the new face of online scams.
Imagine answering a video call from your CFO, their voice and face exactly as you know them—except it’s not them. Within minutes, a financial transfer is approved, and the funds are gone. You’ve just been scammed by a deepfake.
Deepfake technology has come a long way from experimental AI-generated face swaps. Today, cybercriminals are using AI to create eerily convincing voices and videos, making scams harder to detect and easier to fall for. Businesses, particularly those reliant on remote communication, need to understand how deepfakes work, the latest defences, and what the future might hold.
what are deepfakes, and how do they work?
Deepfakes are hyper-realistic video and audio forgeries created by artificial intelligence. The process involves training AI models on hours of video footage or voice recordings, allowing them to mimic a person’s appearance, speech patterns, and mannerisms with near-perfect accuracy.
Originally developed for entertainment and creative purposes, deepfakes have now been weaponised for fraud, corporate deception, and social manipulation. Unlike crude phishing emails riddled with typos, deepfakes exploit trust in a way traditional scams never could.
how cybercriminals are using deepfakes.
The implications go beyond fake celebrity videos or misinformation on social media. Criminals are leveraging deepfake technology for sophisticated scams targeting businesses. Here’s how:
1. fake executive orders.
Scammers clone the voice of a CEO or senior executive to instruct employees to approve wire transfers or release confidential data. Unlike email scams, where impersonation is limited to written words, a deepfake voice can be almost impossible to distinguish from the real person.
Real Case: In early 2023, cybercriminals used deepfake video and voice technology to impersonate a financial executive in a Hong Kong-based bank. The scammers held a live video meeting with bank employees, appearing as senior executives, and successfully convinced them to transfer over $25 million USD to fraudulent accounts. Employees were completely unaware they were dealing with an AI-generated deception, as the deepfake mimicked not only facial expressions and voice patterns but also natural conversational responses. The fraud was only discovered when employees followed up with the real executive, who had no knowledge of the transaction.
2. market manipulation.
A realistic deepfake video showing an executive announcing a fake merger or bankruptcy could trigger stock price swings before the deception is exposed. The financial sector is particularly vulnerable to these rapid-response scams.
3. reputational sabotage.
A fabricated video of an executive making offensive remarks or engaging in misconduct can spread rapidly, damaging a company’s reputation before it has time to respond. Industries with public-facing executives—such as banking, healthcare, and government—are at higher risk.
what’s next for deepfake attacks?
While current scams focus on financial fraud and reputation damage, deepfakes could soon be used for even more sophisticated attacks:
Synthetic Identities for Financial Crimes – AI-generated fake people could bypass identity verification systems, undermining KYC (Know Your Customer) compliance in banking and fintech.
Weaponised Misinformation – Authoritative-looking deepfakes could be used in elections, influencing public sentiment before fact-checkers can respond.
Deepfake Ransom Attacks – Criminals may fabricate compromising videos of executives and demand payment to prevent their release.
regulatory responses.
Governments and regulators worldwide are introducing measures to address deepfake-related threats, particularly in financial fraud, privacy protection, and identity security.
Australia’s Privacy Act: The proposed reforms to Australia’s Privacy Act include new protections against AI-generated identity fraud. Companies may soon be legally required to detect and prevent deepfake-related impersonation fraud, particularly in financial and telecommunications sectors.
The UK Financial Conduct Authority (FCA): The FCA has issued guidance for financial institutions on identifying and mitigating AI-driven fraud, including deepfake scams. UK-based businesses dealing with digital transactions are expected to implement enhanced authentication methods and deepfake detection tools as part of compliance requirements.
The U.S. Securities and Exchange Commission (SEC): The SEC has warned companies about the risk of deepfake-driven stock manipulation. Financial firms are encouraged to implement real-time fraud detection systems and adopt AI-based security solutions to protect against fabricated executive announcements that could impact market stability.
As deepfake threats evolve, stricter legal obligations will likely follow, forcing companies to integrate advanced detection tools and implement stronger identity verification practices to avoid legal and financial consequences.
how industries are fighting back.
1. banking & finance: real-time AI detection.
Banks are experimenting with AI models that flag deepfakes in real-time. Some fraud detection systems now analyse speech rhythm and micro-expressions to identify abnormalities in video calls before transactions are approved.
2. healthcare & government: multi-layered verification.
Hospitals and government agencies are incorporating multi-factor identity verification, requiring live video confirmations where individuals must perform specific actions in real-time to prove authenticity.
3. social media & tech: deepfake watermarking.
Tech giants like Microsoft and Google are investing in AI that can embed cryptographic watermarks in legitimate videos, helping platforms and users distinguish between real and manipulated media.
how to protect your business.
Deepfake detection is still an evolving science, but companies can take practical steps to stay ahead:
✔ Train Employees to Spot Red Flags – Encourage skepticism towards unexpected video or voice requests, especially those involving financial transactions.
✔ Implement Strict Authentication Protocols – Require verification beyond voice and video confirmation, such as secure callbacks to a known number.
✔ Adopt AI-Based Detection Tools – Emerging software can detect anomalies in video and voice, flagging possible deepfakes before they cause damage.
✔ Prepare a Crisis Response Plan – If a deepfake attack occurs, having a response strategy in place can help mitigate damage and restore trust.
the bottom line.
Deepfakes represent one of the most unsettling advancements in cybercrime, eroding trust in digital communication. While detection technology is improving, businesses can’t rely on software alone. The best defence is a combination of awareness, verification, and resilience planning.
The future of cybersecurity won’t just be about stopping hackers—it will be about recognising when the person speaking to you isn’t a person at all.
