How to Combat the Threat of Deepfakes in Financial Services | Trulioo | FF News at Money20/20 USA

How to combat the growing deepfake threat in financial services.

At Money20/20 USA 2024 we spoke to Zac Cohen, Chief Product Officer at Trulioo, a company at the forefront of ID verification. The fight against fraud is facing fresh threats from the rise of generative AI and deepfakes. Financial institutions are under increasing pressure to protect their customers. After all, identity theft accounted for almost $23 billion lost to fraud in 2023.

Here Cohen talks about the need for layered defences, agile adaptation, and partnerships with trusted technology providers to stay ahead. We also find out about Trulioo’s scalable approach which turns AI around from a threat to a tool for good.

Using Generative AI for Good… And Bad

Zac Cohen introduces the interview by explaining that Trulioo are leaders in identity verification, working on revolutionising the Know Your Customer (KYC) and Know Your Business (KYB) sides of an organisation. They use data, documents, and fraud intelligence within a customizable orchestration platform to ensure seamless and secure onboarding for individuals and businesses alike.

It’s a fresh take on fraud prevention which is often seen as a reactionary game of whack-a-mole, something Cohen attempts to dispel. Drawing parallels to the early days of internet cybersecurity, he noted that as fraud tactics grow more sophisticated, so too must the technologies designed to counter them.

When it comes to GenAI, there is clearly potential for it to be good and bad. While AI enhances Trulioo’s capabilities in fraud prevention through advanced machine learning models, it also empowers bad actors to exploit its tools for malicious purposes. The rise of GenAI has expanded the scope of threats, making it crucial for organisations to leverage cutting-edge defences. Trulioo has responded by embedding AI-driven protections within its systems, helping clients stay ahead of emerging risks.

Deepfakes: A Growing Concern

The other major concern and one which is exacerbated by new technology is deepfakes. While still a minority contributor to fraud cases, it poses a serious threat due to its potential to cause significant harm when exploited. And the threat is growing. Cohen emphasised that businesses must adopt proactive measures to prevent these attacks from entering their ecosystems, as even a small breach can damage reputation and trust.

Trulioo combats deepfake-related threats through a layered defence strategy, including liveness detection tools that verify both the authenticity of presented faces and documents. By addressing presentation attacks (e.g., physical disguises) and injection attacks (e.g., AI-generated videos), Trulioo’s technology ensures robust protection against increasingly sophisticated fraud attempts.

One example Cohen shared involved a legacy data breach from a now-defunct crypto organisation. Fraudsters used the stolen identities to orchestrate a large-scale fraud operation, targeting a different vertical years later. Trulioo’s systems quickly flagged the anomalies and halted the operation, underscoring the importance of advanced detection tools and cross-vertical learnings in combating such threats.

For Cohen, advanced fraud detection is like a microscope that reveals minute inconsistencies invisible to the human eye. Trulioo’s AI-powered systems amplify this capability, offering unparalleled precision in identifying irregularities across millions of data points.

Advice for Organizations Facing Deepfake Threats

So what can companies grappling with deepfake risks do? Cohen offered some practical guidance:

• Partner with Experts: Work with technology providers that specialise in fraud prevention and have a proven track record.
• Adopt a Layered Approach: Relying on a single solution is insufficient. Implement multiple tools and modules to cover diverse threat vectors.
• Stay Agile: Continuously update your defences to match the evolving sophistication of attackers.
• Leverage AI: Use advanced machine learning and orchestration systems to detect, analyse, and respond to threats with speed and accuracy.

Reflections on Money20/20 USA 2024

We also got some thoughts on the event where the conversation took place. He’s been coming to Money20/20 for a decade and praised the event as the premier gathering for fintech innovation. He emphasised its role in fostering collaboration, showcasing cutting-edge technology, and building a community united by the shared goal of protecting the digital economy. For Trulioo, the conference is a vital platform for partnerships and a window into emerging trends shaping the future of fraud prevention and identity verification.

To watch more great interviews from the event, head here.