AI Deepfake Fraud Calls: A Rising Cybersecurity Threat in 2024

In 2024, AI-driven deepfake fraud calls have emerged as one of the most concerning cybersecurity threats, wreaking havoc across the UK and beyond. A new report from Hiya, a leading provider of call protection services, has shed light on how these sophisticated fraud schemes are rapidly becoming more prevalent, as generative AI tools make deepfakes more convincing and accessible than ever before. These types of scams are not only affecting consumers but also posing a growing risk to businesses and high-level executives, highlighting a new frontier in cybercrime.

As the world becomes increasingly dependent on AI technologies, criminals have found new and frighteningly effective ways to exploit these advancements. Deepfake fraud calls, which involve using AI to impersonate voices, are now capable of convincing individuals into revealing personal information, transferring money, or granting access to sensitive accounts. This shift represents a significant evolution in scam tactics, with AI lowering the barriers for criminals to execute fraud. Below, we will explore the key points from the Hiya report, understand the financial impact of deepfake scams, and offer suggestions on how to protect yourself from becoming a victim of this growing threat.

What Are AI Deepfake Fraud Calls?

AI deepfake fraud calls refer to scams in which cybercriminals use generative AI tools to create highly realistic fake voices, typically imitating someone the victim knows—such as a relative, colleague, or even a company executive. These calls are designed to trick the recipient into believing they are speaking to a legitimate person, often leading to fraudulent transactions, data breaches, or identity theft.

In recent years, the rise of deep learning technologies has made it easier for attackers to replicate voices with uncanny accuracy, making it challenging for even the most cautious individuals to distinguish between real and artificial voices. The rapid advancement of natural language processing (NLP) systems, such as GPT-4 and other AI models, has significantly improved the realism and fluidity of these deepfake calls.

Criminals are leveraging these capabilities to manipulate victims into making financial transactions, revealing sensitive personal information, or making security decisions that can have lasting consequences. The deepfake’s effectiveness lies in its ability to mimic not only the tone and cadence of a person’s voice but also their mannerisms and even their emotional states, making the call feel entirely authentic.

The Rise of Deepfake Fraud in the UK and Abroad

The Hiya report underscores the rapidly increasing prevalence of deepfake fraud calls, particularly in the UK. These scams are now one of the most widespread and damaging forms of cybercrime. In 2023 alone, British consumers lost millions of pounds to AI-driven scams, and the situation shows no signs of slowing down. The technology enabling these frauds is improving faster than many are able to defend against it, causing widespread concern among cybersecurity experts and consumers alike.

The global reach of these attacks cannot be underestimated. The deepfake fraud phenomenon is not restricted to the UK; it has also affected businesses and consumers in other regions. Countries like the US, Canada, and Australia are also seeing rising incidences of these AI-powered scams, with deepfake voice fraud becoming an international problem that requires urgent attention from law enforcement, businesses, and cybersecurity firms.

How Deepfake Scams Work: A Breakdown

Understanding how deepfake scams work is crucial for identifying and preventing these types of fraud. Typically, the process begins with the fraudster gaining access to a target’s publicly available information—this could include voice recordings from social media, voicemail systems, or previous interactions.

Once the scammer has a sample of the target’s voice, AI algorithms are used to generate a voice model that mimics the target’s speech patterns and tone. The result is a deepfake voice that can say anything the fraudster desires. This voice is then used in a phone call to deceive the victim, often creating a sense of urgency or emotional distress to prompt action.

For instance, a fraudster may call pretending to be a relative in an emergency, claiming to need money quickly. Alternatively, they may impersonate a business partner or CEO, instructing an employee to wire money or provide sensitive company data. The deepfake voice, combined with social engineering tactics, creates a potent scam that can be incredibly difficult to identify.

The Financial Impact of Deepfake Scams

One of the most alarming aspects of AI deepfake fraud calls is their cost to victims. The Hiya report notes that the average financial loss per successful fraudulent call in the UK is £595. This figure represents a significant sum, especially when considering the cumulative impact of these scams on individuals and businesses.

Over time, as deepfake technology becomes more widespread and accessible, the number of victims is expected to rise, leading to even higher financial losses. The fact that deepfake fraud calls are more difficult to identify means that more people are likely to fall prey to these scams. For businesses, the stakes are even higher. A deepfake call targeting a senior executive or business partner can result in much larger sums being stolen, potentially causing reputational damage and legal complications.

Deepfake Fraud Targeting Businesses and Executives

While deepfake fraud calls have traditionally targeted individual consumers, businesses—particularly those in sectors like finance, law, and tech—are increasingly becoming prime targets for cybercriminals. The rise of CEO fraud or business email compromise (BEC) attacks has already shown how effective social engineering and impersonation can be in the corporate world. Now, with deepfake technology, criminals can go a step further, not only imitating email correspondence but also using AI-generated voice calls to impersonate high-level executives.

A scammer could impersonate a CEO or CFO, instructing employees to transfer large sums of money or share sensitive corporate data. Because the voice on the other end of the line sounds authentically like the executive, the chances of the employee following through with the request are significantly higher. These scams are particularly dangerous as they can cause significant financial and reputational damage to organizations.

Protecting Yourself from AI Deepfake Fraud Calls

Given the increasing sophistication of AI-driven fraud, protecting yourself from deepfake scams requires a multi-layered approach. Here are some steps you can take to safeguard yourself from these types of attacks:

1. Be Skeptical of Unsolicited Calls: Always be cautious when receiving unexpected phone calls, especially if the person on the other end requests urgent action. Verify identities by calling back through official channels, rather than acting on the request immediately.

2. Use Call Protection Tools: Leverage call-blocking apps and services like Hiya, which can help identify potential scam calls. These apps often use AI and crowdsourced data to flag suspicious numbers and protect users from scams.

3. Educate Employees and Family Members: Ensure that everyone in your household or workplace understands the risks associated with deepfake fraud calls. Encourage them to remain cautious and verify any unusual requests before taking action.

4. Strengthen Voice Authentication Systems: For businesses, implementing voice authentication systems can help prevent fraudsters from successfully impersonating key executives. However, these systems should be paired with other verification methods for increased security.

5. Report Scams to Authorities: If you receive a suspicious call or believe you’ve been targeted by a deepfake fraud scam, report it to the relevant authorities. This helps law enforcement track and prevent further scams.

Conclusion: The Growing Threat of AI Deepfake Fraud Calls

The rise of AI-powered deepfake fraud calls represents a significant shift in the cybersecurity landscape. With the help of generative AI, criminals are now able to impersonate voices convincingly and target individuals and businesses with increasing effectiveness. As the report from Hiya highlights, this type of scam is not only growing in frequency but also in sophistication, making it more difficult for consumers and organizations to protect themselves.

As we continue into 2024, it’s essential to remain vigilant and take proactive steps to safeguard against these evolving threats. By staying informed about the latest scam tactics and implementing robust security measures, individuals and businesses alike can reduce their risk of falling victim to AI deepfake fraud calls.