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Education Key to Protecting Asian Companies from AI-Driven Fraud

Advanced technologies such as AI and deepfake films are allowing fraudsters to build hyper-realistic scams that avoid standard security safeguards. Asian businesses are especially vulnerable to these scams, which have already resulted in millions of dollars of losses. Employee education and training are critical to strengthening defences against AI-driven fraud.

This new wave of fraud poses a huge threat to enterprises throughout Asia, resulting in millions of dollars in losses.


According to data compiled by identity verification platform Sumsub, deepfake fraud has increased in Asia, particularly in Japan and Vietnam. These frauds are painstakingly designed, using social engineering techniques and feature highly realistic voice and video content, as well as near-perfect duplicates of legitimate emails and websites.


Susceptible employees are a significant vulnerability that these scams exploit. This emphasises the need for businesses to shift their focus away from simply repelling hackers and towards prioritising employee awareness and training to protect against these insidious new threats.


Recent occurrences serve as sharp reminders of the perils associated with AI-driven fraud. In Hong Kong, a finance official from the British engineering firm Arup was duped into sending $25.6 million to fraudsters who utilised AI-synthesised sounds and images to mimic the company's chief financial officer during a video conversation. Similarly, the director of a German technology company's Hong Kong branch was duped into sending HK$11 million to scammers posing as a senior official via phishing emails.


Even Gogolook, a Taipei-based developer of anti-fraud software, has been subject to such attacks. Fraudsters posing as the CEO often target the company's employees, faking identities and attempting to deceive them.


These examples are only the tip of the iceberg, and Asian businesses cannot afford to wait. It is critical that they strengthen their defences immediately to prevent the possibility of being the next target.


Traditionally, fraud education has concentrated on simple red flags like poorly written emails, suspicious hyperlinks, and grammatical errors. However, with the rise of AI-powered attacks that can perfectly replicate the voices and writing styles of senior corporate leaders or generate hyper-personalised information to escape filters, old training approaches are becoming obsolete.


According to the Asia Scam Report, published by Gogolook and the Global Anti-Scam Alliance, almost 40% of fraud victims in China and Japan blamed their misfortune on a failure to detect scamming. This lack of information offers an ideal environment for scammers to thrive, particularly in Asia, where digital penetration is increasing.


To tackle the rising tide of fraud, a multifaceted approach is required. While strong security software and multifactor authentication are essential, effective safety starts with knowledge. Fear-based training is no longer sufficient. Instead, extensive and dynamic anti-fraud training for employees is required.


Staff can become frontline defenders of their companies by being equipped with the knowledge and skills necessary to detect and report suspicious activity. Investing in a strong anti-fraud training programme should be viewed as a strategic investment in a company's future innovation and development.


Several measures have previously been undertaken to solve this issue. The Singapore Institute of Management and Singapore Telecommunications, for example, have launched a cyber scam preparedness programme to provide financial sector employees with the skills needed to deal with complicated fraud efforts employing AI, phishing, and other deceptive approaches.


Gogolook has cooperated with enterprises in Taiwan to deliver interactive staff training, including CTBC Bank, Bank SinoPac, Cardif Assurance Vie, and Cathay Life Insurance. These programmes not only assist staff in detecting and preventing fraud, but they also contribute to creating a more secure workplace, boosting customer trust in today's digital landscape.


However, knowledge acquisition should not be limited to single companies. Convening forums to exchange best practices and sophisticated anti-fraud insights is critical for keeping firms up to date on the latest fraud schemes and risk profiles.


Regional collaboration and dialogue are also important in building effective anti-fraud education and awareness campaigns. The Anti-Scam Asia Summit, sponsored by the Global Anti-Scam Alliance in collaboration with Gogolook, brought together government leaders, law enforcement officials, and executives from Asian financial, e-commerce, and technology firms to discuss how to stay ahead of digital criminals.


Businesses can become the first line of defence against sophisticated fraud by putting ongoing and advanced fraud education for employees first and cultivating a culture of vigilance. Everyone in Asia can benefit from a more secure digital environment thanks to regional collaboration.

 
  • Advanced technologies like AI and deepfake videos are enabling cybercriminals to create hyper-realistic scams that bypass traditional security measures.

  • Asian businesses are particularly vulnerable to these scams, which have already caused millions of dollars in losses.

  • Employee education and training are crucial in fortifying defenses against AI-driven fraud.


Source: NIKKEI ASIA

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