According to the South China Morning Post, a fraudulent video, known as a deepfake, led to a loss of over $25.6 million (equivalent to more than Rs 200 crore) for a company. In the video, the impersonator posed as the Chief Financial Officer (CFO) during a conference call and instructed a money transfer. The employees were tricked into thinking the person on the call was genuine, unaware that the individual had created fake avatars of the CFO and other company members. The employees noted that the avatars not only looked real but also sounded convincing.
According to the report, scammers utilized deepfake technology to transform publicly accessible video and other materials into realistic versions of the meeting’s attendees. The Hong Kong Police confirmed this as the inaugural instance of scammers employing deepfake technology to dupe a financial institution. Acting Senior Superintendent Baron Chan Shun-ching remarked, “In this multi-person video conference, it appears that everyone you see is fake.”
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He further explained, “They employed deepfake technology to replicate the voices of their targets, reading from a prepared script.”
Remarkably, the employees who participated in this conference call were directed to execute 15 transfers amounting to HK$200 million or $25.5 million to five distinct Hong Kong bank accounts.
The Unfolding of the Scam
The whole incident occurred in about a week, starting from the initial contact until the victim recognized it as a scam. Police revealed that scammers utilized deepfake technology to digitally replicate the meeting’s attendees, mimicking their voices and looks with remarkable precision.
In the video call, scammers introduced themselves with a prepared script, issued commands, and abruptly ended the meeting. After the initial contact, they maintained communication with the victim via instant messaging, emails, and individual video calls.
Though the police are actively probing the case, no arrests have been made yet.
The Hong Kong Police deem this scam as unparalleled in the city’s history. Baron Chan Shun-ching, the acting senior superintendent, remarked, “In this multi-person video conference, it turns out that everyone you see is fake.”
He also stated, “They employed deepfake technology to mimic the voices of their targets reading from a script.” In total, 15 transfers amounting to HK $25.6 million were made to various bank accounts in Hong Kong.
Impact of deepfake technology in India
Numerous well-known figures in India, such as Akshay Kumar, Alia Bhatt, Ratan Tata, and even Prime Minister Narendra Modi, have fallen prey to deepfake technology. The government has issued a serious warning to social media platforms, emphasizing the need to swiftly detect and delete misinformation, including deepfakes, or risk facing legal consequences.
Recently, Rajeev Chandrasekhar, the Minister of State for Electronics and Information Technology, highlighted the legal responsibilities placed on intermediaries by the IT Rules of 2021. These rules require intermediaries to promptly remove banned misinformation, false data, and deepfakes. Non-compliance with these rules removes legal protections from intermediaries and could subject them to potential prosecution under applicable laws, such as the Indian Penal Code.
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