Deepfakes and artificial intelligence-augmented cybercrime pose a growing danger, according to Towergate's recent warning.
In the rapidly evolving digital landscape, the importance of cyber insurance has never been more pronounced, according to Marc Rocker, Head of Cyber at Towergate Insurance. As cybercriminals continue to develop more sophisticated methods, having a safety net provided by cyber insurance is essential for businesses.
Towergate Insurance has issued a warning about the growing risks of artificial intelligence (AI) and deepfake technology. The warning comes in response to a surge in AI-generated deepfakes being used by cybercriminals. These deepfakes can take the form of synthetic videos, images, and audio files, and are used to impersonate individuals and infiltrate organizations.
One recent incident involved a finance worker transferring $25 million after being tricked by a deepfake of their CFO during a video call. Another incident saw a deepfake voice of an IT staff member convincing an employee to share a multi-factor authentication code, compromising company data.
To protect themselves against fraud, reputational damage, and cybercrime related to AI-generated deepfakes, businesses should adopt a layered, proactive approach. This approach should combine technology, vigilance, and compliance.
Employee Education and Training
Cultivate a culture of skepticism about unexpected or unusual video/audio communications. Train employees with scenario-based exercises to recognize deepfake red flags and emphasize verifying requests—especially those involving sensitive actions—through multiple channels before proceeding.
Invest in AI-Powered Deepfake Detection Tools
Deploy specialized technologies like Reality Defender, Sensity AI, or Bitdefender Digital Identity Protection to analyze and detect manipulated audio, video, and images in real time. Integrating these tools into workflows can provide early detection and reduce risk exposure.
Implement Multi-Factor Verification
Don't rely solely on voice or video authentication. Use multi-factor authentication methods such as separate secure communication channels, encrypted messaging, one-time codes, or biometrics to confirm sensitive requests, especially from executives.
Develop a Deepfake Incident Response Plan
Prepare a clear, practiced plan that defines roles for detection, communication, and remediation. Train key stakeholders to respond quickly and maintain consistent messaging to minimize reputational damage during a deepfake crisis.
Legal and Regulatory Compliance
For sectors under specific laws like California’s CCPA/CPRA and New York’s SHIELD Act, duty-bound implementation of reasonable security measures and data safeguards reduces legal liability arising from deepfake-enabled social engineering attacks.
Adopt AI Governance Frameworks
Use frameworks such as NIST’s AI Risk Management Framework (AI RMF) to manage risks associated with "Shadow AI," ensuring that AI tools for defense are effectively governed and aligned with organizational risk tolerance.
Rocker also noted that AI is being used both to attack and defend, and the ability to distinguish between genuine and synthetic content is becoming crucial for cyber risk management. He warned that these innovations should not distract from the very real risks associated with AI and deepfake technology.
Towergate Insurance is urging businesses to take proactive steps to protect themselves against these evolving threats. This includes regular employee training, the use of AI detection tools, and strong authentication procedures. Businesses should educate employees on deepfake red flags and treat unexpected video or audio communications with caution.
In light of increasing AI-generated Deepfake threats, Towergate Insurance advises businesses to prioritize employee education and training, aiming to cultivate a culture of skepticism and equip employees with the skills to recognize Deepfake red flags. Additionally, Industries should consider investing in AI-Powered Deepfake Detection Tools to bolster their defense against these sophisticated attacks.
