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Elevate Magazine
October 4, 2024

Deepfake Technology Poses Serious Risks for Organisations

deepfake technology poses serious risks for organisations

Deepfake technology continues to pose a serious risk to businesses, as nearly 50% of companies in different countries have reported experiencing incidents of deepfake fraud.

A survey conducted by Regula highlighted the urgent need for organisations to understand and mitigate the risks associated with this sophisticated form of cybercrime.

Companies have to confront the growing threat posed by deepfakes, which can manipulate audio and video to impersonate individuals convincingly. The survey indicates a 20% increase in video deepfake incidents and a 12% rise in audio deepfakes since 2022.

Understanding the Threat

Deepfakes are synthetic media created using artificial intelligence (AI) and machine learning, enabling the manipulation of audio and video to convincingly impersonate individuals. Initially popularised in entertainment, their potential for misuse in business contexts is alarming. The implications include:

Reputational Damage

Deepfake videos or audio recordings have the capability to depict executives making controversial statements, which could lead to dissemination of misinformation and irreparably harming a company’s reputation.

Financial Fraud

Cybercriminals can use deepfakes to mimic the voices or appearances of key personnel during financial transactions, resulting in substantial financial losses. For example, a Hong Kong company lost $25 million due to a deepfake impersonation of its CFO during a video call.

Market Manipulation

False information propagated through deepfakes can lead to stock market volatility and affect a company’s market value and investor trust.

Data Security Risks

Deepfakes can bypass traditional biometric security measures and allow unauthorised access to sensitive data and systems.

Legal and Compliance Challenges

The use of deepfakes can create legal complications, particularly if they are employed to fabricate evidence or violate privacy laws.

regula
Photo source: Regula

Recent Regula Findings

The survey conducted by Regula revealed that 49% of businesses reported encountering audio or video deepfakes in 2024, a stark increase from previous years. Specifically, the figures rose from 29% for video deepfakes and 37% for audio deepfakes in 2022. The United Arab Emirates showed the highest vulnerability to video deepfakes at 56%, while Singapore reported similar levels for audio deepfakes.

Other Identity Fraud Tactics

Furthermore, according to Regula’s survey, the use of counterfeit or altered physical documents continues to be the most prevalent method for committing identity fraud globally. It also revealed that 58% of business leaders identified fake or modified physical documents as a tactic employed in identity fraud over the past two years, an increase from 49% in 2022. This method is particularly prominent in several countries, including:

  • Mexico (70%)
  • United Arab Emirates (66%)
  • United States (59%)
  • Germany (59%)

Mitigation Strategies

To effectively combat the threats posed by deepfake technology, businesses should implement comprehensive strategies:

Awareness and Education

Regular training sessions should be held to inform employees about deepfake technology and its implications. Employees should learn how to recognise indicators of deepfakes, such as unusual facial movements or inconsistencies in audio-visual synchronisation.

Investing in Detection Technology

Organisations should adopt AI-based solutions capable of detecting anomalies in audio and video files. This can help identify deepfakes before they cause significant damage.

Enhanced Verification Protocols

Implementing multi-factor authentication (MFA) is crucial for sensitive operations. This adds an extra layer of security by requiring multiple forms of verification beyond traditional methods like passwords or PINs.

Crisis Management Planning

Businesses should prepare for potential reputational damage by developing crisis response strategies that include protocols for verifying the authenticity of suspicious communications.

Legal Frameworks

Establishing clear legal protocols for addressing incidents involving deepfakes is critical. Organisations can also collaborate with law enforcement and regulatory bodies that can help mitigate risks associated with the misuse of this technology.

Deepfake technology constitutes a complex and potentially damaging cyber threat that businesses must take seriously. With incidents on the rise and the tools for creating deepfakes becoming accessible, organisations need to boost their cybersecurity measures and employee training programs.