Deepfake Media Fraud Schemes
Artificial intelligence (AI) is a hot topic right now and while it is very useful in certain applications, it can also be an area of great risk. Financial institutions must be aware of the potential implications not only of how they are using AI but how their customers and even criminals are using it. FinCEN recently issued an Alert (FIN-2024-Alert004) on “Fraud Schemes Involving Deepfake Media Targeting Financial Institutions”.
Generative artificial intelligence is capable of producing highly realistic videos, pictures, audio and text, which can make it appear someone said something they did not. “Deepfake” refers to content that is highly realistic. This type of deepfake media can be very effective to carry out fraud schemes which often involve creating fake (and/or altering) identifying documents (e.g., driver’s licenses, passport cards, etc.) which are intended to exploit an institution’s identity verification process. Once an account is opened with a fraudulent identity, it can be used to further other fraud, such as online scams, check fraud, credit card fraud, loan fraud, unemployment fraud, and “authorized push payment fraud” (i.e., tricking someone into authorizing a payment).
Published
2024/12/09
Kevin Edwards
Kevin brings years of experience and a unique perspective on regulatory matters to our clients. A self-proclaimed geek and accredited CRCM, Kevin is also a recovering attorney with experience as in-house counsel for a large regional bank and one of the leading national title insurance providers. For reasons unknown, Kevin decided to leave the safety and serenity of his desk job to seek fortune and glory as a wandering adventurer. Like a bank compliance version of Kwai Chang Caine, The Man with No Name or Don Quixote, he now travels the land seeking to help those in need and righting compliance wrongs, wherever he may find them. Kevin lives in Sioux Falls with his two children, who are surprisingly normal after having endured their father’s vivid imagination for their entire lives. He won’t admit to having any hobbies, because apparently “Regulations never sleep.” (While he does say this in his Batman voice, we’re pretty sure he’s joking.) From the looks of his Facebook page, he likes the outdoors and spending time with his large extended family (who seem like relatively normal people).