KYC AML Guide: the Clock shows the average reeding time of the blog08 min Read


KYC AML Guide: the Clock shows the average reeding time of the blogJuly 4, 2024

AI vs. Deepfakes: Ensuring Security and Compliance in a Digital World

Imagine a world where anyone can make a video of a public figure saying something they didn’t say, or where their voice can be cloned to bypass security measures. This is not science fiction; it is already happening. Risks in the digital world are always evolving along with it. It has never been more crucial to ensure compliance and safety. We must acknowledge the advantages of artificial intelligence while being aware of potential risks, particularly those posed by deepfakes. How can we protect our identities, maintain trust, and ensure our digital devices are secure?

Belal Mahmoud

KYC Product Consultant

Artificial intelligence has advanced significantly and transformed communication, employment, and daily life. AI is revolutionizing our daily lives by simplifying and streamlining tasks. Examples include ChatGPT and DALL-E, sophisticated tools, and virtual assistants like Siri and Alexa. However, enormous power also entails considerable responsibility. The rise of deepfakes is one of the most unexpected developments in AI technology. More than a hundred deep fake video advertisements starring British Prime Minister Rishi Sunak were found on Meta between December 8, 2023, and January 8, 2024.

Generative AI

Generative AI, a subset of human intelligence, allows machines to create new and original content such as images, audio files, and digital art, instead of processing existing data. These techniques learn from the patterns in the data structure to make predictions and create new content similar to what they were trained for. This approach reflects human creativity, enabling AI to create unique graphics, logical images, and textual content, demonstrating the ability of innovation and creativity.

The two most popular types of generative AI models are:

  • Transformer-based models:  AI-like GPT uses information collected from the web to create written content, from articles to publications and white papers.
  • Generative Adversarial Networks or GANs: AI that generates images and multimedia and integrates images and text. GANs often pose the greatest risk of creating false information from deepfakes, because they can create logical images that are difficult to recognize or artificial intelligence.

The Good and Bad of Generative AI

Like any technological advancement, generative AI has enormous advantages as well as concerns. On the one hand, it’s revolutionizing the way we produce and enjoy media, and programs like DALL-E and ChatGPT-3 are utilizing this capacity to bring us joy. They simplify tasks and stimulate creativity in novel ways. It has a sinister side, though. Once considered innovative, deepfakes are now evolving into more complex art forms, including professional computer-generated imagery, and posing risks for fraud and false information. While artificial intelligence can provide interesting material, it also provides criminals with the means to produce fraudulent and deceptive information that compromises our privacy and cybersecurity, such as phishing emails. The fact that phishing attempts rose by 1,265% in 2023 as a result of AI is not shocking.

What are Deepfakes?

Deepfake is a type of digital forgery where real-looking but fraudulent photos, films, or recordings are produced using machine learning and human intelligence. One way to generate manipulated media files is to overlay someone else’s face on another person’s body or alter a person’s speech, expressions, and body language in a video. According to a recent survey, 66% of cyber security specialists questioned had seen a link between cyberattacks and deepfakes. For example, using sophisticated voice recording techniques, criminals have successfully imitated the voice of a bank manager in Dubai. They managed to get a Hong Kong bank manager to hand over $35 million to the criminals

Impact of Deepfakes on e-KYC

In the financial sector, Deepfake has found ways to complete eKYC through automated video identification. Recently, high-profile cases of actors, executives, and members of the public involved in these scams have hit the headlines. They are cheated with fake content, causing huge losses both in money and reputation. These systems that facilitate online customer identification are increasingly being used by banks and various online services. However, they are vulnerable to biometric spoofing attacks, including attacks that use spoofing technology.

Subtle fake media such as edited videos or photos can be used to change or manipulate faces during the EKYC process, leading to fake identity verification. There are already many real-world examples of AI-generated deep faxes to bypass EKYC checks. The president was duped into paying $243,000 into a bank account in 2019 using a phony film. Similar to this, in 2021, a gang of thieves tried to obtain bank accounts holding millions of dollars by deceitfully evading EKYC verification.

Mitigating Deepfake Fraud Through KYC Solutions

Enhanced Biometric Verification:

The development of sophisticated biometric testing methods that can verify the “liveness” of a subject can help prevent counterfeiting deepfakes. Systems such as 3D face mapping, iris recognition, and skin type analysis can provide security as they are resistant to deepfake technology.

Liveness Detection

Combating complex fraud requires real-world experience. Liveness Detection is a very important tool for identity verification in KYC. This technology detects signs of life during the authentication process, effectively preventing deepfake attacks.

Layered Identity Verification:

Traditional verification cannot withstand AI-powered attacks, and as new techniques such as biometrics become successful, these biometric sensors will inevitably be compromised as AI advances. Therefore, a multifactor analysis method with multiple analysis methods is important. Determinants such as location, human behavior, document verification, AI-based conversation, video, and facial recognition provide a comprehensive, flexible, and multi-faceted verification process and give individuals peace of mind.

Bottom line

There are a lot of potential and challenges associated with the development of artificial intelligence technologies. These developments present chances for improved performance and design, but they also give rise to worries about dependability and safety. Deepfake is a particularly obvious threat, highlighting the need for robust detection and processing methods. In the EU, government initiatives such as eIDAS reflect efforts to improve digital security and build trust in online relationships. In the future, it will be important to strike a balance between innovation and responsibility, ensuring that we take advantage of AI while avoiding misuse.

Data Spike simplifies the KYC process, offering a complete solution for companies. With real-time document verification, AML checks, and due diligence, Data Spike ensures customers are present effectively, maintaining compliance and preventing fraud. It’s a complete solution for companies looking to simplify their onboarding experience and improve security.


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Belal Mahmoud
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Belal possess over 8 years experience in the KYC Identity Verification industry. He has consulted KYC solutions for over 20 new economy companies at DIFC and ADGM while ensuring a seamless technical integration and helped in jurisdictional compliance audits.