The Rising Threat of Generative AI Fraud

Protecting Against a New Breed of Digital Deception

The emergence of Generative Artificial Intelligence (GenAI) has ushered in both incredible advancements and new challenges. In the fraud space, we see GenAI’s impact directly – fraudsters are leveraging its capabilities to automate and scale their fraudulent activities. However, uncertainty around its uses and capabilities remains, leaving companies exposed and unprepared for attacks and what is to come. 

To help fraud, risk, and trust and safety teams understand what they’re up against, Identiq’s team collaborated with industry experts and consulted with our customers to explain how its capabilities are used for fraud, and what can be relied on to fight it.

Using a free, open source video generator, this man created a realistic video of a woman with blue hair replicating his facial expressions Source: Stable Diffusion

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eBook on Identity Fraud and GenAI

Understanding Generative AI

Generative AI refers to advanced artificial intelligence systems that are capable of generating original content such as text, images, video, and audio. By leveraging vast historic datasets, the synthetic media GenAI autonomously generates is highly realistic and constantly improving with minimal training data. As a result, distinguishing between content created by humans and GenAI is increasingly difficult.

The Impact of GenAI on Identity Fraud

GenAI is improving and becoming more sophisticated. Seasoned and novice fraudsters looking to steal identities or create new ones can easily access advanced tools to create realistic and malicious content at scale. Multiple targets can be attacked simultaneously, while targets receive tailored content to deceive them. This is done with Gen AI’s ability to generate the following:

1. Automation and code: Fraudsters can automate complex and time-consuming activities involved in fraudulent schemes, streamlining end-to-end processes. 

2.  Text generation: Fraudsters can generate flawlessly written text by mimicking the style, tone, and language patterns of individuals, organizations, or businesses, tricking victims into performing actions that benefit the fraudsters.

3.  Image and video generation: GenAI empowers fraudsters to create highly realistic images and videos in seconds by blending or superimposing manipulated images onto target frames, replacing original content and use. 

4.  Audio generation: GenAI can synthesize realistic audio content that mimics sounds such as speech, music, and nature. Fraudsters can replicate individuals’ voices by training GenAI on speech recordings, enabling them to create fake phone calls, voice messages, and other audio content.


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Download the eBook on Identity Fraud and GenAI the tactics and MO’s fraudsters amplify with GenAI’s powerful capabilities

Real-world Implications

Fraudsters are already demonstrating their ability to carry out sophisticated attacks. We are seeing increased socially engineered attacks like phishing scams and account takeovers. In the marketplace, we see fake accounts becoming more realistic and an influx of falsified product reviews. At the same time, fraudsters can bypass liveness and verification checks easily and with more efficiency.

Bing Chat responds to a user saying it can’t help bypass captcha tests while revealing the answer to the test. Source: X

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The Way Forward: Collaboration and Validation

As the realm of fraud expands with the advent of GenAI, the responsibility to protect customers and businesses from digital deception becomes paramount. To combat GenAI fraud effectively, businesses and industry professionals must come together to leverage collective knowledge about customers. Legitimate users can be cross-referenced and validated, while false, generated identities will be kept out. ‍

Identiq’s peer-to-peer network empowers companies to safely collaborate with each other to validate trusted customers, all without sharing any sensitive data or identifiable information.

To learn more about GenAI’s impact on identity fraud and how Identiq’s private network for identity validation can protect businesses against fraud, download our eBook

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