Deepfake lovers swindle victims out of $46M in Hong Kong AI scam

The police operation resulted in the seizure of computers, mobile phones, and about $25,756 in suspected proceeds and luxury watches from the syndicate's headquarters. Police said that victims originated from multiple countries, including Hong Kong, mainland China, Taiwan, India, and Singapore.

A widening real-time deepfake problem

Realtime deepfakes have become a growing problem over the past year. In August, we covered a free app called Deep-Live-Cam that can do real-time face-swaps for video chat use, and in February, the Hong Kong office of British engineering firm Arup lost $25 million in an AI-powered scam in which the perpetrators used deepfakes of senior management during a video conference call to trick an employee into transferring money.

News of the scam also comes amid recent warnings from the United Nations Office on Drugs and Crime, notes The Record in a report about the recent scam ring. The agency released a report last week highlighting tech advancements among organized crime syndicates in Asia, specifically mentioning the increasing use of deepfake technology in fraud.

The UN agency identified more than 10 deepfake software providers selling their services on Telegram to criminal groups in Southeast Asia, showing the growing accessibility of this technology for illegal purposes.

Some companies are attempting to find automated solutions to the issues presented by AI-powered crime, including Reality Defender, which creates software that attempts to detect deepfakes in real time. Some deepfake detection techniques may work at the moment, but as the fakes improve in realism and sophistication, we may be looking at an escalating arms race between those who seek to fool others and those who want to prevent deception.