Crypto Companies Losing Ground to Deepfakes

While this particular study talks specifically about cryptocurrency companies, the trends are obvious and the impact to you and me are, unfortunately, similar.

First what the crypto folks are seeing.

57 percent of crypto companies report audio deepfake incidents.

53 percent of crypto companies have encountered video deepfake fraud.

This points to the very rapid evolution of technology and what it means to businesses.

The average loss is $440,000 from “advanced fraud techniques” like deepfakes.

For 37 percent of companies the losses are more than $500,000 each.

If we assume the hackers are going where the money is, that probably explains the focus on crypto companies. In addition, most crypto companies subscribe to the “move fast and break things” business model, even if the breaking part refers to their customer’s wallets.

You should assume that your company may get swept up in the deepfake craziness because as it becomes easier to make them, the fraud is going to encompass more companies, even if that means a lower return on “investment”.

What are crypto companies doing? They are forcing customers to enable multifactor authentication, using facial biometrics and fingerprint biometrics and liveness checks.

They are also requiring live video interviews in some cases.

The industry is saying that deepfake attacks have surpassed traditional attacks.

So what does this mean for you?

As a customer, either a business customer or a consumer customer, it means more friction. Friction when setting up an account and friction using an account. Companies have traditionally tried to reduce the steps and complexity (friction) associated with doing business with them. Now they are realizing that the reduction strategy was a gift to hackers. Therefore, expect more checks. Expect more invasive checks. Expect more hassle as a customer.

But equally important, what does this mean for you as a business manager or owner? It means that you should expect more fraud and more sophisticated fraud. That means that the traditional security measures that you have used are not going to stop the new forms of fraud. Assume you are going to have to use more invasive forms of fraud prevention and assume that this will cause more consumer concern – that you will have to explain to consumers.

And also understand that the hackers hope that you choose not to do anything about this. In fact, they are counting on your resistance to change to work in their favor.

If you need help with this issue, please contact us.

Credit: Helpnet Security

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