Hong Kong Firm Loses $25M In Deep Fake Scam

Hong Kong Cyber Security Division believes the fraudstes used AI to create deepfakes by adding fake voices to image of the executives.

Deepfake con artists were successful in deceiving an employee of a multinational corporation into sending out more than $25 million of corporate funds through an elaborate scheme that impersonated numerous officials of the company during an online video chat.

Acting Senior Superintendent Baron Chan of the Cyber Security Division of the Hong Kong Police Force stated in a statement broadcast on Radio Television Hong Kong (RTHK) that the incident began one month ago when the employee received a bogus message from the chief financial officer of the company inviting them to participate in a video call to discuss a confidential transaction.

The con artists accomplished convincing the employee to send $25.5 million of the company’s funds across 15 transactions to five different bank accounts by deploying multiple deep fakes of various company officials.

In his statement, Chan expressed his belief that the con artists used previously captured footage of the company’s executives to build the deepfake impersonations. According to Chan, “I believe the fraudster downloaded videos in advance and then used artificial intelligence to add fake voices to use in the video conference.”

Chan explained that he believes this to be the case. He emphasized that the people participating in the video conference appeared to be the same as the actual people.

Following a consultation with the company’s headquarters, the employee became aware of the fraudulent scheme. Amid a significant increase in the number of deepfake frauds in the region, the police stated that this was the first occurrence of its kind in Hong Kong.

“We want to ensure that the general public is aware of these new deception strategies,” Chan emphasized. One of the departments that makes up the Hong Kong Police Force is the Cyber Security Division.

“We can see from this case that fraudsters are able to use AI technology in online meetings, so people must be vigilant even in meetings with lots of participants.”

It is responsible for preventing technology crime and ensuring citizens remain safe when using the internet. The Cyber Security Division launched a metaverse platform in May 2023 to prepare its residents for “challenges ahead in the digital age,” with a particular emphasis on preventing crimes committed through the use of contemporary technology.

Deepfakes have also lately attracted the attention of lawmakers in the United States of America as a result of the widespread dissemination of fake photographs of Taylor Swift.

According to Representative Joe Morelle of the United States of America, the manufacturing of profoundly fake pictures should be made a criminal offense in the country.