Evolving AI-based techniques pose new security challenges .

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As deepfakes become more advanced , businesses across all industries must reconsider their security strategies to address one of the most serious forms of identity fraud in today ’ s landscape .

Over 1,200 respondents from the financial and payment sectors across seven European countries , including the UK , stated that account takeover is the leading type of fraud their customers are exposed to , followed by card payment fraud and phishing .

The study , the first to focus on AI-driven identity fraud , highlights that deepfake technology has become one of the three most common types of identity fraud in the financial and payments sector

Fraudsters are using AI-based techniques that traditional systems can no longer fully detect . across Europe . Deepfakes use Artificial Intelligence to create highly realistic digital forgeries . Their rapid growth is prompting urgent discussions about improving companies ’ fraud prevention capabilities .

Deepfake Fraud : Presentation vs . Injection Attacks

The evolving deepfake technology has enabled two main types of attacks :

1 . Presentation attacks include fraudsters wearing masks and makeup to spoof another person , but also where the camera films another screen showing a deepfake in real-time , targeting activities such as account takeovers or fraudulent loan applications .

2 . Injection attacks : In these cases , malware or untrusted input is deliberately inserted into a program , compromising its integrity or functionality for example as pre-recorded videos , often during onboarding or KYC processes that banks , fintech companies , or telecommunications companies are subjected to .

As these techniques become more sophisticated , traditional fraud detection systems may struggle to handle this evolving threat .

Deepfakes : A Growing Concern in Financial Fraud

According to Signicat ’ s report , 42.5 % of fraud attempts detected in the financial sector are now due to AI . Three years ago , deepfakes were not even in the top three most common types of digital identity fraud , and today it is the most common type of digital identity fraud faced by companies . These forgeries have become more widespread and harder to identify , which has contributed to their rise as one of the main methods of identity fraud .

Delay in fraud detection tools as threats increase

Despite the increase in AI-driven fraud attempts , including deepfakes , only 22 % of financial institutions have implemented AI-based fraud prevention tools . This gap leaves many companies vulnerable to more sophisticated attacks .

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