Artificial Intelligence (AI) is revolutionizing many sectors, including the realm of fraud. One of the most concerning developments is the rise of deep fake technology, which poses a significant threat in South Africa.
Criminals are employing increasingly sophisticated methods of impersonation fraud using AI-generated video and voice. These deep fakes are so realistic that they have tricked businesses into transferring millions of dollars to scammers. For example, an employee at a multinational company’s Hong Kong office transferred $26 million after a convincing video call with deep fakes of co-workers, including the CFO.
Recently, a staff member at Luno, South Africa’s largest crypto investment app, received a deep fake audio message on WhatsApp. The message, supposedly from a Luno executive, raised concerns among alert staff, who managed to avert the scam.
According to Johan Hetzel, Global Head of Compliance and Anti-Financial Crime at Luno, deep fakes are a material risk in the crypto sector. He explains, “The blockchain technology that underpins cryptocurrencies allows for transaction tracking. Unlike traditional finance, where fraud syndicates move funds between various institutions, blockchain offers a transparent ledger. However, deep fake videos and audios are challenging to detect due to our natural tendency to trust what we see and hear.”
Combatting Deep Fakes
Deep fakes often exploit high-profile individuals, such as Elon Musk. Recently, deep fake videos of Musk promising double returns for fake investment schemes flooded YouTube during SpaceX’s Starship rocket launch.
Luno tackles these threats with a dedicated team that uses tools to scan domains and social media for fraudulent use of its brand. Over the past year, Luno has identified over 2,000 fake social media sites with a takedown success rate of 98% and nearly 500 fake websites with an 87.6% success rate.
Spotting Red Flags
Several indicators can help identify deep fakes:
- Communication Channel: Verify the legitimacy of contact methods. Check email addresses and scrutinize social media account details, such as creation dates and contact numbers.
- Visual Cues: Look for unnatural facial expressions, facial morphing, and distorted features. Signs of deep fake videos include unnatural eye movements, missing blinking, and inconsistent shadows.
- Audio Cues: AI-generated voices often lack emotional variation and tonal depth. Listen for signs of unnatural speech patterns, lack of breathing, and background noise.
Blockchain as a Solution
Blockchain technology offers a promising solution for verifying content authenticity due to its transparent and decentralized nature. This technology has already been used to authenticate digital art like NFTs, and its potential extends to verifying videos, images, and text.
General Tips for Avoiding Scams
Hetzel advises, “Fraud remains a major concern for both crypto and traditional financial services. To protect yourself, be skeptical of deals that seem too good to be true. Always verify the identity of individuals or organizations through thorough online research and ask specific questions about their business. Fraudsters often pressure you into making quick decisions. Take your time to think things through, and don’t hesitate to terminate suspicious conversations.”
As AI technology advances, staying informed and vigilant is key to safeguarding against emerging threats like deep fakes.