Deepfake fraud: Threat in means of payment requires robust antifraud solution

Published on Dec 28 2022.

8 minutes reading

It is true that new types of scams continually appear and fraudulent payment, however, a specific modality has been keeping area managers on alert: fraudIt's for deepfake.

Increasingly advanced, deepfake fraud presents a real threat to players in the means of payment industry that still haven’t relied on a better solution to prevent it.

And what is scaling that type of risk? No doubt the advances in artificial intelligence and machine learning capabilities are the engines driving this type of fraud.

While new filters are built every day on social media in order to change features in a person captured by a camera or add elements to a footage, cybercriminals are leveraging technologies to bypass personal identification systems.

So it is not a coincidence that, according to experts, it’s never been so hard for organizations to confirm a real person’s identity online.

On the other hand, the good news is that more sophisticated and robust antifraud solutions increasingly robust and sophisticated are being developed, combining different technological resources to act in the identification and prevention of this type of crime in the financial market.

Keep reading and get a better understanding on deepfake fraud prevention!

Deepfake fraud: How it works

Deepfake fraud is a relatively recent movement. However, the fact that cybercriminals are able to quickly develop attempts to overcome identity barriers turns that risk into a key priority in preventing fraud .

By using deep learning and artificial intelligence tools, they can replicate a real person’s voice and image,, creating, for instance, a quite realistic video based on images and voice capturing.

Data provided by the startup Deeptrace shows that deep fake videos grew by 330% in the past few yearsIncreasingly complex cases have been reported—for example, the scam attempt targeted at the director at Binance, who had his image used by criminals to request payments to companies interested in being listed at his cryptocurrency broker.

However, apart from deepfake fraud through recorded videos, fraudsters can engage live in a voice or video call, as if the user had indeed engaged in it.

Applications like DeepFakeLive (open-source artificial intelligence software) enable the user to convert their face into someone else’s for videoconferencing and streaming. While also being used by hackers in fraud attempts, apps of that type have served false advertising and cloning for political parties.

Why this fraud mode poses a threat to the means of payment industry

Once the line between true or false has become more blurred, deepfake fraud presents a challenge even to technology giants and a threat to financial institutions and the means of payment industry.

According to iProov, 77% of all experts in cybersecurity in financial services agree that they’re worried about the potential in deepfake fraud. Also, they believe that the banking service and online payment industry is the one facing the largest risk in this context.

And rightfully so: the segment combines an enormous amount of assets and data from natural and legal persons, while also going through a major digitizing movement.

Deepfake can bypass systems of identity check and transaction authentication via face scan. In addition, it also can deceive liveness detection resources, which use algorithms to confirm if an engagement is genuine through the interlocutor’s movement, for example.

Facing such action, banks and other financial service providers that don’t have effective protection barriers in place can be affected—and damaged—in different aspects:

Payments and wire transfers falsely authorized;
Engagement processes can be frauded and result in new fraudulent accounts for money-washing;
Non-authorized system access;
Impersonation scams requesting action from associates; involving wire transfers or information sharing;
Insider tradingfor manipulating the industry;
New synthetic identities combining real information and fake data;
Account hijacking.

To prevent a deepfake threat, a robust antifraud solution is required

Although we’ve painted a very concerning picture in this article, there is good news for fraud managers. At the same pace that criminals are on the move to develop new types of threats, antifraud technology providers advance their solutions so that they can anticipate them.

Facing deepfake, a fraud mode involving highly refined technologies, you need to rely on sophisticated, robust solutions to fight it, which can, for instance, make a face scan and image capturing system basically immune to it.

And we’re not talking about one antifraud resource alone, but about a platform using a combination of technology tools that are capable of providing an effective response when detecting and preventing this type of threat.

That is the case of the solution we offer by partnering with FICO®—a global leading company in fraud prevention—and deliver for our clients through a business model that is fully innovative and accessible for companies of all sizes and segments.

The Dock platform is based on the best and most complete antifraud solution in the industry: the FICO® Falcon® platform, which can manage a high volume of transactions from highly sophisticated analysis models, based on customer behavior and artificial intelligence algorithms.

Today, FICO® protects two thirds of all cards used globally through three key modules:

Falcon Card:protects transactions using branded cards.
Falcon Banking:checks banking operations; such as wire transfers, pay slip payments, and now Pixtoo, thus making the antifraud solution even more necessary thanks to immediate transactions and a system that is available 24/7.
CCS® (Customer Communication Services):automates and orchestrates all real-time communication with customers across (SMS, push, email, WhatsApp, voicebot, and browser).

The Dock | FICO® solution brings all the benefits of the platform, while also offering a number of advantages:

Low upfront investment;
Pay-as-you-go model (billing per reviewed transaction);
Card brands of the entire industry;
Quick implementation (three to four weeks);
Unparalelled robust platform;
Technology intelligence and continuous learning;
Reduced response time.

As deepfake fraud rise in numbers, strengthening your protection becomes more than a security issue, but also a strategy for maintaining a good customer relationship and preventing financial and reputation loss.

Keeping it in mind and in alignment with our goal to contribute to decoding the financial universe and accelerating the banking movement in Latin Americawe created a contracting model that is effective and accessible for businesses of all sizes.

If you want to learn more about fraud prevention solutions at Dock, watch the video below:

Deepfake fraud: Takeways from this article

Deepfake fraud is increasingly advanced and can replicate a real person’s image and voice in video or audio real-time engagement in order to bypass protection when accessing financial services.
By using artificial intelligence and deep learningcriminals can bypass personal identification systems and pose a threat to the means of payment industry.
Due to how sophisticated deepfake fraud is, this mode requires a robust, intelligent antifraud solution like FICO®Falcon®platform, which Dock offers through an accessible business model.
Dock contributes to fighting fraud and, therefore, helps develop finance and banking and expand financial inclusion in Latin America.