Danger! This is how you recognize fraudulent Deepfake investments!

Danger! This is how you recognize fraudulent Deepfake investments!

In recent months, numerous online fraud attempts have reached alarming proportions, including fictitious investment opportunities with unrealistic promises. A particularly elaborate fraud attempt that advertises the alleged guaranteed income of 20,000 euros has come into circulation. It is important to note that fake licenses from the financial market supervisory authority as well as supposed coordination with the Ministry of Finance and the Austrian National Bank (OeNB) are also brought into play. The Ministry of Finance itself has issued an urgent warning and emphasized that neither it nor prominent institutions such as Federal President Alexander Van der Bellen are advertising dubious projects. Authorities also urge citizens to never give out personal information such as passwords or credit card information, as this is a common tactic used by fraudsters to obtain private information.

The use of deep fake technology plays a crucial role in scammers' methodology. Deep fakes are artificially created images, audio or video recordings that have been manipulated to appear deceptively real. Fraudsters use this technology to spread misinformation or gain the trust of potential victims. Finance Minister Markus Marterbauer (SPÖ) emphasizes the need to recognize fraudulent activities in a timely manner and to act accordingly. His counterpart, Finance State Secretary Barbara Eibinger-Miedl (ÖVP), also warns of the risks of fake websites that lure people with unrealistic promises of profits.

Fraud attempts are changing

The increase in fraud attempts now also have a direct impact on the financial institutions themselves. According to a study by Signicat entitled "The Battle Against Ai-Drive Identity", the number of deepfake fraud attempts has increased by a remarkable 2,137 % in the past three years. This is also evidenced by the statements of over 1,200 decision-makers from the finance and payment sector that were interviewed. This increased number makes Deepfake technology one of the three most common types of identity fraud in the European financial sector.

The most common types of fraud in the financial sector are account takeovers, followed by card payment fraud and phishing. The use of deep fakes can now be found in 42.5% of all fraud attempts discovered, whereas three years ago this proportion was only 0.1%. This development shows that fraudsters are using increasingly sophisticated technologies to achieve their goals and are particularly targeting younger people on social media and other platforms.

Urgent need for action

The urgency to implement suitable security measures is becoming increasingly clear. The signicat report urges financial institutions to rethink their cyber security strategies and develop advanced identification systems that combine AI and biometry. Despite these challenges, only 22 % of financial institutions have currently introduced such AI-based tools for fraud prevention. In today's world, it is essential that companies continuously check and adapt their security standards.

In summary, although the digitalization of the financial sector brings many advantages, it also poses new dangers. The combination of deepfake technology and sophisticated fraud approaches requires increased vigilance and timely action from both institutions and consumers.