Hong Kong-based Company Suffers Millions in Losses Due to Deepfake Scam
A Hong Kong company has incurred millions of dollars in losses due to a sophisticated deepfake technology scam.
According to media reports, the company's Chief Financial Officer (CFO), based in London, was contacted via video call by individuals impersonating him. They instructed the clerk to transfer funds to various bank accounts.
However, the 'CFO' turned out to be a digital avatar based on Artificial Intelligence (AI), resulting in the company losing over 7 billion dollars (more than 6.93 billion Pakistani rupees).
Perpetrators Utilize AI to Execute the Scam
While the company's name has not been disclosed by the police, authorities believe that some individuals downloaded old conference calls and used AI technology to create an avatar that appeared and sounded like the CFO.
Several contradictory reports have emerged regarding the presence of other individuals during the call, raising questions about their authenticity or potential involvement in the deepfake scam.
The clerk initially expressed doubts during the call, but the presence of the digital avatar convinced him mentally.
First-of-its-kind Incident in Hong Kong
It is believed to be the first incident of its kind in Hong Kong, where a company fell victim to fraud via a video conference using deepfake technology.
During a press conference held by local police, it was revealed that six arrests have been made following the incident, with some individuals previously using deepfake avatars based on AI.
It is important to note that deepfake technology allows easy manipulation of a person's face or voice, creating an illusion that they are someone they are not.
The Evolving Threat of Deepfake Technology
Initially, deepfake images or videos were relatively easy to detect, but the technology has since evolved significantly.
According to research conducted by Graphika in December 2023, there has been a 240% increase in links to apps of this nature on social media platforms like X during 2023.
Most services of this nature primarily operate using women's images, posing potential threats and causing issues for women on social media platforms.
Similarly, in August 2022, according to VMWare's Annual Response Threat Report, there was a 13% increase in the use of deepfake technology to alter faces and voices during 2021.
The report also highlighted a 78% increase in deepfake attacks in 2021, primarily targeting business offices' emails. Hackers disguised themselves to obtain sensitive information for this purpose.