The Dangers of Deepfakes and Digital Identity Fraud
Deepfake technology, powered by artificial intelligence, allows anyone to swap faces and voices in photos and videos to create highly realistic but completely fabricated visual and audio content. As this technology becomes more advanced and accessible, the threats of its misuse grow exponentially.
From revenge porn to fake news and financial fraud, this technology enables new forms of harassment, slander, and identity theft. The potential damage extends beyond individuals to organizations, governments, and society at large. We have already seen instances of deepfakes used for nefarious purposes, but experts predict far more severe attacks in the coming years.
To understand the dangers ahead, we must first understand what deepfakes are, why they work so well, and how criminals are using them today. With this foundation, we can then explore the specific threats this technology poses to personal identity and financial systems. Finally, we’ll look at countermeasures under development and steps individuals and organizations can take to mitigate their risks.
What Are Deepfakes and How Do They Work?
The term “deepfake” combines “deep learning” with “fake.” Deep learning is a type of machine learning that uses neural networks modeled after the human brain. With enough data and processing power, these networks can analyze and reproduce complex patterns and behaviors.
To create a deepfake, specialized algorithms study source images and video to mimic a person’s facial expressions, mouth movements, voice, and more. The synthesized content looks and sounds authentic because the algorithms have learned the subtle details of how that person talks, gestures, and changes expressions.
Right now, creating a compelling deepfake requires considerable technical skill. However, user-friendly apps are emerging that significantly lower the barrier to entry. For example, Zao offers a mobile app that lets users swap their faces into scenes from popular movies and TV shows with just a single selfie.
As these technologies become turnkey, high-quality deepfakes will be within anyone’s reach. This rapid evolution underscores the critical need for awareness and safeguards, as highlighted by the site about the power and promise of digital identity. Understanding both the potential and the risks of digital identity is essential as deepfakes blur the line between reality and deception.
Current Criminal Uses
To date, one of the most common and damaging uses of this technology has been to create nonconsensual intimate imagery. By splicing a target’s photo into an explicit video, the deepfake makes it appear they are performing sex acts. These fabricated videos allow domestic abusers, stalkers, and harassers to exploit victims online.
The threat also extends to public figures like celebrities and politicians. For example, the creators of 2018’s widely circulated “deepfake” video of Gal Gadot used existing footage to fake the actress’ face onto a porn star’s body. These videos aim to damage reputations and careers for financial or political gain.
In addition to fake pornography, deepfakes can create convincing but untrue footage of public figures making inflammatory remarks. Because even experts struggle at times to detect deepfakes, falsified video and audio can spread misinformation rapidly on social media and news outlets.
From sophisticated influence campaigns to simple online harassment, deepfakes lower barriers to slander, extortion, and fraud. As awareness, technical skills, and software improve, we will likely see this technology employed for identity theft, fraudulent transactions, and hoaxes that undermine public trust in institutions.
Threats to Personal Identity
Identity theft has troubled consumers and financial institutions for decades. Traditionally, criminals would steal someone’s wallet or mail to obtain information for fraudulent credit applications and spending. Today, data breaches provide mass quantities of names, social security numbers, birth dates and other valuable data.
This technology takes these schemes to the next level by allowing thieves to spoof biometrics used for authentication. For example, fraudsters could potentially use a deepfake voice recording to bypass voice recognition systems used by banks and other businesses.
Likewise, attackers may leverage AI-doctored photos and videos to defeat facial recognition security checkpoints. In the era of selfie payments and onboarding, the implications are alarming. Criminals equipped with deepfake technology could conceivably set up bank accounts, transfer funds, or make purchases under someone else’s identity. And they can do it all remotely.
Threats to Organizations and Financial Systems
Deepfakes do not only compromise individuals. Being able to authenticate identities and validate content is critical to whole companies and the financial systems. Such doctored footage, audio and biometrics could let down institutional trust and stability.
Deepfakes are new vectors for data breaches, digital fraud and cyber extortion for businesses. For example, criminals may deepen fake or impersonate executives to obtain confidential information and scam employees to transmit fraudulent wire transfers. Without sophisticated detection systems, employees have no hope of detecting such a ruse.
Regarding a hacking problem, deepfakes could also assist in the defeat of authentication technologies and entry into corporate networks. AI-generated content can also be used by cybercriminals to embarrass personnel, manipulate stock prices or stir up professional scandals.
Deepfakes have never been a greater threat to financial institutions. Criminally minded groups can create fake but credible politician’s or central bank officials’ videos, and they can, conceivably, instigate economic panic, bank runs, or market crashes.
Biometric authentication methods like voice, facial, and fingerprint recognition are the only methods banks can rely on to avoid significant identity fraud risks. The result of this could be an erosion of public trust in the financial system, thereby giving rise to instability. Given that deepfakes represent new opportunities for large-scale malicious manipulation, bad actors will be very attracted to deepfakes.
Ongoing Deepfake Detection Efforts
Given the threats posed by increasingly realistic AI-manipulated media, researchers and technologists are racing to find solutions. The same machine learning techniques that power deepfakes may also hold the key to detecting them.
For instance, the startup Deeptrace develops forensic tools that analyze facial expressions, lighting, pixels, and more to ascertain whether the footage is genuine. Other detection methods include searching for inconsistencies in heart rate and pulse among the subjects in the questioned videos.
Promising deepfake detection research also focuses on subtle aspects that algorithms find challenging to replicate accurately, such as eye-blinking patterns. By flagging unnatural blink rates, these systems can potentially identify synthesized footage.
Beyond analyzing the footage itself, authentication methods are emerging to validate provenance. Blockchain solutions offer one avenue by providing immutable verification of an image or video’s origin. Watermarks embedded at the point of recording via smartphone apps constitute another avenue.
While detection technology remains imperfect, steady progress is underway. However, bad actors also rapidly enhance their techniques. For the foreseeable future, the race between deepfake creators and detectors will continue. Each leap in AI manipulation capabilities necessitates an equivalent advancement in forensic analysis.
Individual and Organizational Response
Until reliable technical controls are widely available, the best defenses against deepfakes relate to awareness, education and policy. Individuals and employees should learn to spot telltale manipulation signs in images and footage. For example, subtle inconsistencies around eyes, teeth and facial features can reveal alterations. We all must become smarter media consumers in the era of AI manipulation.
Likewise, organizations require new staff training to prevent deception and business impacts from deepfakes. Education should focus both on detection techniques and prudent online conduct. Carefully controlling the availability of proprietary photos and videos can help reduce source material for deepfakes targeting your company.
Updating codes of conduct, harassment policies and authentication mechanisms are also necessary to account for deepfake threats. Seeking input from legal, PR and IT security staff can help businesses implement balanced protections without overreacting.
For financial firms and government entities, even more robust preparations are prudent. Scenario analysis can identify the biggest risks you face from potential deepfakes. Response plans should establish policies for fraud investigation, public relations crisis management and law enforcement referral.
Technical controls will also grow in importance over time. Once reliable deepfake detection tools emerge organizations should implement them for authentication flows and analysis of questionable media. Though costs today are prohibitive for many, these technologies will mature and become accessible to businesses of all sizes.
The Role of Policymakers
While businesses and individuals must adapt independently, policymakers also share the responsibility of addressing deepfakes. Experts argue that a combination of legislation and regulation is essential to mitigate harm.
Potential goals for lawmakers include prohibiting deepfakes that facilitate fraud and restricting nonconsensual intimate imagery. Altering an individual’s identity without permission could be codified as a criminal offense. However, any regulations must also consider the rights to free speech and parody. Overly broad bans could undermine creativity and media innovation.
Beyond outright bans, lawmakers could introduce requirements related to disclosure and consent. For example, film studios that use this technology to resurrect deceased actors might need to acknowledge the performances as synthetic. Laws might also demand that political ads declare manipulated media.
Additionally, governments should fund and coordinate deepfake detection efforts. Centralizing research and sharing breakthroughs between public and private institutions could accelerate progress. Lawmakers might also devote resources to educating the public on deepfake risks.
Through smart policies and public-private partnerships, governments can help mitigate dangers without chilling beneficial technology advances. However, regulating deepfakes poses complex challenges without easy solutions. Sophisticated policies will take shape gradually through continued analysis and debate.
The Path Ahead
As this technology grows more powerful and easier to wield, we will undoubtedly see increasing attacks against individuals, businesses, and society, often with severe consequences. However, through vigilance, education, and adaptation, we can reduce risks, even if we cannot eliminate them entirely.
Ongoing innovation in deepfake detection and authentication will provide technological controls to complement prudent policies and response strategies. Together, these measures will make the threats of impersonation fraud, slander, and malicious hoaxes far more manageable.
While the coming decade will likely see alarming uses of deepfakes, the long-term prognosis need not be so dire. By collectively enhancing our societal awareness, upgrading our policies, and embracing new security paradigms, we can mitigate the harmful impacts of AI manipulation.
In time, this technology may become no more dangerous than today’s rudimentary photo editing and video modification programs. But we must invest now in research, education, and preventative action to ensure that society maintains an openness to innovation and ensures the safety of individuals. Through sustained effort, we can cultivate resilience against this unique new threat.
Conclusion
Deepfakes leverage AI to create fabricated images, videos and audio that often pass initial scrutiny. As technology advances and spreads, this technology will empower new forms of fraud, theft, hoaxes and harassment. From individuals to global financial systems, everyone is at risk.
While technical countermeasures, such as deepfake detection systems, are advancing, they are still imperfect today. Therefore, individuals and institutions must increase awareness of manipulation techniques through education. Updating codes of conduct, authentication mechanisms, and crisis response plans are also wise preparations.
Policymakers retain an obligation to introduce thoughtful legislation to check the worst deepfake abuses. However, regulatory approaches require care not to stifle innovation and creativity. Through collective vigilance and adaptation at all levels, society can mitigate the dangers posed by deepfakes and other AI manipulations.
