Just recently, a finance staffer at a multinational firm fell victim to a scam that sounds like something out of a movie; he was duped into transferring a staggering $25 million to fraudsters who used deepfake technology to impersonate the company’s chief financial officer during a video call.
It’s a chilling reminder of how quickly things can go wrong. In fact, losses from similar scams reached $12.3 billion in 2023 alone across various industries, especially in banking and finance.
Common Types of Generative AI Fraud
As generative AI technology becomes more sophisticated, so do the tactics that fraudsters use. Here are some of the most common types of fraud that you should be aware of:
- Deepfakes
Deepfakes are artificially created videos or audio recordings designed to mimic real people. They can be incredibly convincing, often tricking individuals into believing false information. - Synthetic Identity Fraud
According to a TransUnion report, synthetic identity fraud is the fastest-growing type of fraud, driven by the rise in data breaches—up 15% year-over-year in 2023. This form of fraud combines stolen real data with fabricated details to create believable yet fake identities. - AI-Enabled Phishing
Imagine receiving an email that looks and feels exactly like a legitimate communication from your bank, but it’s actually a trap. Fraudsters now use machine learning algorithms to craft phishing emails, texts, and messages that trick users into revealing confidential information or downloading malware, putting their data at risk. - Automated Fraud
AI can also automate complex fraud schemes. Credential stuffing is a common example, where fraudsters exploit users’ tendency to reuse login credentials across multiple accounts. This tactic accounted for over one-third of online login attempts in 2020, leading to significant data breaches like the one that impacted Ticketfly, affecting 27 million accounts. - Document Forgery
Generative AI can create or alter documents such as identity cards, bank statements or financial records, making them appear authentic. This type of forgery can be incredibly damaging as manual checks struggle to detect these fake documents.
Prevent Generative AI Fraud with Seamfix Solutions
At Seamfix, we’re dedicated to helping businesses combat this growing threat with innovative, AI-powered solutions tailored to protect against various types of fraud, including deepfakes and synthetic identities.
- Document Verification swiftly detects sophisticated document forgeries, identifying discrepancies in real time to prevent fraud.
- We use facial recognition paired with active liveness detection to ensure that the person being verified is genuinely who they claims to be, countering deepfake threats.
- Our system identifies combinations of real and fabricated data, allowing you to spot red flags and prevent unauthorised account access.
- Easily integrate into your existing workflows with APIs and SDKs, ensuring you can adapt quickly to evolving threats without disruption.
- Biometric Consent Engine allows for secure, remote verification by matching biometric data against official IDs, minimising the need for in-person interactions.
- Comprehensive Analytics enable you to adjust your strategies against the latest tactics used by cybercriminals.
With Seamfix, you can confidently protect your organisation from generative AI fraud while delivering an exceptional customer experience. Click the link below to get a free consultation.
