From Fraud to Deepfraud: How To Protect Your Business from AI Scammers

In January 2024, the deepfake videos of Taylor Swift on social media made headlines around the world, shining a spotlight on the dangerous potential of AI deepfakes, and their close relative, deepfraud.

This insidious practice involves the use of AI to forge online business documents like price quotes, invoices, emails, IBAN bank account details and more. Just as deepfakes are used to create fake video or audio that deceives, deepfraud takes it farther – using AI fakes to mislead businesses for criminal gain.

A prime example of deepfraud is the "Fake President fraud" scheme. In February 2024, a financial worker at a major Hong Kong multinational was duped into wiring $25.6 million to cybercriminals. They used deepfake AI technology to pose as the company’s chief financial officer and other employees in a highly plausible video conference call. And this company was not the only target: several major internationals have been public victims of this scheme, while many other businesses have been silent victims of deepfraud, keeping quiet for fear of reputational damage. 

In another case, a deepfake audio recording of a CEO of a parent company in Germany was used to order an urgent wire transfer from its UK subsidiary to a supplier in Hungary. “Business email compromise”, in which scammers gain unauthorized access to emails with the goal of stealing data or account details, is increasingly a threat. This includes the fake invoice approach, where the accounting team receives a fraudulent supplier invoice that looks remarkably like the real thing – even the account number is almost identical. Naturally, they think nothing of wiring payment to that online account.

The creativity and cunning of fraudsters knows no bounds, and they are helped by cutting-edge AI-powered techniques that rapidly churn out fake videos, voice recordings, images, and text.

However, amidst this menacing landscape of deepfakes and deepfraud, there is a beacon of hope:  blockchain proofkeeping for business. This innovative solution offers businesses a robust defense against deepfraud by enabling them to blockchain notarize every document they share with business counterparts. Here's how it works:

• Anchoring Documents on the Blockchain: With blockchain-based proofkeeping, businesses can securely anchor every document they generate or receive onto the blockchain. This process creates a tamper-proof record of the document's authenticity and ensures its integrity over time.

• Verification through QR Codes: To verify the authenticity of a document, recipients can simply scan a QR code provided by the sender. This QR code retrieves blockchain-anchored proof of authenticity, reassuring individuals of its legitimacy.

• Protection Against Fraudulent Alterations: Any attempt to tamper with or alter a document after it has been anchored on the blockchain will be immediately detected, as the blockchain's immutable nature ensures that the original document remains unchanged. 

• Enhanced Trust and Transparency: By adopting blockchain proofkeeping, businesses can foster greater trust and transparency in their interactions with counterparts. Stakeholders can have confidence that the documents they receive are genuine and have not been manipulated or falsified.

• Mitigation of Financial Losses: By preventing fraudulent transactions and unauthorized payments, blockchain proofkeeping helps businesses avoid financial losses associated with deepfraud schemes.

As the threat of deepfraud looms ever larger, businesses should look at proactive measures to protect themselves and their stakeholders, or face the consequences. Blockchain proofkeeping made possible by platforms such as Carmentis offers a powerful defense against deepfraud. By enabling businesses to securely certify and verify the authenticity of documents, the chances that an employee will fall for a fake invoice or voicemail are reduced to zero. By embracing blockchain proofkeeping, companies can protect their interests, maintain trust and mitigate the risks of doing business online.

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