Company defrauded of $25 million by Deepfake technology

Wednesday, 07/02/2024, 10:57 (GMT+7)

Company had to pay $25 million after Deepfake technology simulating CFO tricked employees into paying staggering amounts of money.

In a shocking incident, a company in Hong Kong has been losing a staggering $25 million due to the Deepfake technology. 

This incident highlights the growing concern surrounding the purpose of AI-generated deepfakes and the warning when facing these cyber threats.

A Hong Kong company became a victim of a technology scam, causing them to lose $25 million.

According to reports, someone used Deepfake to impersonate the company's chief financial officer and trick the company's employees into paying huge amounts of money.

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A company suffered a loss of $250 after being scammed by Deepfake technology. Image Credit: Getty

The company shares that the images in the video are very realistic and look exactly like a human being, so it is easy to commit fraud.

Baron Chan, the senior director, said the Deepfake user instructed the company secretary to make 15 transactions to local bank accounts totaling up to $25 million.

According to investigators, the deepfake used in this scam appears to have been generated using footage from previous authentic online conferences involving company staff.

During the incident, which took place in a multi-person video conference, it was revealed that all the participants were fake. 

Baron Chan speculated that the fraudster had pre-downloaded videos and utilized AI technology to manipulate voices, creating a deceptive environment. 

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The deepfake user posed as the company's chief financial officer to request worker a $250 million transaction. Image Credit: Getty

Unfortunately, the worker believed the call to be genuine carried out the instructions, and authorized the $25 million transaction.

The company also revealed that this is not the first case, a number of other employees have also become targets of Deepfake.

So far no arrests have been made. Hong Kong police are continuing to investigate and encourage people to verify contact information carefully before making transactions.

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The meeting videos with the people on the video were all faked based on the employees' faces to fool their eyes. Image Credit: Getty

Previously, Taylor Swift also became a victim of deepfake pornographic photos created by AI. She is currently fighting against anonymous people with legal actions.

What is Deepfake?

Deepfake is a term that refers to the use of artificial intelligence (AI) to create manipulated or altered media, such as videos or images, that appear genuine but are synthetic or modified. 

It involves using AI to replace or superimpose faces or voices onto existing content, often resulting in highly realistic.

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Due to the realism of deepfake technology, the Hong Kong company was defrauded of a huge amount of $250 million. Image Credit: Getty