Published: October 12, 2024 on our newsletter Security Fraud News & Alerts Newsletter.
Even though AI has been around for decades, OpenAI's launch of ChatGPT brought AI to our dinner table conversations. Fears of AI intruding in our lives abound and some of those fears are now coming true. Nowhere is it more chilling than with growing cases of AI deepfake identity hijacking. With endless possibilities, a closer look at AI identity hijacking can help your business avoid falling into its web.
AI Deepfake Criminal Intent
From fake kidnappings to financial identity fraud, the world now has a front-row seat for AI-fueled deepfakes. One of the most disturbing examples finds a Hong Kong-based international corporation the target of an AI identity hijacking crime. It's an alarming and costly example of the power of identity hijacking.
This crime starts with a video conference between a Hong Kong-based financial department employee and alleged financial officers of the company's UK-based location. The supposed officers request large money transfers be sent to multiple accounts. And since it’s video, how can it be fake?
It ends with the staffer making the transfers totaling $25 million. Although financial fraud cybercrimes are nothing new, the financial officers' identities were hijacked using YouTube footage to create the video conference. The wire transfers went to scammer accounts and the crime is under investigation.
Avoiding Identity Hijacking
For any business involved with moving money back and forth, particularly having to do with large sums, additional verification steps are crucial to avoid identity hijacking. Now that we know the extent of just how scary-good AI deepfakes are, using code words is one way to confirm an identity. Another is to ask questions only you and the person would know the answers to. This step is especially true for unusual or large financial transfers and payments. For video requests, each person involved needs to be contacted separately for verification and it’s never a bad idea to have multiple people approve financial transactions.
Identity verification steps will likely change over time as AI evolves. We know that AI improves every day, and that means deepfake identity hijacking will get to a point that's hard to fathom and even harder to defend against. But by following the above advice, you can perhaps stay several steps ahead.
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