Deepfake technology, which utilizes artificial intelligence to create hyper-realistic but entirely fabricated audio and video content, has rapidly advanced, leading to a surge in malicious applications. Cybercriminals exploit this technology to impersonate executives, facilitating fraudulent financial transactions. For instance, in 2020, a Hong Kong bank suffered a $25 million loss when scammers used deepfake audio to mimic the voice of the company's chief technology officer, instructing employees to transfer funds. This incident underscores the vulnerability of financial institutions to such sophisticated attacks.
Beyond financial fraud, deepfakes pose significant threats to individual privacy and corporate reputation. Malicious actors can create convincing fake videos or audio recordings to spread false information, damage reputations, or manipulate public opinion. In 2023, deepfake videos of world leaders making false statements spread confusion online, highlighting the potential for misinformation crises. Additionally, deepfakes can be weaponized to create non-consensual explicit content, leading to severe personal and professional consequences for the victims.