Deepfake Scam Costs Engineering Firm $25 Million, Highlights Urgency Of Workplace Cybersecurity

British engineering firm Arup has fallen victim to a sophisticated deepfake scam, resulting in a $25 million loss.  

The Financial Times reports that the scammers used a digitally cloned version of a senior manager to successfully order financial transfers during a video conference. 

This breakthrough incident reveals the urgent need for improved cybersecurity measures as the global workforce increasingly relies on video conferences, artificial intelligence (AI), and other digital interactions. 

Deepfake technology is hyper realistic video and audio recordings created with AI. The potential for this technology to be used for malicious reasons, like fraud, should raise concerns among employers and employees throughout the workforce. 

Arup confirmed to CNN Business that one of its Hong Kong employees was deceived by AI-generated voices and images — leading to the substantial financial transfer. It’s revealed that a spokesperson from Arup said the deepfake scam, which was reported to Hong Kong police in January, did not compromise the company’s internal systems. 

The use of deepfake technology within this context also shows how cyberattacks can use new techniques to infiltrate business.  

Law enforcement and government agencies worldwide are increasingly concerned about the malicious applications of deepfake technology, which can convincingly mimic real people’s appearances and voices. 

The use of advanced technology for malicious attacks is also leading 63% of organizations to embrace zero-trust polices, where network security is always assumed to be at risk, as a cautionary measure to better protect workers and assets.