A multinational firm headquartered in Hong Kong fell victim to a deepfake scam, resulting in a staggering loss of HK$200 million (US$25.6 million) (via South China Morning Post).
The elaborate scheme involved scammers employing advanced deepfake technology to convincingly impersonate key company figures in a video conference call, ultimately tricking an employee into making significant unauthorized transfers.
The perpetrators meticulously recreated the company's chief financial officer and other participants, making the entire video call, except for the targeted employee, a digital fabrication.
Multinational Firm Loses $25M in Elaborate Deepfake Scam Impersonating CEO and CFO
Multi-Million Deepfake Scam
This incident is the first in Hong Kong, raising concerns about cybercriminals' evolving tactics using deepfake technology.
It emphasizes the potential risks posed by deepfake technology, which has previously received attention for generating fake explicit images of celebrities such as Taylor Swift.
The employee who initiated the police report, working in the finance department, received a phishing message in mid-January. The message purportedly came from the company's CFO based in the UK, instructing the victim to carry out a secret transaction.
Despite an initial moment of doubt, the employee proceeded with the scam after being lured into a group video conference where the digitally recreated CFO and other seemingly legitimate participants were present.
During the week-long ordeal, the victim made 15 transfers totaling HK$200 million to five Hong Kong bank accounts as instructed during the fraudulent video conference.
It was not until the victim made inquiries with the company's headquarters that the elaborate scam was exposed, revealing that the scammers had digitally fabricated the entire meeting.
Investigations by the police unveiled that scammers utilized publicly available video and audio footage to create convincing deepfake representations of the targeted individuals.
The use of deepfake technology extended beyond video calls as the scammers can obtain contact through instant messaging platforms, emails, and additional one-on-one video calls with other employees in the branch.
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Cybercrime and Deepfake Technology
This incident sheds light on the expanding threat landscape associated with deepfake technology, prompting the Hong Kong police to issue a public warning.
Authorities emphasize the need for vigilance, suggesting ways to verify the authenticity of individuals in video calls and expanding an alert system to cover the Faster Payment System (FPS) for potential scam transfers.
Recent global trends indicate a significant surge in its use for fraudulent activities. Data from Infosecurity Magazine tells us that the increase in North America and Asia-Pacific in 2023 compared to the previous year is alarming, with identity fraud cases rising substantially in the Middle East, Africa, and Latin America. Notably, the cryptocurrency sector remains a prime target, comprising 88% of all deepfake cases detected in 2023.
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