India, along with Bangladesh and Pakistan, is among the top ten countries in Asia-Pacific most affected by identity fraud that is committed using deepfake technology, according to a leading digital identity verification firm. The UK-based Sumsub Identity Fraud Report says 2023 recorded a significant rise in such cybercrimes, which will increase further next year. Vietnam leads the region with 25.3 per cent of the total deepfake identity frauds, followed by Japan at 23.4 per cent, Australia at 9.2 per cent, China at 7.7 per cent, and Bangladesh at 5.1 per cent, according to the data derived from an analysis of over two million fraud attempts in 224 countries and territories across 28 industries.The report highlights a global surge in deepfake content, with North America experiencing a 1,740 per cent increase and the Asia-Pacific region a 1,530 per cent rise compared to the previous year. There was also a significant rise in the Middle East, Africa, and Latin America. The cryptocurrency sector is particularly susceptible to deepfake fraud, accounting for 88 per cent of incidents in 2023, with fintech following at eight per cent. Other prevalent fraud techniques in 2023 include money muling, fake IDs, account takeovers, and forced verification, the last of which saw a 305 per cent increase since 2022.The report also identifies two emerging trends in identity fraud: a rise in forged documents from developed economies and an increased targeting of non-regulated entities due to the absence of stringent regulatory frameworks.HOW IS AI MISUSED FOR IDENTITY THEFT?Fraudsters exploit deepfake technology to circumvent biometric authentication, enhance social engineering tactics, and bypass fraud detection systems. Their methods involve creating synthetic biometric data, using realistic chatbots, and deepfake videos for impersonation, producing counterfeit documents, and manipulating AI algorithms.PREVENTIVE MEASURESExperts recommend companies implement stronger identity security measures, including robust Know Your Customer (KYC) protocols, secure data storage, strong authentication methods, regular training and awareness programs, transaction monitoring, vendor vetting, updated security systems, incident response planning, physical security measures, and regular audits and reviews.Currently, many companies primarily rely on the KYC process to thwart fraud attempts. However, Sumsub CEO Andrew Sever warns, “Our internal stats show that an alarming 70 per cent of fraud activity occurs past the KYC stage, indicating that KYC checks alone are no longer sufficient.”Frances Zelazny, CEO of biometric authentication platform Anonybit, states, “The fact is that 100 per cent of fraud is happening inside KYC-ed accounts and also within authenticated sessions. It’s time for a new approach that eliminates centralized data stores and leverages persistent biometrics throughout the identity management lifecycle — from digital onboarding to the point of service and account recovery — while balancing privacy, security, usability, and cost.”Industry leaders believe that the design and use of AI could be the most effective method to combat illegal activities involving AI and deepfakes. Transmit Security, a US-based cybersecurity company, suggests businesses to enhance their defences against deepfakes and bolster identity security by using AI to detect adversarial attacks and other AI-based fraud tactics.Published By: Sahil SinhaPublished On: Dec 5, 2023Must Watch
India among top targets of deepfake identity fraud
