Deep fake scam extracts a massive $25.6 million from multinational company

-An elaborate deep fake scam successfully duped a multinational corporation into misappropriating approximately $25 million.

-Fraudsters employed AI technologies to create counterfeit representations of a Chief Financial Officer (CFO) and other senior staff members during a video conference, convincing an unsuspecting employee to authorize the financial transactions.

This incident, involving the deceptive transfer of $25.6 million to swindlers, utilized AI to replicate the visual and auditory characteristics of the victim's higher-ups, including the company's CFO, throughout a video call. CNN initially reported this occurrence, which was further elaborated on by Baron Chan Shun-ching from the cyber security division of the Hong Kong police. This case represents one of the most significant financial deceptions using AI deep fake technology to date.

The deceptive operation commenced with a misleading communication, purportedly from the CFO based in the UK, coaxing the employee into a video discussion concerning a secretive fiscal matter. Despite initial hesitations and the clandestine nature of the request sparking caution, the authenticity projected by the deep fakes during the video conference successfully alleviated the employee's apprehensions.

Subsequent to the unauthorized financial activities, the realization of the error dawned upon the employee only after reaching out to the company's main office.

AI deep fakes have become tools for a variety of scams, targeting notable figures such as Elon Musk, Mr Beast, and UK Prime Minister Rishi Sunak, among others. Research indicates that distinguishing between genuine faces and advanced fakes has become increasingly challenging for humans, with approximately 25% of individuals being deceived by AI-generated vocal impersonations.

Eddie Cumberbatch, a social media influencer, recounted an AI scam targeting his grandparents with a phone call imitating his voice, alleging an emergency situation that necessitated financial aid—a tactic recurrently employed in these scams.

Chan detailed the fraudulent operation, stating, "The employee was enticed into a supposedly multi-participant video conference. The lifelike portrayals of the individuals in the meeting persuaded the employee to conduct 15 transactions to five different local bank accounts, cumulatively amounting to HK$200 million."

He stressed the significance of raising public awareness regarding the innovative deceptive strategies facilitated by AI, underscoring the need for vigilance even in the context of seemingly innocuous group online meetings.

Steve Grobman, McAfee’s Chief Technology Officer, previously highlighted the potential misuse of deep fake technology for fraud, noting the democratization of AI advancements that enable cybercriminals to fabricate realistic voice and video fakes with less effort than previously required.

The Hong Kong police advocate for meticulous verification of dubious meeting requests using established company communication protocols and for participants to actively confirm the legitimacy of others in meetings.

To combat deep fake fraud, it is recommended that individuals establish unique code words with friends and family. In situations arousing suspicion, requesting the code word or posing personal queries can serve as effective countermeasures.