The financial sector faces an escalating threat from deepfake technology, as highlighted in a new report by the Financial Services Information Sharing and Analysis Center (FS-ISAC). Titled Deepfakes in the Financial Sector: Understanding the Threats, Managing the Risks, this groundbreaking publication introduces a comprehensive taxonomy of deepfake risks tailored for financial institutions.
Deepfakes, which are AI-generated synthetic media, can convincingly impersonate executives, employees, and clients, posing a serious challenge to traditional security measures. Cybercriminals exploit the inherent trust in financial transactions, potentially leading to fraud, data breaches, and significant reputational damage. The report warns that projected losses from deepfake-related fraud could soar to $40 billion in the U.S. by 2027, underscoring the urgent need for robust protective measures.
Michael Silverman, chief strategy & innovation officer at FS-ISAC, emphasized the broader implications of deepfakes, stating that their impact extends beyond financial losses to eroding trust in the financial system itself. To combat these threats, organizations must adopt a holistic security strategy that fosters a culture of vigilance and critical thinking among employees and stakeholders.
The FS-ISAC report categorizes deepfake threats and offers actionable controls for financial firms to mitigate these risks effectively. It advocates for strengthening existing security protocols and enhancing employee and customer education on recognizing and responding to deepfake scenarios.
Hiranmayi Palanki, a leader in the AI Risk Working Group, stresses that addressing deepfake technology requires more than technical solutions; it necessitates a cultural shift within organizations to ensure that the workforce remains alert and informed. Meanwhile, Lisa Matthews from Ally Financial highlights that while deepfake technology is evolving rapidly, existing controls can significantly reduce associated risks.
In the coming weeks, FS-ISAC plans to release further guidance aimed at technologists implementing security measures, reinforcing the importance of a proactive and adaptable approach to this emerging threat.