Deepfake fraud rises: 56% of Singapore firms affected

A recent survey conducted by Regula has highlighted the increasing prevalence of deepfake fraud affecting businesses globally, with a specific focus on the situation in Singapore.

The comprehensive study, aimed at understanding the emerging trends in identity fraud, reveals that a significant percentage of companies in Singapore have encountered various forms of deepfake and traditional fraud.

The data indicates that 56% of businesses in Singapore have faced incidents of audio deepfake fraud. This technique, which involves creating realistic audio imitations, poses a substantial risk, potentially causing financial and reputational harm to organisations. Similarly, 52% of companies reported experiences with video deepfakes, where advanced artificial intelligence creates hyper-realistic videos intended to deceive viewers and exploit trust.

Traditional forms of identity fraud remain a challenge, with 43% of Singaporean businesses reporting incidents involving fake or modified physical documents. This form of fraud underlines the persistent threat that conventional identity-based scams pose even amidst the rise of digital threats.

Synthetic identity fraud, where perpetrators blend real and fictitious information to create new identities, was reported by 39% of organisations in Singapore. This type of fraud is indicative of the evolving tactics used by criminals in exploiting both digital and traditional identity verification loopholes.

Globally, the survey demonstrated a notable surge in video deepfake fraud, with an increase of 20% compared to 2022, highlighting a growing challenge that businesses face. The survey, which included participants from the USA, UAE, Mexico, Singapore, and Germany, showed that nearly half of the businesses experienced deepfake scams, reflecting a consistent threat across various regions.

In terms of industry-specific data, audio deepfakes are more prevalent in sectors such as Financial Services (51%), Aviation (52%), and Crypto (55%). Meanwhile, sectors like Law Enforcement (56%), Technology (57%), and FinTech (57%) reported higher incidences of video deepfake scams.

The findings illustrate that countries including the UAE and Singapore are more susceptible to deepfake fraud, with a higher percentage of businesses reporting such occurrences compared to the global average. Conversely, Mexico reported the lowest impact, with 35% and 38% of businesses experiencing video and audio deepfakes, respectively.

Regula's survey also pointed out the persistence of traditional identity-related fraud, with 58% of global businesses encountering fake or modified documents, a larger percentage compared to those impacted by AI-generated scams. This suggests that, while adapting to tackle new threats, companies must continue addressing longstanding issues.

Ihar Kliashchou, Chief Technology Officer at Regula, commented on the findings, saying, "Our latest survey demonstrates that AI-generated identity fraud has become an everyday reality. The surge in deepfake incidents over the two-year period of our survey leaves businesses no choice but to adapt and rethink their current verification practices."

He emphasised the importance of a liveness-centric approach, which involves verifying biometrics and ID hardcopies in real-time interactions as a robust method to combat these threats.

The survey was carried out in August 2024 by Sapio Research on behalf of Regula, involving 575 business decision-makers across various sectors, including Financial Services, Crypto, Technology, Telecommunications, Aviation, Healthcare, and Law Enforcement.