Seeing is not believing: protecting your company from deepfakes
Fraud has long been a concern of many Canadian organizations, and it’s only getting worse. Digital fraud in particular, was up 40% last year. Canadians lost a total of $567 million to cybercriminals and other fraudsters in 2023.
Unfortunately, it is likely to continue. Cybercriminals are now using artificial intelligence (AI) technology to further their goals with “deepfakes,” or audio and video that can mimic real people, such as C-suite executives or other business leaders. These videos are so life-like that employees believe they are interacting with the real person.
Deepfake scams are powerful. One Ontario man was convinced to invest more than $10,000 after he saw a video of Justin Trudeau and Elon Musk endorsing an investment platform. Several senior citizens in Newfoundland sent thousands of dollars to fraudsters after receiving a single telephone call, supposedly from a grandchild, requesting help. In both cases, the audio and the video were nothing more than AI creations.
Protect your Organization
In a business context, deepfakes are dangerous – and they will only become more convincing over time. Organizations must protect themselves or risk losing everything.
Unfortunately, no one is completely immune to fraud. You’ll need the right coverage to protect you in case the worst happens. Be sure your commercial crime or cyber insurance policy covers you for funds transfer fraud, invoice manipulation or social engineering scams. It’s a good idea to work with an experienced broker who can support you with risk mitigation resources and crisis response coverage to minimize the financial and reputational damage of these scams.
Remember: These hoaxes represent a threat not only to your organization’s bottom line, but also to your brand and your reputation. In some cases, it could even constitute a threat to the safety of your leaders and other employees. But taking steps to mitigate risk can change the game completely.
About the author: Jonathan Weekes, Cyber Leader at Hub International, leverages over 13 years of experience in commercial insurance, focusing on professional liability and cyber.