Deepfake scam: Hong Kong firm loses over Rs 200 crore after video call from 'CFO'

Falling prey to a sophisticated deepfake scam, a Hong Kong-based multinational company has incurred a massive loss of $25 million (around Rs 207 crore).

As per media reports, the perpetrators utilised advanced deepfake technology to deceive an unsuspecting employee at the Hong Kong branch. It all unfolded in January when an employee in the company’s finance department received a message purporting to be from the company’s UK-based chief financial officer (CFO), as reported by the South China Morning Post (SCMP) and Business Insider. The employee then engaged in a video call with the alleged CFO and other company employees, only to discover later that all participants were skillfully crafted deepfake personas.

A deepfake is a type of synthetic media that uses artificial intelligence to manipulate or generate visual and audio content, often with a malicious motive, to appear authentic.

Undetected for a week

Though the employee in question initially had a “moment of doubt”, but walked into the trap after participating in a group video conference. The deepfake representations of company employees appeared authentic during the call, prompting the victim to follow instructions and make 15 transfers totaling $25 million to five different Hong Kong bank accounts.

Following the initial contact, the accused continued to engage with the victim through instant messaging platforms, emails, and one-on-one video calls.

Interestingly, the fraud remained undetected until a week into the scam. It came to light only when sensing something suspicious, the deceived employee contacted the company’s headquarters.

No arrest so far

Refraining from disclosing specific company and employee details, the Hong Kong police revealed that the accused generated deepfakes of meeting participants using video and audio footage that were available online. Surprisingly, the victimised employee didn’t recognise the artificial nature of the deepfakes during the video conference.

According to the police, the perpetrators digitally recreated the meeting’s participants using deepfake technology, imitating their voices and appearances with convincing accuracy.

Investigations are currently underway, but no arrests have been made as of now, underlining the challenges authorities face in combating such technologically advanced cybercrimes.

Threat of deepfakes

The incident brings back the spotlight on the growing threat of deepfake technology in perpetrating financial fraud and corporate deception.

Beyond financial scams, deepfake videos have become a global concern, as highlighted by the recent wave of sexually explicit deepfake videos involving international pop sensation Taylor Swift circulating on platforms like X and Telegram.

In India too, famous personalities such as Alia Bhatt, Katrina Kaif, Rashmika Mandanna and more have become the victim of deepkfakes that raised a lot of security as well as privacy concerns in the country.