Rise in Deepfake Scams Raises Concerns About Identity Theft and Fraud

In recent years, the proliferation of deepfake technology has opened up a Pandora's box of concerns, with identity theft and fraud emerging as significant threats to individuals and financial institutions alike. Deepfaking, the act of digitally replacing one person's face or voice with that of another, has become increasingly accessible, making it a potent tool for scammers to exploit.

The sophisticated nature of deepfake technology has become a cause for alarm among fraud experts. As these malicious actors become more adept at creating convincing deepfakes, the ability to spot fraudulent activities becomes progressively more challenging. For financial companies like Barclays, BT, and Revolut, which rely on online identity verification services to protect their customers, this is nothing short of a nightmare.

One such company at the forefront of online identity verification is Onfido. They provide essential services to financial institutions, helping them ensure that the people opening accounts are who they claim to be. Their process involves comparing a user's submitted photo to an image of their passport or driver's license, or even a video of the user turning their head from side to side. Until recently, this seemed like a foolproof method to prevent identity theft.

However, Simon Horswell, a fraud specialist at Onfido, has witnessed a dramatic shift in the landscape. In 2021, the company encountered only a handful of deepfake attempts. This small number gave them a sense of security in their ability to protect against such fraud. Yet, as Horswell explains, the ease of access to deepfake technology has led to a significant uptick in incidents.

"The technical knowledge required to use these tools has come down so much, we've seen this huge increase year-on-year," says Horswell. This alarming trend has raised concerns about the vulnerability of identity verification processes, leaving financial institutions scrambling to adapt.

The risks posed by deepfake technology extend far beyond the financial sector. Scammers can use deepfakes to bypass identity verification processes and set up bank accounts under fake names. This facilitates money laundering and allows illicit funds to flow through these accounts undetected.

But the implications of deepfakes go even further. They can be used to manipulate individuals and public figures, spreading misinformation and disinformation on a massive scale. Politicians, celebrities, and ordinary citizens alike can fall victim to the damaging effects of deepfake content, eroding trust and sowing discord in society.

As the threat of deepfakes continues to evolve, it is crucial for individuals and institutions to remain vigilant. Awareness of the risks associated with deepfake technology is the first step in combating this growing menace. Financial institutions, like Onfido, are investing in more advanced technologies to detect deepfakes, but the battle is far from over.

In a world where trust and security are paramount, the rise of deepfakes serves as a stark reminder of the challenges we face in the digital age. As technology advances, so too must our efforts to protect ourselves and our assets from those who seek to exploit it for nefarious purposes.

Peter Auwerx