Hong Kong AI Scam: Company Loses $34 Million, Employee Falls Victim to Deepfake Video Call Impersonating CFO

The discussion topic in Hong Kong are sure now strongly highlighting on the issue of AI scams. Recent news unveiled that in a startling incident, a Hong Kong-based company recently fell victim to a sophisticated AI scam, losing a staggering $34 million. The elaborate scheme involved an employee who unwittingly became prey to a deepfake video call, cleverly impersonating the company’s Chief Financial Officer (CFO).

This disturbing event sheds light on the evolving landscape of cyber threats, demonstrating the potential financial repercussions when advanced technologies are maliciously wielded. The narrative unfolds as an employee, trusting in the authenticity of the call, unwittingly became entangled in a web of deception, emphasising the need for heightened vigilance and security measures in the face of increasingly sophisticated cyber threats.

Also Read: Unveiling the Threat of AI Face Swap App Scams: The Menace of Deepfake Technology in 2023

What’s All the Deepfake AI Scam News About?

Based on the reported news, the AI scam began from a financial professional at a Hong Kong multinational corporation was deceived into transferring $25 million to scammers who utilised deepfake technology to mimic the company’s CFO in a video conference, as reported by Hong Kong police.

The victim of this AI scam, Baron Chan Shun-ching, a senior superintendent in the company, revealed that the intricate scam involved the employee participating in a video call, believing it involved several colleagues, only to later discover that all participants were sophisticated deepfake replicas.

Chan’s scepticism arose when receiving a message allegedly from the UK-based chief financial officer, discussing the necessity of a confidential transaction, initially suspected to be a phishing attempt. Despite initial reservations, the employee dismissed doubts after the video call, as the participants convincingly resembled and sounded like familiar colleagues.

Assuming the authenticity of all participants on the call, the employee, Chan, consented to transferring a sum totalling $200 million Hong Kong dollars, equivalent to approximately $25.6 million, as disclosed by the police officer. This incident is among several recent cases where fraudsters are suspected to have employed deepfake technology, manipulating publicly available videos and other content to deceive individuals for financial gain.

During the press briefing on Friday, the Hong Kong police announced six arrests linked to such major AI scam. Super intendent Chan revealed that eight stolen Hong Kong identity cards, all previously reported as lost by their owners, were utilised for 90 loan applications and 54 bank account registrations from July to September 2023.

The police once again reported that AI scams using AI deepfakes were deployed over 20 times to deceive facial recognition systems by mimicking the individuals depicted on the identity cards. The fraudulent scheme involving the fabricated CFO came to light only after the employee cross-checked with the corporation’s head office.

Related: AI Voice Scams: Don’t Fall Victim in 2023

The Scary Power of Deepfakes in AI Scams

The rising prevalence of deepfakes in AI scams underscores the unsettling potential of this technology. This most recent incident highlight the sophisticated and malicious uses of AI-generated content.

Beyond financial fraud, police reports reveal instances where AI deepfakes have successfully duped facial recognition programs by mimicking individuals pictured on stolen identity cards, emphasising the far-reaching implications of this deceptive capability. The frightening power of deepfakes in AI scams demands heightened awareness, stringent security measures, and concerted efforts to stay ahead of evolving cyber threats.

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Hong Kong’s Recent AI Scam Crime Condition

According to the annual roundup to lawmakers concluded up by the Hong Kong police back on Tuesday, Hong Kong in 2023 has a total number of 39,824 scams, constituting 44.1 percent of all reported offenses. The scams caused Hongkongers the lost of around HK$9 billion that boosted in a variety of scams last year. With a bad boosted influence, the high number of scams contributed to an almost 30 percent increase in reported crimes.

Final Say

The harrowing incident in Hong Kong, where the company suffered a $34 million loss due to an employee falling victim to a deepfake video call impersonating the CFO, serves as a stark reminder of the evolving threats in the digital landscape.

This disturbing convergence of AI sophistication and malicious intent underscores the critical need for organisations and individuals alike to fortify their defences against such deceptive practices. As the prevalence of deepfakes in cyber scams continues to escalate, the call for heightened cybersecurity measures, comprehensive employee training, and advanced fraud detection technologies becomes more urgent than ever.

This incident serves as a catalyst for a collective commitment to resilience and vigilance in the face of evolving technological risks, emphasising the imperative of staying one step ahead in the ongoing battle against cyber threats.

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