Page 46 - Banking Finance December 2024

ARTICLE

Compromised KYC Processes: Know Your Customer Multi-Factor Authentication (MFA): Implement strong
(KYC) procedures, crucial for verifying customer MFA for all financial transactions and account access.
identities, can be bypassed using deepfake videos or This can include one-time codes, biometric verification,
voice recordings. or hardware tokens, making it much harder for
deepfakes to bypass security measures.
KYC Fraud using Deepfake technology: AI-Powered Detection Tools: Invest in advanced AI-
Video KYC: Fraudsters use deepfake videos to based systems specifically designed to detect deepfakes.
impersonate legitimate customers during video These tools can analyse minute inconsistencies in videos
verification calls. and audio that human eyes and ears cannot detect.
Image Manipulation: Deepfake technology is used to Investing in advanced and robust cybersecurity systems
alter or create realistic but fake images for identity and tools, such as firewall, antivirus, encryption,
documents. authentication, verification and blockchain to protect
data, networks, and systems from unauthorized access,
Synthetic Identity Fraud: Deepfakes can be combined
with other stolen or fabricated information to create manipulation, or disruption.
entirely synthetic identities. Implementing strict and clear guidelines, policies,
procedures and standards such as data governance,
Potential Solutions to counter deepfake privacy protection, ethical guidelines, and code of
conduct to regulate the use and management of AI and
KYC frauds deep fake technology, and to ensure compliance with
Advanced Biometrics: Implementing live detection and relevant laws and regulations.
other advanced biometric solutions can help to Collaborating and co-operating with other banks,
distinguish between real and fake identities.
industry associations, government agencies, law
AI-Powered Detection Tools: Leveraging AI to detect enforcement and civil society. Develop a framework to
deepfakes in real-time during KYC processes. monitor and detect emerging threats and trends and
Multi-Layered Security: Combining multiple verification to coordinate and support each other in preventing and
methods, such as document verification, facial recognition, mitigating AI and deep fake fraud. Share the best
and biometrics, can provide a stronger defence. practices, experiences, and insights among the several
stakeholders in order to develop a common standard.
Collaboration: Public-private partnerships and
collaboration between industry stakeholders can help
to share information, develop best practices, and stay Risk mitigating steps for Customers:
ahead of emerging threats. Educating and providing awareness to the customers-
educate the customers on benefits and risks of AI and
Deepfake-a growing concern deep fake technology, how to identify, report and

Deepfake financial fraud is a growing concern due to the
increasing sophistication of AI-generated videos and audio.

However, to mitigate the risk, several steps can be
implemented such as:
Risk mitigating steps for Banks & Financial
Institutions:
Employee Training: Employee education on a regular
basis about the existence and threat of deepfakes.
Provide them with resources to identify potential
deepfake attempts and establish clear protocols for
verifying the authenticity of communication, especially
when dealing with sensitive transactions.

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