Beware: Deepfake Imposter Scams and Investment Fraud on the Rise

Deepfake imposter scams, fueled by advancements in artificial intelligence (AI), are driving a new wave of fraud, posing a significant threat to the financial industry. Criminals are using AI to create realistic computer-generated voices and masks that can deceive even the most vigilant consumers. The proliferation of scam tech has alarmed regulators and law enforcement agencies, as financial fraud continues to rise despite increased investment in detection and prevention. The adoption of online banking during the COVID-19 pandemic has further opened opportunities for scammers. The use of AI in fraud is expected to increase in sophistication and volume, making it a challenging arms race for banks and law enforcement.