Deepfakes Contribute to $25.6 Million Scam Targeting Multinational Company

Bad actors are increasingly exploiting deepfakes for a range of malicious activities, from impersonating celebrities to executing elaborate financial scams. A recent case from Hong Kong highlights this growing issue, where a finance employee at a multinational company was deceived into transferring 200 million Hong Kong dollars (approximately $25.6 million).

According to Hong Kong police, the employee was contacted by scammers posing as the company’s chief financial officer based in the UK. Although he initially had doubts due to the secretive nature of the transaction, these concerns were quickly dispelled during a video call with what appeared to be the “CFO” and other familiar faces from the company. Each participant in the call was actually a deepfake, likely generated using publicly available video footage of the real individuals.

During the call, the deepfakes prompted the employee to introduce himself and then urgently instructed him to execute 15 transfers totaling $25.6 million to five local bank accounts. The call ended abruptly, leaving the employee unaware of the fraudulent nature of the transaction. A week later, upon checking the request internally, he discovered the deception.

As of now, Hong Kong police have arrested six individuals in connection with these types of scams. The suspects are implicated in stealing eight identification cards and filing 54 bank account registrations and 90 loan applications in 2023. They have also utilized deepfake technology to bypass facial recognition systems in at least 20 separate incidents.

The rise of deepfakes is becoming a significant concern amid advancing AI technology. Earlier this year, high-profile figures, including Taylor Swift and President Joe Biden, fell victim to identity manipulation through deepfakes. Swift was targeted with nonconsensual pornographic images and a scam aimed at potential Le Creuset customers, while Biden’s voice was used in robocalls to discourage voters in New Hampshire.

With the proliferation of deepfakes, it’s crucial to promote awareness and develop robust countermeasures to mitigate their impact.