On November 13, 2024, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) sounded the alarm on a growing and insidious threat: fraud schemes leveraging deepfake media created with generative artificial intelligence (GenAI) tools.
This innovative technology is being weaponized by bad actors, and FinCEN’s alert aims to empower financial institutions with critical insights and tools to combat this escalating risk. Specifically, the alert:
- Classifies Fraud Schemes: Offers detailed explanations of the types of deepfake-enabled schemes threatening financial systems today.
- Identifies Red Flags: Highlights actionable indicators to help financial institutions detect and report suspicious activity tied to deepfake media.
- Reiterates Reporting Obligations: Underscores the importance of compliance with reporting requirements under the Bank Secrecy Act (BSA).
Since 2023, FinCEN has noted an increase in suspicious activity reported by financial institutions indicating the suspicion that deepfake media is being used in fraud schemes that target their institutions and customers. These schemes often involve bad actors who alter or create fraudulent identity documents to dodge identity verification and authentication methods.
Deepfake media for fraud schemes is one of several risks seen in emerging GenAI technologies that institutions and their customers may face – and the abuse of deepfake and GenAI media contribute to escalating and ever-increasing fraud and cybercrime.
Can You Trust What You See? The Challenge of Deepfake Media
In a world where deepfake media blurs the line between reality and fabrication, how can agencies be sure people are who they say they are? Unfortunately, agencies that are lagging behind in understanding the latest AI and GenAI-driven threats face significant vulnerabilities. Without proactive measures, they risk falling victim to sophisticated identity fraud schemes—and potentially suffering devastating cyber breaches.
Malicious AI and GenAI can be used for sophisticated forms of identity fraud using:
- Deepfake videos.
- Voice-cloned audio clips.
- High-precision fake IDs and other documents.
For agencies, identity fraud brings risk of financial losses and spread of misinformation, as well as the undermining of public trust and legal issues.
Detect and Mitigate Cyber Attacks and Identity Fraud
Fortunately, LexisNexis® Risk Solutions can help agencies decrease risk by revealing various types of fraud to identify vulnerabilities and implement solutions. We can help expose deepfakes and mitigate generated image fraud by:
- Detecting Signs of Device Compromise: Identify hidden vulnerabilities and risks that indicate devices may be compromised or manipulated.
- Spotting Identity Anomalies: Perform advanced checks to uncover multiple identities linked to a single device, exposing fraudulent patterns.
- Unmasking AI-Driven Fraud: Detect sophisticated schemes involving text and audio generation fraud crafted by AI tools.
- Discerning Deepfake Videos: Analyze frame-by-frame sequences to distinguish authentic video content from digitally fabricated deepfakes.
- Enhancing Risk Detection with Behavioral Analysis: Integrate real-time behavioral assessments during online sessions to uncover risks associated with synthetic identities and suspicious activity.
Taking a comprehensive, long-term approach to agency identity is not just important—it’s essential.
Let us guide you every step of the way.
In an era where technology evolves at lightning speed, the threats posed by deepfake media and generative AI demand immediate attention. Financial institutions and agencies must rise to the challenge by implementing robust strategies to detect and mitigate these sophisticated fraud schemes. Staying ahead means more than just reacting; it requires foresight, advanced tools, and a commitment to protecting identities, systems, and customers. Don’t let bad actors exploit vulnerabilities—empower your organization to fight back. Together, we can safeguard the future, ensuring security and trust in a rapidly changing digital world. Let’s take the first step—because the stakes have never been higher.
LexisNexis EssentialID™ is a seamless identity proofing process, providing unrivaled global network insights, speed, security, transparency, and data-sharing capabilities – powered by our own innovative solutions. Contact us to learn more about we can help your agency redefine the landscape of identity verification by instilling the assurance required to thrive in the digital era.
