Hong Kong finance worker falls prey to $25M deepfake scam

Recent reports reveal that a finance worker at a multinational firm based in Hong Kong fell victim to a sophisticated deepfake scam, resulting in a staggering loss of $25 million. Hong Kong police revealed that the fraudsters utilised advanced deepfake technology to pose as the company’s chief financial officer (CFO) during a video conference call.

The scheme unfolded as the unsuspecting worker attended what he believed was a routine video call with several colleagues. However, it was later discovered that all participants in the call were meticulously crafted deepfake recreations, as disclosed by authorities in a press briefing.

The targeted finance worker’s suspicions were initially aroused when he received a message purportedly from the company’s UK-based CFO. The message hinted at the necessity of a confidential transaction, resembling a phishing attempt. Despite these initial doubts, the worker proceeded with the transaction after the video call, swayed by the convincing appearances and voices of the deepfake participants.

 

Hong Kong police made six arrests in connection with the $25.6 million deepfake scam.

 

The financial loss amounted to $200 million Hong Kong dollars, equivalent to approximately $25.6 million. Hong Kong police, addressing the growing concern over deepfake-related scams, announced six arrests in connection with the incident. Stolen identity cards, reported as lost by their owners, were used in 90 loan applications and 54 bank account registrations between July and September of the previous year.

In an alarming revelation, authorities disclosed that AI deepfakes were employed on at least 20 occasions to deceive facial recognition programs, simulating the individuals pictured on the stolen identity cards. The fraudulent activities only came to light when the deceived employee sought verification from the corporation’s head office.

This deepfake scam incident underscores the escalating sophistication of deepfake technology and its potential for malicious applications. Globally, concerns are mounting among authorities regarding the detrimental impact of such technological advancements.

As such malicious operations continue to evolve, businesses and individuals alike are urged to exercise caution and employ robust verification measures to thwart potential financial and reputational damage. The Hong Kong police are intensifying efforts to combat deepfake-related crimes, emphasising the urgency of addressing this growing threat to cybersecurity.