Page 45 - Banking Finance December 2024

ARTICLE

Audio-Visual Mismatch: Deepfakes sometimes struggle
to synchronize audio and video. Hence a bit of attention
to identify whether the lip movements match the audio
perfectly will help in spotting deepfake video.

AI and Deep Fake Technology and its
impact in the Banking Industry
The impact of AI & Deepfake is both transforming and
devastating for the Banking and financial sector. AI may be
considered a boon for the banking Industry and has the ability
to perform tasks that normally require human intelligence-
such as speech recognition, image analysis, decision-making,
and natural language processing.
information or transferring money. In many occasions they
AI and deep fake technology can be used for both good and manipulate the market, influence the public opinion or
bad purposes in the banking industry. On the one hand, they damage the reputation of banks or competitors by creating
help the banks to enhance their customer experience, fake news, reviews, or social media posts using deepfake
efficiency, and profitability. For example, some banks use AI- technology.
powered chatbots or voice assistants to provide 24/7
customer service, respond to queries, expert advice, and Deep fake threat/fraud in Banking
execute transactions.
sector

Banks use Artificial Intelligence and machine learning in In recent times, deepfakes, which can produce highly
analysing customer data, behaviour and preferences, and realistic yet fabricated videos and audio, have emerged as
thereby offer personalized and tailored products and a significant threat to the banking industry. While they hold
services. AI and deep fake technology is often used to train the potential for creative applications, their misuse has
Bank’s employees by using virtual reality or augmented already led to substantial financial losses and has raised
reality to simulate real-life scenarios or situations etc. The serious concerns about the security of digital financial
technology is also used to create realistic and engaging systems.
marketing campaigns such as using celebrities or influencers Fraudulent Transactions: One of the most concerning
to endorse their products or services. aspects of deepfakes is their potential to facilitate
fraudulent transactions. By impersonating customers
On the adverse side, deepfake technology can give rise to through convincing video or voice calls, fraudsters can
significant risks and challenges to the industry such as deceive bank employees into authorizing unauthorized
increasing cyberattacks, attack on data privacy & data transfers or withdrawals.
protection, breach of trust and other severe unethical issues.
Identity Theft: Deepfakes can be used to create fake
identities, making it easier for criminals to open
Fraudster are using AI and deepfake technology for malicious accounts, apply for loans, or access sensitive financial
and fraudulent purposes in the banking industry. For information.
instance, some cybercriminals create fake identities,
documents or biometrics using AI and deep fake technology Reputation Damage: using fake videos and audios of
and mis-use them to open accounts, apply for loans, or Bank’s executive/ employees, deepfake can cause
unauthorised access of funds. significant reputational harm, leading to a loss of trust
among customers and investors.

Using AI and deepfake technology, Cybercriminals create Market Manipulation: The spread of false information
fake websites, emails, or phone calls and lure the customers through deepfakes can manipulate stock prices and
or employees into revealing their personal or financial create instability in financial markets.

40 | 2024 | DECEMBER | BANKING FINANCE