Protecting Banks from Deepfake Attacks: A Comprehensive Guide
The Rise of Deepfakes and the Need for Enhanced Cybersecurity
Generative AI has revolutionized the world, and its impact is only growing. As a result, companies are forced to re-examine their cybersecurity measures to counter the evolving threats posed by criminals exploiting AI’s capabilities. The financial services sector, in particular, is at risk, with deepfake fraud on the rise.
Banks are increasingly falling prey to deepfake fraud, and unfortunately, the financial services sector is likely to be hit even harder. In the last month, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued an alert to help financial institutions detect scams associated with the use of deepfake media. FinCEN has seen an increase in reports of suspicious activity by financial institutions detailing the use of fraudulent identity documents to evade identity verification and authentication methods: falsified documents, photographs, and videos created via generative AI.
The Consequences of Deepfake Attacks on Banks
A recent incident saw a finance worker at a multinational firm tricked into paying out $25 million to fraudsters who used deepfake technology to pose as the company’s Chief Financial Officer during a video conference call. The elaborate scam duped the worker into believing he was participating in a video call with several other staff members, all of whom were, in fact, deepfake recreations.
This alarming trend is becoming increasingly common. Cybercriminals are finding loopholes to navigate and manipulate safety protocols. When one firm experiences a high-profile, gen AI-enabled scam, it not only faces the loss of customer trust and regulatory fines but also risks reputational damage.
What Can Banks Do to Counter Deepfake Attacks?
Employee Training and Education
Effective employee training is crucial. Employees should be considered the first line of defense against deepfake attacks. It is essential to provide ongoing guidance and training on the latest cybersecurity best practices, how deepfakes are used, and how to recognize them. Employees should also be advised on how to respond if a deepfake is suspected to prevent further damage.
Implementing the ‘Mindset-Skillset-Toolset’ Approach
Banks must ensure their employees are equipped to recognize potential risks by building an effective human firewall, contributing to company-wide cyber resilience. This includes adopting the ‘mindset-skillset-toolset’ approach:
- Mindset – Raise awareness among employees about growing cyber threats
- Skillset – Combine awareness training with simulations for employees
- Toolset – Incorporate tools that support secure behavior by employees
Implementing Strong Security Protocols
Banks must implement proper protocols and processes to ensure that sensitive assets like passwords, data, and core financial functions are being protected and hardened against potential attacks.
Using complex passwords and multi-factor authentication (MFA) is key. While it might be common to use simple passwords because they are easier for users to remember, they are also easier to hack. Ensuring all employees use complex passwords of a sufficient length prevents cybercriminals from gaining access to company systems. Employees should also be required to use MFA and/or Passkeys as an extra security barrier and be trained to flag any suspicious activity.
Restricting login attempts can also help surface a high number of failed logins, which are often one of the first indicators of an ongoing attack and should be a core part of any business’s security posture.
Monitoring login patterns and alerting appropriate teams when suspicious activity occurs is also essential as part of an ongoing and enforced business process.
Locking Down Permissions
It is crucial to lock down permissions – a lax approach to who can access what can result in untold damages if sensitive information falls into the wrong hands. Permissions need to be managed on a need-to-know basis, and these should be audited and updated regularly to keep things as watertight as possible.
Conclusion
The generative AI boom is not slowing down, and banks must remain informed on how to protect themselves and their customers. It is no longer optional – it must be a fundamental part of business operations.
FAQs
Q: What is the impact of deepfake attacks on banks?
A: Deepfake attacks can lead to significant financial losses, reputational damage, and regulatory fines.
Q: How can banks protect themselves from deepfake attacks?
A: Banks can protect themselves by implementing effective employee training, adopting the ‘mindset-skillset-toolset’ approach, and implementing strong security protocols, including complex passwords and multi-factor authentication.
Q: What is the role of employee training in preventing deepfake attacks?
A: Employee training is crucial in preventing deepfake attacks. Employees should be trained on the latest cybersecurity best practices, how deepfakes are used, and how to recognize them, as well as how to respond if a deepfake is suspected.
Q: What is the ‘mindset-skillset-toolset’ approach?
A: The ‘mindset-skillset-toolset’ approach is a comprehensive approach to building an effective human firewall, contributing to company-wide cyber resilience. It includes raising awareness among employees about growing cyber threats, combining awareness training with simulations, and incorporating tools that support secure behavior by employees.
