To effectively combat financial fraud, identity theft, and other forms of scams, it is crucial for the public and private sectors to select the right set of technologies. Fundamentally, this should encompass a multimodal approach that utilises advanced AI, biometrics and fraud analytics, among others.

In an era where technology is advancing at an unprecedented pace, the financial sector faces a new and formidable challenge: deepfake scams. Frederic Ho, Vice President of Asia Pacific at Jumio Corporation, shared valuable insights on this emerging threat and how financial institutions can fortify their defenses.

The Evolution of Deepfake Scams: A Growing Sophistication

Deepfake scammers are rapidly evolving their tactics, leveraging the accessibility of AI to create increasingly convincing fraudulent content. Ho pointed out, “With AI becoming easier to get your hands on, scammers are getting more creative in churning out believable fake news, social media posts and other types of misinformation — faster and cheaper than ever before.”

Particularly concerning is the advancement in deepfake technology, especially in voice cloning and lip-syncing. These sophisticated techniques can now produce eerily realistic impersonations, making it increasingly difficult for the average person to discern fact from fiction.

The implications of this technology extend beyond simple impersonation. Ho explained, “Generative AI enables criminal syndicates to mass produce multiple fake IDs at a low cost. Fraudsters then use these stolen identities to create synthetic identities — which combine fabricated credentials and valid government-issued identity numbers and embed their photo on the ID to bypass selfie checks.”

Consumer Confidence: A Crisis of Trust in Banking Security

Frederic Ho

The rise of deepfake scams has significantly eroded consumer confidence in traditional banking security measures. According to Jumio’s research, a staggering 67% of global consumers (and 78% in Singapore) doubted their banks’ ability to combat deepfake-based fraud.

This lack of confidence is translating into a strong demand for enhanced security measures. Ho noted, “74% of Singapore consumers are calling for more robust cybersecurity measures, compared to 69% globally.”

The anxiety surrounding potential fraud is palpable, with the majority of consumers worrying daily about falling victim to data breaches and account takeover attacks. This growing concern could lead to a significant shift in consumer behavior, with 75% of global consumers (and 78% in Singapore) considering switching providers due to security concerns.

Strengthening Defenses: The Financial Sector’s Response to Deepfake Threats

In response to these evolving threats, financial institutions and technology providers are implementing more sophisticated defense mechanisms. Ho emphasized the importance of liveness detection as a crucial tool in combating deepfake fraud. “Sophisticated liveness detection methods are rigorously tested to ensure that they can foil advanced spoofing attempts,” he explained.

However, Ho also stressed that a single-faceted approach is no longer sufficient. “For high-risk industries such as financial services and the public sector, where monetary transactions and personally identifiable information data are involved, it’s crucial for organisations to harness cutting-edge AI technologies to detect deepfake content.”

Information sharing is particularly essential for protecting critical infrastructure and advancing cybersecurity efforts.

Jumio’s approach involves a multimodal strategy, integrating liveness detection, AI, computer vision, biometrics, automated watchlists, and risk signal checks. This comprehensive approach not only enhances security but also maintains a smooth user experience, which is crucial for customer retention.

Building a Multi-Layered Defense: Public and Private Sector Collaboration

Ho emphasized that combating financial fraud effectively requires a collaborative effort between the public and private sectors. He advocated for a multilayered approach that goes beyond just technological solutions:

1. Adopting AI-driven predictive analytics to identify interconnected fraud patterns.
2. Strengthening regulatory frameworks to create a more secure digital environment.
3. Implementing community-level initiatives, such as the Singapore Police Force’s Anti-Scam Command.
4. Fostering public-private partnerships to set robust cybersecurity standards and scale up innovative solutions.

“Information sharing is particularly essential for protecting critical infrastructure and advancing cybersecurity efforts,” Ho stated. “By combining resources and expertise, these partnerships create a resilient defence against evolving cyber threats and drive the development of cutting-edge solutions, thereby strengthening the overall security of our financial ecosystems.”

As deepfake technology continues to advance, the financial sector must remain vigilant and adaptive. By implementing comprehensive security measures, fostering collaboration, and staying ahead of emerging threats, financial institutions can protect their customers and maintain trust in an increasingly digital world.