The Evolving Threat of Synthetic Media
Advances in artificial intelligence (AI) have ushered in a new era of synthetic media, where realistic videos, images, and audio can be generated or manipulated with unprecedented ease and accuracy. These so-called “deepfakes” and other forms of AI-generated content pose a growing threat to the financial sector, as cybercriminals and bad actors seek to exploit this technology for malicious purposes.
Deepfakes refer to media that realistically depict people saying or doing things they never said or did, often by swapping one person’s face or voice onto another’s. While the technology behind deepfakes has evolved rapidly, the malicious use of synthetic media is not limited to video manipulation alone. AI can also be used to generate convincing fake images, audio, and even text, all of which can be leveraged to deceive and defraud.
The financial industry, with its reliance on trustworthy information and secure transactions, is a prime target for these emerging threats. Synthetic media can be weaponized to enable a wide range of financial crimes, from identity theft and impersonation scams to stock manipulation and undermining of regulatory oversight. As this technology becomes more accessible and sophisticated, the potential for harm only grows.
Synthetic Media Scenarios: Threats to Individuals, Companies, and Markets
Analyzing the ways in which synthetic media could be abused in the financial sector reveals a concerning landscape of potential attacks. The source materials outline ten distinct scenarios, each highlighting how deepfakes and other AI-generated content could be used to target different groups, from individual consumers to entire financial markets.
Targeting Individuals
Deepfake voice phishing, or “vishing,” is a particularly pernicious threat. Cybercriminals could use AI to clone a person’s voice and impersonate them in phone calls, tricking victims into revealing sensitive information or authorizing fraudulent transactions. This technique could be deployed against a wide range of targets, from elderly consumers to executives and financial advisors.
Synthetic media could also enable more personalized extortion schemes, with criminals generating fake images or videos of individuals to use as blackmail material. And business email compromise scams, a common form of fraud, could be made more convincing through the use of deepfake audio or video of company leaders.
Attacking Companies
Deepfakes pose a significant risk to companies, both financial and non-financial. Malicious actors could use synthetic media to manipulate stock prices, for example, by fabricating videos of a company’s CEO making damaging statements or admitting to misconduct. Even if quickly debunked, such deepfakes could still inflict lasting reputational damage and erode investor confidence.
Synthetic social media bots present another threat, as bad actors could use AI-generated profiles and content to create the false impression of widespread backlash against a company, leading to stock price volatility. These “synthetic social botnets” could be particularly difficult to detect and counter, as they would be designed to mimic authentic human behavior.
Destabilizing Financial Markets
Deepfakes could also be used to undermine the integrity of financial markets and regulatory structures more broadly. Fabricated recordings of central bank officials or financial regulators, for instance, could sow uncertainty and panic, potentially triggering flash crashes or other disruptive market events.
Synthetic media could also be employed in disinformation campaigns targeting the integrity of the electoral process, which could in turn impact financial stability. For example, a deepfake video purporting to show election fraud could erode public trust in the system and lead to market turmoil.
Combating the Synthetic Media Threat
Addressing the risks posed by deepfakes and other synthetic media will require a multifaceted approach involving technical, legal, and educational measures. Financial institutions, regulators, and policymakers must work together to develop effective strategies to mitigate these emerging threats.
Technical Solutions
One key aspect is the development of robust detection and authentication tools. The National Institute of Standards and Technology (NIST) has been tasked with establishing standards for identifying and labeling synthetic media, which will be crucial for enabling platforms and users to quickly verify the provenance of digital content.
Financial firms should also invest in advanced analytics capabilities to monitor for suspicious activity, such as coordinated social media campaigns or anomalous stock price movements that may indicate the use of synthetic media. Collaboration between the private sector and government agencies will be essential to stay ahead of evolving threats.
Legal and Regulatory Frameworks
Policymakers have begun to address the challenge of synthetic media, with several states and the U.S. Congress introducing legislation to combat its malicious use. The bipartisan COPIED Act, for example, would establish federal transparency guidelines for marking and detecting AI-generated content, while also providing legal recourse for those whose likenesses or creations are misused.
Regulators should also consider updating existing rules and enforcement mechanisms to address the unique risks posed by synthetic media. This could include enhanced disclosure requirements for financial firms and campaigns, as well as strengthened penalties for those who seek to deceive or manipulate the system.
Public Education and Awareness
Ultimately, combating the synthetic media threat will also require a concerted effort to educate the public. Raising awareness about the capabilities and risks of deepfakes and other AI-generated content is crucial, as even well-informed individuals can fall victim to these sophisticated deceptions.
Financial institutions, in partnership with government agencies and civil society groups, should spearhead public awareness campaigns to help consumers and investors recognize the telltale signs of synthetic media. Equipping people with the knowledge and critical thinking skills to identify and resist manipulative content will be a vital defense against these emerging threats.
Conclusion: Securing the Financial Sector in the Deepfake Era
The rise of synthetic media represents a significant challenge for the financial industry, as cybercriminals and bad actors seek to exploit this technology for illicit gain. By understanding the diverse scenarios in which deepfakes and other AI-generated content could be weaponized, financial firms, regulators, and policymakers can take proactive steps to safeguard the integrity of the financial system.
Developing robust technical solutions, updating legal and regulatory frameworks, and educating the public will all be essential in the ongoing battle against the malicious use of synthetic media. As the IT Fix blog, we are committed to providing our readers with the latest insights and practical guidance to help navigate this evolving threat landscape and protect the financial sector from the dangers of deepfakes and other deceptive content.
