Deepfake scams cost Australian businesses millions, research reveals

Deepfake scams have resulted in significant financial losses for Australian businesses and consumers, according to recent research commissioned by Mastercard.

The study found that deepfake scams have targeted 20% of businesses and 36% of Australian consumers in the past year, with total losses estimated in the tens of millions of dollars. Mallika Sathi, Vice President, Security Solutions, Australasia at Mastercard stated, "However, given many victims of these scams are not aware that they have been targeted, this is potentially only the tip of the iceberg."

The research revealed that out of those targeted, 22% of consumers fell victim to the manipulated content, and 48% of them did not report the incident. Additionally, 36% were targeted for non-financial losses, such as identity theft.

Despite facing such significant risks, a substantial portion of the population remains unprotected, with 19% of Australians not taking any measures against deepfake scams. Sathi discussed the dual nature of generative AI technology, "Generative AI technology, while offering incredible potential, can be harnessed in both beneficial and concerning ways. Increasingly we see it is being used to manipulate consumers and businesses out of money in the form of scams involving deepfakes."

Australian grandparents are perceived as particularly vulnerable, with 25% of those surveyed believing they are most likely to fall victim to deepfake scams. Despite this concern, only 24% of Australians have taken steps to educate themselves or their family about these scams, and only 12% were confident in their ability to detect them.

The survey also highlights a decrease in trust towards digital platforms. 60% of Australians have become less trusting of social media platforms, 47% of phone calls, and 46% of messaging services.

Businesses are similarly affected, with 20% reporting deepfake scam attempts in the last 12 months, and 12% admitting they were deceived. Deepfake scams targeting businesses typically impersonate customer service representatives, clients, or suppliers in order to commit fraud.

To combat this, 43% of businesses have implemented identity verification protocols, while 45% have conducted cybersecurity training. However, a notable 16% have yet to implement any protective measures against deepfakes.

Sathi advises, "Never give out your personal information or account data without verifying the identity of who you are talking to. You should monitor your accounts and statements for transactions you don't recognise, and if you suspect there has been fraudulent activity, contact the financial institution that issued your card immediately."

Mastercard is working towards improving consumer protection by investing in technology and education. It has launched a six-part educational series, alongside deepfake educator Stacey Edmonds, aimed at helping businesses and consumers protect themselves from deepfake scams. This series includes practical advice such as establishing a family code word and improving digital literacy.

Mastercard is committed to tackling these scams and recently moved to acquire the threat intelligence company, Recorded Future. Sathi commented, "Scammers have become more brazen and sophisticated, taking advantage of the latest technologies like AI and other means to deceive consumers. Mastercard is committed to providing Aussies with the insights and tools to help protect themselves and their loved ones from scams."