## Deepfakes Cost Businesses Millions: Regula’s Survey Highlights Growing Threat
Deepfakes, the hyperrealistic AI-generated videos and audio that can be used for malicious purposes, are posing a significant financial threat to businesses across the globe. A new survey conducted by Regula, a global leader in forensic devices and identity verification solutions, reveals the staggering financial impact of deepfake fraud.
The survey, titled “The Deepfake Trends 2024,” found that the average loss for organizations due to deepfake fraud reached a staggering $450,000. However, the Financial Services sector experienced a significantly higher burden, with average losses exceeding $603,000. This indicates that deepfakes are a particularly potent threat to financial institutions.
The study also reveals that the problem is growing rapidly. In 2022, Regula’s research showed that the average financial burden of identity fraud was around $230,000. This means that the financial impact of deepfakes has nearly doubled in just two years, highlighting the urgency for organizations to take proactive measures to protect themselves.
Industry and Regional Breakdown
The survey also examined the impact of deepfake fraud across various industries and regions. The Finance sector emerged as the most affected, with 23% of surveyed organizations reporting losses exceeding $1,000,000. This is double the global average. Within the Finance sector, Fintech companies experienced even higher losses than traditional banking institutions, with average losses reaching $637,000 and $570,000, respectively.
Geographically, Mexico reported the highest average losses at $627,000, followed by Singapore with $577,000 and the USA with $438,000. Germany and the UAE reported slightly lower but still significant average losses of $394,000 and $379,000, respectively.
The Confidence Gap
The survey also unveiled a concerning gap between organizations’ confidence in their ability to detect deepfakes and their actual preparedness. While 56% of businesses claimed to be very confident in their ability to identify deepfakes, only 6% reported having avoided financial losses from these attacks.
This stark discrepancy highlights the need for organizations to adopt a more proactive approach to deepfake prevention. As Ihar Kliashchou, Chief Technology Officer at Regula, states: “The significant gap between confidence in detecting deepfakes and the reality of financial losses, particularly in Financial Services, shows that many organizations are underprepared for the sophistication of these attacks. As the threat evolves, it’s crucial for companies to switch to a liveness-centric approach. This approach focuses on dealing with physical objects only – both faces and documents, as well as their dynamic parameters – in real time, which can significantly decrease the chances of falling victim to a deepfake attack. Additionally, it’s advisable to use multiple layers of identity verification and choose highly reliable technologies, like secure server-side reprocessing of all document and biometric checks.”
The Need for Action
The findings of Regula’s survey paint a stark picture of the growing threat posed by deepfakes. Organizations across all industries, particularly in the Financial Services sector, need to take immediate action to strengthen their defenses. This includes adopting a liveness-centric approach to identity verification, using multiple layers of security, and implementing highly reliable technologies. Failure to do so could result in substantial financial losses and reputational damage.
