Can AI-generated deepfakes compromise Know Your Customer (KYC) authentication?
In the world of finance, processes like KYC (Know Your Customer) and AML (Anti Money laundering) are vital safeguards, verifying customer identities and preventing fraud. A robust KYC framework is essential for combating financial crimes, ensuring compliance, and protecting business reputation. With the rise of AI-generated deepfakes or document replicas, organisations are re-evaluating their KYC procedures for enhanced security.
What are the challenges of deepfakes in KYC processes and how can businesses spot and address the threats?
Pierre-Antoine Boulat, FDM North America Delivery Lead for Risk, Regulation & Compliance and Patrick Wake, FDM Group Director of Information Security, discuss.
According to Pierre-Antoine Boulat, ‘An arm’s race between money launderers and financial compliance and law enforcement is all but certain. The tools that enable document counterfeiting, physical impersonation and convincing messages “en masse” are also deployed to counter such nefarious strategies and tactics: GenAI.’
According to Patrick Wake, ‘Deepfakes created through advanced AI techniques like generative adversarial networks (GANs), pose a significant challenge for identity verification processes. These AI-generated fakes can mimic various documents and personal details so convincingly that they threaten the reliability of traditional verification methods, raising concerns about security and fraud prevention.’
How deepfakes are made
Patrick explains that ‘deep fakes can be created with openly available tools like Deepfakes Web and Faceswapper.ai, as well as community-created and downloaded from platforms like GitHub. This raises concerns about their misuse in identity checks, especially in KYC procedures.
These models use neural networks to create realistic facial expressions, lip movements and voices, making the fake content look remarkably authentic. Techniques such as facial landmark detection and audio synthesis further enhance the believability of deepfakes.’
Mimicking documents and personal information
Deepfake technology has shown it can replicate various documents and personal attributes quite accurately. Examples include fake robocalls impersonating public figures like US President Joe Biden and complex financial scams where deepfakes impersonate company executives, causing significant financial losses. Deepfake creators use AI algorithms to manipulate text, signatures, and other document features, creating fake documents that are hard to spot. Advances in natural language processing help generate realistic text, adding to the authenticity of fabricated documents.
Improving Deepfake Detection
Patrick says, ‘efforts are underway to enhance detection technologies in response to the growing threat of deepfakes. One approach involves using advanced machine learning algorithms trained on large datasets of real and fake content. These algorithms analyse subtle differences in facial expressions, language patterns and context to identify signs of manipulation.
Researchers are also exploring biometric authentication methods like facial recognition and voice analysis to improve detection accuracy. Real-time detection systems are being developed to quickly analyse incoming media streams and flag suspicious content.’
Pierre-Antoine says, ‘standardised patterns of behaviours or financial transaction history can be recognised as falsified by trained professionals, including digital doppelgängers. Human beings with the right risk management mindset and penetration techniques supported by AI will continue to stand against fraudulent methods.
Furthermore, other techniques can be leveraged and will find expanded areas of application to complement Generative AI in the fight against counterfeit or fake identities. Video-proofing practices as well as common sense countermeasures difficult for trained electrons to master (think “Captcha” tests) will flourish. Blockchain certification and government-sponsored E-Identification will at last find their generic and welcome use.’
How to mitigate fraud risks
Pierre-Antoine maintains that ‘the pandemic ways of working and FinTech innovation had introduced remote identification well before GenAI became headline material. Online fraud is a constant irritant, and devastating for its victims, but society through regulation and education will manage to fight back.
Despite privacy concerns, platforming of shared identity details (already in use for credit scoring, criminal history, driving abilities, immigration statuses and health data for instance, across sectors and jurisdictions) will expand to physical features, since those are used for identification (prints, face, voice) as well as criminal purposes.
Collaboration among industry stakeholders and regulatory bodies
Patrick believes collaboration between industry, academia, and government is crucial for advancing detection solutions and staying ahead of new threats. Despite progress, challenges remain, including the risk of adversaries evading detection through clever manipulations. Continued research and innovation are needed to strengthen defences against deepfake threats.
According to Pierre-Antoine, areas of collaboration between the public and private sectors, be it for profit or not, and government agencies including law enforcement are numerous in this field. For organizations, it’s an opportunity to converge physical and digital security counter-measures and adopt a holistic risk management posture.
While deepfake technology poses significant challenges for identity verification, ongoing efforts to improve detection offer hope in the fight against fraud. By combining advanced algorithms, biometric authentication, real-time analysis, and collaborative efforts, businesses can better protect themselves and their customers from the dangers of AI-generated fake identities.
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techUK – Unleashing UK Tech and Innovation
The UK is home to emerging technologies that have the power to revolutionise entire industries. From quantum to semiconductors; from gaming to the New Space Economy, they all have the unique opportunity to help prepare for what comes next.
techUK members lead the development of these technologies. Together we are working with Government and other stakeholders to address tech innovation priorities and build an innovation ecosystem that will benefit people, society, economy and the planet - and unleash the UK as a global leader in tech and innovation.
For more information, or to get in touch, please visit our Innovation Hub and click ‘contact us’.
Tech and Innovation Summit, 6 Nov (rescheduled date)
Emerging technologies will be debated and explored at our annual Tech and Innovation Summit, taking place on 6 November. This campaign week will directly feed into the themes discussed at the Summit.
techUK’s flagship Tech and Innovation Summit returns to traverse the extraordinary and ground-breaking discoveries made possible by the application of emerging and transformative technologies.
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Learn more about our Unleashing Innovation campaign:
Sprint Campaigns
This campaign explored how the UK can lead on the development, application and commercialisation of space technologies and ultimately realise the benefits of the New Space Economy.
These technologies include AI, quantum, lasers, robotics & automation, advanced propulsion and materials, and semiconductors.
Activity has taken the form of roundtables, panel discussions, networking sessions, Summits, thought leadership pieces, policy recommendations, and a report.
Get in touch below to find out more about techUK's ongoing work in this area.
Event round-ups
Report
Insights
Get in touch
Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, he is techUK's Programme Manager for Emerging Technologies, covering dozens of technologies including metaverse, drones, future materials, robotics, blockchain, space technologies, nanotechnology, gaming tech and Web3.0.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
This campaign has explored how the UK can lead on the development, application and commercialisation of the technologies set to underpin the Gaming & Esports sector of the future.
These include AI, augmented / virtual / mixed / extended reality, haptics, cloud & edge computing, semiconductors, and advanced connectivity (5/6G).
Activity has taken the form of roundtables, panel discussions, networking sessions, Summits, and thought leadership pieces. A report featuring member case studies and policy recommendations is currently being produced (to be launched in September 2024).
Get in touch below to find out more about contributing to or collaborating on this campaign.
Event round-ups
Insights
Get in touch
Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, he is techUK's Programme Manager for Emerging Technologies, covering dozens of technologies including metaverse, drones, future materials, robotics, blockchain, space technologies, nanotechnology, gaming tech and Web3.0.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
Running from July to December 2024, this campaign will explore how the UK can lead on the development, application and commercialisation of web3 and immersive technologies.
These include blockchain, smart contracts, digital assets, augmented / virtual / mixed / extended reality, spatial computing, haptics and holograms.
Activity will take the form of roundtables, workshops, panel discussions, networking sessions, tech demos, Summits, thought leadership pieces, policy recommendations, and reports.
Get in touch below to find out more about contributing to or collaborating on this campaign.
Upcoming events
Get in touch
Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, he is techUK's Programme Manager for Emerging Technologies, covering dozens of technologies including metaverse, drones, future materials, robotics, blockchain, space technologies, nanotechnology, gaming tech and Web3.0.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
Campaign Weeks
Our annual Campaign Weeks enable techUK members to explore how the UK can lead on the development and application of emerging and transformative technologies.
Members do this by contributing blogs or vlogs, speaking at events, and highlighting examples of best practice within the UK's tech sector.
Summits
Tech and Innovation Summit 2023
Tech and Innovation Summit 2024
Laura Foster
Laura Foster
Laura is techUK’s Head of Programme for Technology and Innovation.
She supports the application and expansion of emerging technologies, including Quantum Computing, High-Performance Computing, AR/VR/XR and Edge technologies, across the UK. As part of this, she works alongside techUK members and UK Government to champion long-term and sustainable innovation policy that will ensure the UK is a pioneer in science and technology
Before joining techUK, Laura worked internationally as a conference researcher and producer covering enterprise adoption of emerging technologies. This included being part of the strategic team at London Tech Week.
Laura has a degree in History (BA Hons) from Durham University, focussing on regional social history. Outside of work she loves reading, travelling and supporting rugby team St. Helens, where she is from.
- Email:
- [email protected]
- LinkedIn:
- www.linkedin.com/in/lauraalicefoster
Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, he is techUK's Programme Manager for Emerging Technologies, covering dozens of technologies including metaverse, drones, future materials, robotics, blockchain, space technologies, nanotechnology, gaming tech and Web3.0.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
Tess Buckley
Tess Buckley
Tess is the Programme Manager for Digital Ethics and AI Safety at techUK.
Prior to techUK Tess worked as an AI Ethics Analyst, which revolved around the first dataset on Corporate Digital Responsibility (CDR), and then later the development of a large language model focused on answering ESG questions for Chief Sustainability Officers. Alongside other responsibilities, she distributed the dataset on CDR to investors who wanted to further understand the digital risks of their portfolio, she drew narratives and patterns from the data, and collaborate with leading institutes to support academics in AI ethics. She has authored articles for outlets such as ESG Investor, Montreal AI Ethics Institute, The FinTech Times, and Finance Digest. Covered topics like CDR, AI ethics, and tech governance, leveraging company insights to contribute valuable industry perspectives. Tess is Vice Chair of the YNG Technology Group at YPO, an AI Literacy Advisor at Humans for AI, a Trustworthy AI Researcher at Z-Inspection Trustworthy AI Labs and an Ambassador for AboutFace.
Tess holds a MA in Philosophy and AI from Northeastern University London, where she specialised in biotechnologies and ableism, following a BA from McGill University where she joint-majored in International Development and Philosophy, minoring in communications. Tess’s primary research interests include AI literacy, AI music systems, the impact of AI on disability rights and the portrayal of AI in media (narratives). In particular, Tess seeks to operationalise AI ethics and use philosophical principles to make emerging technologies explainable, and ethical.
Outside of work Tess enjoys kickboxing, ballet, crochet and jazz music.
- Email:
- [email protected]
- Website:
- tessbuckley.me
- LinkedIn:
- https://www.linkedin.com/in/tesssbuckley/
Usman Ikhlaq
Usman Ikhlaq
Usman joined techUK in January 2024 as Programme Manager for Artificial Intelligence.
Prior to joining techUK, Usman worked as a policy, government affairs and public affairs professional in the advertising sector. He has also worked in sales and marketing and FinTech.
Usman is a graduate of the London School of Economics, BPP Law School and Queen Mary University of London.
When he isn’t working, Usman enjoys spending time with his family and friends. He also has a keen interest in running, reading and travelling.
Authors
Pierre-Antoine Boulat
