Deepfake scams – those that utilise deepfake technology to manipulate video and audio to defame individuals or trick them into losing money and disclosing personal information – are increasingly prevalent.
New research commissioned by Mastercard shows one in five (20%) Australian businesses and around one-third (36%) of Australian consumers have been targeted by deepfake scams in the last 12 months, with losses estimated to be tens of millions of dollars.
However, given many victims of these scams are not aware that they have been targeted, this is potentially only the tip of the iceberg, according to Mastercard Australasia vice president of security solutions, Mallika Sathi.
“Generative AI technology, while offering incredible potential, can be harnessed in both beneficial and concerning ways. Increasingly we see it is being used to manipulate consumers and businesses out of money in the form of scams involving deepfakes,” she said.
“As deepfakes can be utilised in many different types of scams, including video, images and audio, we encourage Australians to remain informed, vigilant and educated as the threat increases with the development of AI technology.”
While at least 36% of Australians have been targeted by a deepfake scam in the last year, of those targeted, 22% fell for the manipulated content and lost money to the scams. Out of those who were scammed, nearly half (48%) admitted to not reporting it. Over one-third of those targeted (36%) report an attempt to trick them out of a non-financial loss, such as identity theft or personal data.
The research also found trust in digital platforms has fallen in the year gone by. Around two-thirds (60%) of Australians are less trusting of social media, while half (47%) are less trusting of phone calls and 46% messaging services.
Mastercard’s research shows at least 20% of Australian businesses have been targeted by the scams in the last 12 months. Of those, 12% have fallen for the manipulated content.
To trick businesses out of money, the deepfake scams reported in the research commonly posed as customer service (44%), clients (38%) and suppliers/vendors (34%). Employees, CEOs, board members, and law enforcement were also impersonated in scams.
Among Australian businesses, 45% provide their team with cybersecurity training and 43% have implemented identification verification to access sensitive information. Around one-third (34%) have conducted financial transaction training and 29% have implemented identification protocols for payment requests. 16% report nottaking any measures to protect against deepfake scams.
However, with 19% of business decision makers lacking confidence that staff can detect deepfake scams, there remains a need for improved digital literacy.
“Scammers have become more brazen and sophisticated, taking advantage of the latest technologies like AI and other means to deceive consumers. Mastercard is committed to providing Australians with the insights and tools to help protect themselves and their loved ones from scams,” Sathi said.