A multinational company fell victim to a sophisticated deepfake scam, resulting in HK$200 million in losses. Perpetrators used deepfake technology to fabricate convincing replicas of high-ranking company officials in a multi-person video conference. The scam, revealed by the South China Morning Post, highlights the escalating threat of deepfakes.
Deepfakes are a big threat and are being used to target celebrities, politicians and high-profile names. That has been the case till now. A report by the
South China Morning Post
reveals how a multinational company has fallen victim to a sophisticated
deepfake
scam, resulting in staggering losses of HK$200 million (US$25.6 million).
The scam, orchestrated through meticulously crafted deepfake technology, saw employees at the company's
Hong Kong
branch duped by digitally recreated personas, including a convincing replica of the company's chief financial officer.
According to authorities, the perpetrators leveraged publicly available video and audio footage to fabricate convincing replicas of individuals, including high-ranking company officials, in a multi-person video conference setting. The seamless manipulation of deepfake technology rendered all participants, except the targeted victim, as falsified representations.
Acting senior superintendent Baron Chan Shun-ching described the case as unprecedented in Hong Kong, emphasising the magnitude of the financial loss and the sophistication of the scam. Unlike previous instances where victims were deceived in one-on-one video calls, this scam unfolded within a multi-person video conference, with each participant meticulously crafted to deceive the targeted employee.
How the scam began
The scam unfolded when an employee in the finance department received a seemingly authentic message from the company's UK-based CFO, prompting the initiation of a purportedly secret transaction. Despite initial skepticism, the employee was convinced after participating in a group video conference where the faux
CFO
and other familiar faces were present, reinforcing the illusion of legitimacy.
Over the course of a week-long ordeal, the employee complied with instructions given during the video conference, resulting in 15 transfers totalling HK$200 million to five Hong Kong bank accounts.
It was only upon inquiry with the company's headquarters that the employee realised the elaborate ruse.
Subsequent investigations revealed that the scammers meticulously recreated meeting participants using deepfake technology, imitating voices and gestures to deceive the victim. The scam extended beyond the initial conference, with perpetrators maintaining contact through various digital channels, including instant messaging platforms and one-on-one video calls.
According to the report, senior Inspector
Tyler Chan Chi-wing
advised individuals to employ caution, suggesting methods to verify authenticity and immediately flagging any suspicious requests for money.
In response to the escalating threat posed by scams, authorities announced plans to expand their alert system to cover
Faster Payment System
(FPS) transfers, enhancing protections for users against fraudulent transactions. This proactive measure aims to mitigate the risk of financial losses associated with increasingly sophisticated scam operations, stated the report.
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