The recent FinCEN alert (FIN-2024-Alert004) shines a spotlight on the escalating threat of deepfake fraud targeting financial institutions.
Criminals are leveraging readily available generative AI (GenAI) tools to create convincing synthetic media, enabling them to fabricate identities, bypass verification, and perpetrate financial crimes.
This isn't just a tech problem; it's a human behaviour problem. As the alert highlights, "the threat of deepfakes... comes not from the technology... but from people's natural inclination to believe what they see."
The lowered barrier to creating realistic fake content makes it easier for criminals to exploit this tendency; the tendency being that we as humans are willing to accept what we are presented with.
Key takeaways for financial institutions mentioned in this report are:
Enhanced Due Diligence: Scrutinise identity verification processes and be wary of synthetic media.
Multi-Factor Authentication: Implement robust authentication measures to protect against compromised credentials.
Employee Training: Educate your staff on identifying red flags and the evolving tactics of deepfake fraud.
BSA Reporting: Stay informed about your Bank Secrecy Act obligations in relation to these emerging threats.
Red Flags to watch for:
Inconsistencies: Look for discrepancies in customer photos, identity documents, or inconsistencies with other identifying information.
Verification Issues: Be suspicious of customers who avoid live verification checks, cite technical issues, or use plugins to present pre-recorded content.
Suspicious Account Activity: Monitor for rapid transactions, payments to high-risk entities, or account behaviours inconsistent with the customer's profile.
The rise of deepfakes demands a proactive approach.
Disclaimer: Please make your own inquiries and decisions about verification and deepfake technology, this post is not legal or regulatory advice.
The Telegraph: President Macron
The Telegraph: Deepfake -Brad Pitt
CBS: Video Explaining Deepfakes
Channel 4: Video Explaining Deepfakes
Bloomberg: Video - AI's Disinformation Problem | AI I
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