes pose to businesses:

The Voice Scam Incident

In 2019, an energy company in the UK fell victim to a deepfake scam involving AI-generated voice mimicry. Scammers impersonated the voice of the company’s CEO and convinced an executive to transfer $243K to a fake account. The scam was successful because of how lifelike the fake CEO’s voice seemed. This was a case where deepfake audio was used to exploit trust within an organization.?

Deepfake Videos for Business Espionage

Deepfakes are not only used for financial scams, but they’ve also been used for business espionage too. Cybercriminals have been known to create fake interviews with executives to gain insider information or steal proprietary data. In early 2024, a tech company discovered that cyber criminals used a deepfake video of their CTO in a Zoom call to deceive employees into divulging sensitive information and paying them nearly $25M.

Phishing/Vishing 2.0

Deepfakes are also taking phishing scams to a new level. Traditional phishing involves fraudulent emails designed to trick individuals into sharing sensitive information. With deepfakes, cybercriminals can create fake LinkedIn accounts of executives to add legitimacy to deepfake video or audio clips requesting urgent action. Cyber criminals are using a multi-layered approach to make their schemes incredibly convincing on several fronts.

AI Scam Impacts on Businesses

The implications of deepfake technology on business security are extensive and multifaceted. Here are some of the main areas of concern:

1. Financial Losses: Deepfake scams can lead to significant financial losses, as illustrated by the voice scam incident in 2019. Cybercriminals use deepfake technology to create fraudulent requests for transfers, authorizations, or data disclosures.
2. Reputation Damage: Companies risk severe reputational harm if deepfake media is used against them. For instance, manipulated videos of executives making inappropriate remarks or engaging in unethical behavior can spread quickly, leading to public backlash and a loss of trust from clients and stakeholders.
3. Internal Security Breaches: Deepfakes can be used for impersonation to bypass internal security protocols. For example, a cybercriminal might use a deepfake video of an executive to trick an employee into granting access to restricted systems or files.
4. Legal and Compliance Risks: Businesses could face legal challenges if they fail to protect stakeholders from deepfake-related scams. In industries with stringent compliance requirements, like finance and manufacturing, the use of deepfakes to spread false information or manipulate markets could have serious legal repercussions.

Why Deepfake Videos Are So Effective

Deepfake technology is effective because it exploits the core elements of trust and human perception. Unlike traditional scams, deepfakes tap into human reliance on visual and audio cues to validate information. This enhanced deception can bypass security training that focuses solely on traditional email phishing or text-based social engineering.?

The accessibility of AI tools has also contributed to wider use of deepfakes. New developments in AI, like more open-source platforms and user-friendly software, are making it easier for cybercriminals to create convincing deepfake media with minimal technical expertise. As a result, businesses must be aware that the threat of deepfake scams is no longer limited to high-profile targets, but extends to organizations of all sizes and industries.

Tips for Combating Deepfake Scams

To mitigate the risks posed by deepfake technology, business leaders should adopt a proactive approach that includes organizational and personal security measures. Below are some tips to help protect businesses and employees against deepfake-related scams:

1. Strengthen Verification Protocols

• Implement multi-factor authentication (MFA) for authorizations involving financial transactions or sensitive data access. MFA creates additional barriers to access accounts or data. If a deepfake tricks an individual, then MFA brings additional stopgaps before their scam is completed.
• Use callback verification procedures where employees must call a known number to confirm requests made through video or audio communication.

2. Invest in AI Scam Detection Tools

• Leverage AI-powered detection tools that analyze digital content for signs of manipulation. AI and cybersecurity tools can help flag deepfake media by identifying inconsistencies in pixels, voice modification, or metadata.
• Partner with cybersecurity firms that leverage AI-powered security solutions as part of their threat intelligence services.

3. Enhance Employee Training

• Update cybersecurity training programs to include information on deepfakes and their risks. Educate employees on recognizing the signs of manipulated media and encourage a culture of skepticism. Education with deepfake video examples helps raise awareness for how tricky the videos can be and what to check for.
• Run internal simulations where employees encounter deepfake scenarios to practice identifying and responding to these threats.

4. Implement Robust Communication Policies

• Establish clear protocols for handling communication requests, particularly those involving financial or sensitive information. For instance, make a policy where high-level transactions can only be performed when verbal or video requests are made with additional verification.
• Encourage employees to report suspicious communications immediately, fostering a culture of vigilance. Additionally, applaud their reporting and recognize their success when they alert you about phishing/scammy messages.

Final Takeaways

Deepfake technology presents a serious and growing risk for businesses. From financial scams and reputational damage to security breaches, the potential impacts are significant. Understanding these threats and implementing a comprehensive strategy to address them is important. Make considerations for including verification protocols, detection tools, and employee training to better protect all aspects of your organization.

On a personal level, limiting exposure to audio and video content and being mindful of communication practices can help employees safeguard themselves from falling victim to AI scams. Stay informed on the latest AI developments to know what opportunities and challenges may face your business and employees. Furthermore, AI is changing the cyber threat landscape, both for attackers and those defending their organizations. As AI technology continues to evolve, staying informed and vigilant about cybersecurity is key to combating the tricky cyber threats that deepfakes represent.

?Need more security training for your team? As part of our Cybersecurity Public Service Initiative, we are offering live security training for organizations, no cost and no strings attached. If you’d like more cybersecurity training for your team, contact us to get your session booked!