Protecting Banks from AI-Powered Deepfakes

Deepfake technology is no longer a futuristic threat—financial institutions are already grappling with its implications, especially as advances in AI amplify the capabilities of bad actors. Fraud-related losses tied to deepfakes hit $12 billion in 2023, and industry estimates project they could soar to $40 billion by 2027. As Sara Seguin, a fraud and identity risk advisor at Alloy, explained to Rachel Koning Beals on the BAI Banking Strategies podcast, the speed and scale of deepfake-enabled fraud present major challenges for banks. 

The Growing Threat of Voice Cloning 

While video deepfakes often make headlines, Seguin noted that audio-based fraud—like voice cloning—is a more immediate concern for financial institutions. These attacks can take many forms, from impersonating customers in an effort to trick call center agents to targeting bank clients directly with convincing scams. Fraudsters leverage deepfake technology to execute these schemes at scale, increasing the complexity and cost of defending against them. 

Fraud Prevention in Action 

Financial institutions are taking varied approaches to combating deepfake threats. Some are adopting voice biometrics and real-time detection platforms, while others are upgrading existing fraud detection systems. The challenge, Seguin highlighted, is balancing proactive investment in cutting-edge technology against the risks of reacting only after an incident occurs. 

Beyond technology, human factors remain critical. Seguin emphasized the need for continuous education—both for internal fraud teams and external customers. Training programs should focus on recognizing emerging threats and sharing intelligence across teams to ensure everyone is prepared for evolving scams. 

Key Steps for Banks 

Seguin offered three core recommendations for banks: 

• Education: Stay informed about industry trends and ensure all staff understand the risks and tactics fraudsters are using. 

• Communication: Share intelligence across the organization and engage leadership early to align on strategic responses. 

• Technology: Evaluate current tools and consider investments in scalable, adaptive platforms that can detect and mitigate deepfake threats. 

As deepfake technology advances, collaboration across the financial sector will be critical. Fraud prevention, Seguin emphasized, isn’t a competitive advantage—it’s a collective effort to protect the industry and its customers. 

Fraudsters are already finding success with deepfakes and voice cloning, Seguin noted, and their methods are likely to spread quickly across financial institutions. “As soon as they see success with one, they will try different types of schemes with others,” she said.