Businesses lose millions of dollars thanks to deepfake scams

October 22, 2024

A recent study by Mastercard and AI expert Stacey Edmonds reveal that Kiwi businesses and consumers lost tens of millions of dollars in the last 12 months to deepfake and AI scams.

Deepfake scams are utilising AI to manipulate images, video and audio to defame individuals and trick them into losing money and disclosing information; this has affected at least 18% of Kiwi businesses and 29% of consumers.

These deepfake scams can contain impersonations of celebrities such as former US President Donald Trump, Taylor Swift and even New Zealand’s very-own Hilary Barry.

This has led to a loss of 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,” says Mallika Sathi, Vice President, Security Solutions, Australasia at Mastercard.

Of the 29% of consumers targeted by a deepfake scam, 10% fall for the manipulation and lose money.

But it is not just about falling for the scams, Mastercard reveal that 25% of Kiwis do not have protective measures in place for deepfake scams.

“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,” adds Sathi.

“As deepfakes can be utilised in many different types of scams, including video, images and audio, we encourage Kiwis to remain informed, vigilant and educated as the threat increases with the development of AI technology.”

But the businesses who have been tricked by deepfake scams are 38% of customer service, 29% of client services and 26% of suppliers and vendors.

In order to prevent these scams from happening, Mastercard encourage putting safety measures up.

This includes identification verification, cybersecurity training and education on identifying deepfake and AI scams.

“Scammers have become more brazen and sophisticated, taking advantage of the latest technologies like AI and other means to deceive consumers,” says Sathi.