How deepfakes & AI are changing the game in financial fraud

Technology is a big part of our lives today, making things faster and easier. But with all the good comes some bad, too. One of the greatest challenges we face is something called "deepfakes." At OneMain, our cybersecurity team’s top priority is to stay ahead of new threats like AI deepfakes to help secure our customer accounts and information.

What are AI deepfakes?

Imagine watching a video of your favorite celebrity saying something outrageous, only to find out it was never real in the first place. That’s what deepfakes can do. They’re created using super-smart computer programs that learn how to mimic real people's faces, voices and actions — this technology is often called “machine learning.” These fake videos or audios can be so convincing that it’s hard to tell what’s real and what’s not.

At first, deepfakes gained notoriety in the entertainment industry. But now, some bad actors are using them for more malicious purposes, like bank fraud and tricking others into giving away money or important information.

Deepfakes and financial fraud

Financial fraud is when someone tries to trick others to steal their money or personal information. This has been a problem for a long time, but deepfakes have made it even harder to spot these scams.

For example, deepfakes could be used to create fake videos of bank managers or customer service agents asking for personal details. These fakes look so real that people might not even question them. Imagine getting a video call from someone who looks exactly like your banker, asking for your account information. It’s easy to see how someone could be fooled.

Deepfakes can also be used in phone calls. With AI, scammers can create fake voices that sound just like someone you trust, like a family member or a bank employee. They might ask you to confirm a payment or share your account details. Once they have that information, they can steal your money or use your identity to take out loans or make purchases.

How deepfakes impact cybersecurity

Cybersecurity is all about protecting our computers, data and online activities from being hacked or stolen. But AI and deepfakes make this job much tougher. Most security systems are designed to catch simple tricks like weak passwords or phishing emails. But deepfakes are so realistic that they can fool even the smartest security programs.

For example, some banks use facial recognition to verify who you are before letting you access your account. But if a deepfake video is used instead of a real face, the system might not know it’s a fake and let the scammer in.

Deepfakes require sophisticated AI-based fraud detection tools — like fighting fire with fire. These tools have to be able to analyze the tiniest details in video, audio and image files to determine what’s real and what’s not. Further, cybersecurity teams must deal with the sheer volume of data that needs to be analyzed. The growing use of digital channels in financial services means that there are more opportunities for deepfake attacks. From online loan applications to customer service interactions, every touchpoint is a potential target for fraudsters.

Another challenge is that deepfakes can spread quickly online. If someone creates a deepfake video claiming that a bank is in trouble or that a new way to make money is guaranteed, it could go viral. People might panic or be tempted to hand over their money without checking if it’s true.

What can we do to stay safe?

Even though deepfakes are a big problem, there are ways to protect ourselves and our money. Here are some simple steps:

• Be skeptical: If something seems too good to be true or just doesn’t feel right, take a moment to think before acting. Whether it’s a video, phone call or email, always double-check the information before you share any personal details.
• Use strong verification methods: Instead of relying only on passwords or PINs, use multi-factor authentication (MFA) whenever possible. This means adding extra steps, like entering a code sent to your phone or scanning your fingerprint. It makes it harder for scammers to break into your accounts.
• Educate yourself and others: The more you know about deepfakes and how they work, the better you’ll be at spotting them. Share this knowledge with your friends and family, so they’re aware too.
• Report suspicious activity: If you come across a video, call or message that seems fake, report it to your bank or the company involved. The faster they know about it, the quicker they can take action to protect others.
• Stay updated on security news: Cybersecurity is always changing, and new threats pop up all the time. By keeping up with the latest news, you’ll know what to watch out for and how to protect yourself.

The future of AI and financial safety

AI technology is here to stay, and it’s going to keep getting better and better. This means we need to be extra careful about how we use technology and how we protect ourselves from scams like deepfakes.

Banks and financial institutions are working hard to find new ways to detect and stop deepfake fraud. They’re using advanced tools that can tell the difference between a real person and a fake one, even if the deepfake is super convincing. But it’s a constant race to stay ahead of the scammers.

Let’s be smart about deepfakes

Deepfakes are a threat that we all need to be aware of. While they’re definitely clever, they can also be dangerous if we’re not careful. By learning more about how deepfakes work and taking steps to protect ourselves, we can stay one step ahead of scammers.

Remember, if something doesn’t seem right, trust your instincts. It’s always better to be safe than sorry when it comes to your money and personal information. Let’s work together to keep our finances secure in this fast-changing digital world.

Sources:
1. Goodfellow, I., et al. (2014). "How AI Creates Deepfakes." Advances in Technology.
2. Chesney, R., & Citron, D. (2019). "The Risks of Deepfakes in Today’s World." Tech Trends.
3. Henry, L. (2020). "Spotting Deepfakes: A Guide to AI Detection." Journal of Cybersecurity.
4. European Union Agency for Cybersecurity (ENISA). (2020). "Challenges in AI Cybersecurity."
5. Federal Trade Commission (FTC). (2021). "AI and How It’s Changing Fraud."