A finance worker at a multinational Hong Kong company was scammed into paying $25 million to fraudsters who utilized deepfake technology to mimic the company’s chief financial officer in a video conference call, as per the Hong Kong police.

The sophisticated scam involved the worker attending a video call that he believed was with several other members of staff but was, in fact, with deepfake replicas, as explained by senior superintendent Baron Chan Shun-ching in a briefing on Friday.

The worker received a message that appeared to be from the company’s UK-based CFO, asking him to perform a secret transaction. At first, the worker thought it was a phishing email. However, after the video call, he was convinced that everyone else in attendance was genuine, as they looked and sounded like his colleagues, even though they were deepfake replicas.

Unaware of the scam, the worker remitted $200 million Hong Kong dollars, which equates to $25.6 million, according to the police officer.

This case is one of several recent incidents in which fraudsters have employed deepfake technology to manipulate publicly available videos and other footage to deceive people and steal their money. With the use of AI and deepfakes, fraudulent practices have taken on a new dimension.

CEO fraud is a major issue for company leaders. In this type of fraud, criminals impersonate top executives to manipulate unsuspecting employees, especially those handling financial matters, into making unauthorized bank transfers. Often, they create a sense of urgency or confidentiality and put significant pressure on the colleague responsible for the transfers.

In the era of AI, CEO fraud could become even more prevalent due to the widespread use of deepfakes. These involve the manipulation of video or audio recordings using AI technology, raising concerns about misinformation and misuse, including deepfake content featuring individuals saying things they never actually said.

As we become increasingly reliant on AI for various applications, the flip side of this technological advancement is the escalating threat landscape in cybersecurity. According to a recent survey, most Chief Information Security Officers (CISOs) expect a shift in the threat landscape, with 46% indicating that AI and machine learning are the most significant cyber risks. Experts anticipate higher levels of cyber risks as AI technology advances, enabling hackers to improve their tactics, speed, and reach. Hackers are also utilizing generative AI to create more sophisticated malware and convincing phishing emails, making them increasingly difficult to detect. Keeping pace with these evolving threats requires innovative cybersecurity measures to stay one step ahead.

Investing In Cybersecurity
Driven by several factors that highlight the ever-increasing importance of protecting data and digital infrastructure, the cybersecurity sector is expected to be a crucial component of the US economy next year. This is due to various factors, including:

1. The rise in cybercriminals who are becoming more skilled at exploiting vulnerabilities and developing new attack methods. As a result, businesses and organizations need to stay ahead of the curve and implement effective cybersecurity measures. This is driving the demand for advanced cybersecurity solutions, such as threat detection and prevention systems, data encryption tools, and security awareness training.

2. More businesses and organizations are shifting to online platforms and adopting cloud-based technologies. This means that the number of potential cyberattack targets is increasing, which calls for comprehensive cybersecurity strategies that encompass network security, endpoint security, and cloud security.

3. Cyberattacks can have catastrophic financial consequences for organizations, resulting in data breaches, operational downtime, and reputational damage. This compels businesses to invest heavily in cybersecurity to safeguard their assets and reduce the risk of costly cyber incidents.

It has been reported that businesses are taking cybersecurity seriously as more than two-thirds of IT security decision-makers have witnessed an increase in cybersecurity budgets for 2024. According to a new forecast from Gartner, Inc., worldwide end-user spending on security and risk management is anticipated to reach $215 billion in 2024, which is a 14.3% increase from 2023. Furthermore, it is estimated that global security and risk management end-user spending was over$188.1 billion in 2023.