AI deepfakes fuel rise in financial fraud, expert warns

702's Gugs Mhlungu spoke to Dr. Mark Nasila, Chief Data and Analytics Officer at First National Bank Risk. 

Listen to their conversation in the audio clip below.

As artificial intelligence advances, so too do the ways criminals are using it to deceive and commit fraud.

Nasila says deepfake technology is now sophisticated enough to convincingly impersonate people’s voices and faces, putting financial systems at risk and demanding stronger safeguards.

He referenced real-world cases where deepfakes led to multimillion-dollar scams. 

In one instance, a Hong Kong finance manager transferred $25 million after joining a virtual meeting with what he thought were company colleagues, all of whom turned out to be AI-generated fakes.

"He later on found out every other person on that video was not real except him."

- Dr. Mark Nasila, Chief Data and Analytics Officer at First National Bank Risk

To guard against AI-driven fraud, Nasila advocates for a "zero-trust" approach and emphasises the importance of deepfake detection tools, cyber hygiene, and ongoing risk assessments.

"Organisations have to invest in digital detection of deepfakes. The same way they're investing in the technology itself to drive efficiencies, they have to make sure they've got strategies to respond in case they predict or identify any issues."

- Dr. Mark Nasila, Chief Data and Analytics Officer at First National Bank Risk

While OpenAI’s CEO Sam Altman has warned that the world may be on the brink of an AI-induced fraud crisis, Nasila offers a more measured view.

"I wouldn't call it a crisis, but I would call it a reality because unfortunately, when you have a technology that could be used for good, most of the time bad actors get their hands on it faster, and they could misuse it for different bad reasons."

- Dr. Mark Nasila, Chief Data and Analytics Officer at First National Bank Risk

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