Multinational Firm Loses $25M in Elaborate Deepfake Scam Impersonating CEO and CFO
February 06, 2024 By Aaem Joshi
(Image Credit Google)
A global business headquartered in Hong Kong has begun to collapse. It was a shocking turn of incidents as a Hong Kong-based corporation has fallen victim to an enormous deepfake fraud, resulting in a massive financial loss of HK$200 million (US$25.6 million). This is the first incidence of its sort in Hong Kong, and it demonstrates the growing strategies used by hackers employing deepfake innovation. The repercussions of this fraud raise worries about the potential perils of deepfakes, highlighting the need for increased security and alertness in the digital era.
The perpetrators of this deepfake fraud displayed a certain level of proficiency that has rarely been seen before. They orchestrated their fraudulent actions by effectively impersonating key firm employees using powerful deepfake technology. The fraudsters methodically rebuilt the company's chief financial officer (CFO) and other participants, transforming the whole video conference call, with the exception of the targeted employee, into a digital fabrication.
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The unfortunate victim in this case was an employee working in the finance department who got a phishing message in mid-January. The message appeared to come from the company's CFO based in the UK, instructing the victim to carry out a secret transaction. Initially hesitant, the employee was eventually tricked into a gathering video conference where the digitally recreated CFO and other seemingly legitimate participants were present.
In more than seven days, the victim made 15 transfers totalling HK$200 million to five Hong Kong bank accounts as instructed during the fraudulent video conference. It was only when the victim reached out to the company's headquarters to inquire about the transactions that the elaborate scam was exposed, revealing the degree of the digital fabrication.
Upon investigation, the police discovered that the scammers had used publicly available video and audio footage to create convincing deepfake representations of the targeted individuals. This highlights the alarming ability of cybercriminals to take advantage of digital media to carry out fraudulent activities. It is important to note that the use of deepfake innovation reached out beyond video calls, as scammers could also contact employees through instant messaging platforms, emails, and additional one-on-one video calls.
Deepfake innovation poses a significant threat, and it is crucial to remain vigilant and adopt high power security measures. The Hong Kong police have issued a public warning, emphasizing the need to confirm the authenticity of individuals in video calls and expanding alert systems to cover potential scam transfers through the Faster Payment System (FPS).
Late global trends indicate a concerning surge in deepfake innovation's use for fraudulent activities. Personality fraud cases have risen substantially across North America, the Asia-Pacific region, the Center East, Africa, and Latin America. Notably, the cryptocurrency sector remains an ideal objective, with 88% of all deepfake cases recognized in 2023 involving cryptocurrency.
The deepfake scam that prompted the multinational firm's loss of $25 million highlights the increasing threat posed by cybercriminals who exploit advanced innovation for fraudulent purposes. It is a reminder to individuals and organizations to exercise caution, carry out security measures, and stay informed about emerging digital threats. As innovation continues to advance, the risks associated with cyber threats like deepfake innovation also rise.
By Aaem Joshi
I am a Journalist who loves digging up stories that remain unheard. Strongly Believe in the knowledge of the social world.
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