The exploitation of Deepfake technology in financial fraud has become a global concern. Fraudsters use advanced technology to fool people by making extremely convincing but phony films and audio.
What is Deepfake Technology?
Deepfake technology enables the fabrication of convincing movies, audio recordings, and photographs that can influence and mislead viewers by superimposing one person’s likeness onto another, changing their words and actions, and thereby presenting a false narrative or spreading misinformation.
Deepfakes, a combination of the words “deep learning” and “fake,” refer to the production of synthetic visual information. This technology uses artificial intelligence (AI) to transpose the facial movements of one person onto another’s face in video or audio recordings.
How Does Deepfake Fraud Happen?
You are likely to receive texts, calls, or video calls.
A fraudster using Deepfake technology may begin a video conversation and momentarily display a face that closely resembles someone you know. They will then abruptly disconnect, transitioning to a voice call and citing network problems. They can also imitate the voice of the person they are portraying.
Typically, the scammer will fake an emergency and ask for money immediately.
They may describe a medical emergency or a comparable problem and ask for your assistance. Given the sophistication of the technology, it is easy to feel you are being contacted by someone you know who is in real need.
Fraudsters take advantage of the victim’s emotional connection to the person they are impersonating, making their request for money appear urgent and genuine.
Because of the advanced nature of Deepfake technology, the sights and audio are incredibly convincing, enabling the victim to assume they are in true communication with a friend in need.
How Can You Avoid Deepfake Scams?
According to Kotak Mahindra Bank’s safe banking guidelines, if someone you know contacts you for immediate financial assistance, try to confirm their need by contacting individuals close to them.
If possible, arrange to meet in person before making any payments.
Do not accept any alternate numbers to which you can make payments using wallets or UPI.
Don’t transmit monies to anyone unless you’ve convinced yourself that there is a genuine need.
In a notable case revealed this year, CNBC reported that in January 2024, an employee at a Hong Kong-based corporation transferred $25 million to fraudsters. The command came during a video chat with her chief financial officer and other colleagues.
Later, it was revealed that she had not been on a call with any of them; instead, fraudsters had utilized Deepfake technology to replicate their appearances, causing her to unknowingly wire the money.
In 2023, a guy in Kerala became a victim of an artificial intelligence fraud and lost Rs 40,000 after receiving a call from someone purporting to be his old colleague.
Given the possibility of technology exploitation, financial institutions have begun publishing public interest messages to notify customers.
For example, Bank of Baroda, one of India’s top public sector banks, recently launched a banking fraud awareness campaign aimed at raising awareness about new-age financial frauds such as AI-generated Deepfake scams, which can deceive even the most cautious customers.
Customers can protect themselves and their sensitive financial information, as well as enjoy a safe and secure online banking and shopping experience, according to the advertisements.
