As a relative newcomer to the online realm, generative artificial intelligence (Gen AI) is forever reshaping the digital landscape. With applications ranging from training future doctors to accelerating content creation and software development, Gen AI offers many benefits. However, Gen AI also has an insidious side, one that scammers are leveraging to trick unsuspecting consumers and business owners into believing they are someone they are not.
Known as AI-generated deepfakes, or AI deepfakes for short, these uber-realistic digital imposters are becoming more sophisticated by the day. According to a recent report from Deloitte, a leading financial research group, losses resulting from AI deepfakes exceeded $12 billion in 2023. Alarmingly, Deloitte expects annual fraud losses to rise more than threefold by 2027.
For upstream and midstream energy companies, detecting AI deepfakes requires the right tools and strategies. Is your organization prepared for the rise of AI deepfakes? Read on to explore fraud prevention tips every oil and gas operator should know.
What Makes AI Deepfakes So Convincing?
Deepfakes are AI-generated audio clips, images, or videos that convince onlookers that someone is saying or doing something they never did. Scammers use cutting-edge AI technologies, such as generative adversarial networks (GANs) and deep learning, to produce fake content strikingly similar to the "real McCoy".
These advanced forgery tools can mimic voice patterns, facial expressions, and even mannerisms, making them very believable. Disguised as someone they trust, scammers then ask their victims for money or sensitive data. Known as phishing scams, these imposters impersonate family members, friends, or even celebrities, convincing the recipient to transfer funds or divulge account information.
How AI Deepfake Technology Works
Deepfakes leverage machine learning algorithms and cloning technologies to rework existing content or create new content. Within seconds, AI technologies can scrub data from millions of people off websites, social media platforms, and other sources.
First, the AI "learns" the targeted subject's patterns and characteristics through extensive datasets of uploaded audio, images, or videos. Next, the "trained" AI generates realistic-appearing or sounding content, such as face swaps, reenactments, or entirely new content—content that makes it appear that the targeted subject is doing or saying something they never did. Scammers then use that fabricated content to target and deceive their intended victims.
Recent Examples of Corporate AI Deepfake Fraud
While average, everyday consumers were the first to be targeted en masse by deepfake imposters, the corporate world now finds itself in the crosshairs, notably the banking and financial sectors. In corporate AI deepfake fraud cases, scammers typically target a company's financial and accounting data or request a funds transfer once they've earned the victim's trust.
According to a CNN article from last year, a finance worker at a multinational company was tricked into paying $25 million (USD) to imposters posing as company officials during a staged video conference call. The worker, based in Hong Kong, mistakenly believed that one of the participants was the company’s chief financial officer in the UK. Based on available evidence, all "participants" except the finance worker were imposters generated by AI technology.
As another example, Mark Read, the CEO of WPP, the world’s largest advertising consortium, was recently targeted by scammers using his voice clone and image, as well as the cloned image and voice of another WPP executive, to create a fake Microsoft Teams video. The imposters then used the fake video to persuade another WPP official to send them money and financial data. Thankfully, company officials discovered the scam before any funds were transferred.
Deepfake Fraud in the Energy Industry: Potential Consequences for Oil and Gas Operators
Contrary to what they might believe, oil and gas operators are not immune to the rapidly growing threat posed by Gen AI deepfakes. While impersonating a high-ranking company official, such as a CEO, CFO, or production manager, scammers could easily convince an accountant or controller to transfer bank funds, pay a fake invoice, or grant permission to access sensitive financial data.
Once compromised, and in addition to the immediate and potentially significant financial consequences, the long-term impact on oil and gas producers may include:
Cyberattacks: Deepfakes can be used for ongoing social engineering attacks when least expected, where company employees or customers are tricked into revealing sensitive data or transferring money.
Blackmail: Deepfakes can spread false information about employees or company officials, such as an owner, a CEO, or land director. Scammers can then demand payment in exchange for ceasing their insidious activities.
Damaged Reputation: Deepfakes can create counterfeit content that tarnishes a company's business reputation and erodes its bottom line. Sadly, earning back their stakeholders' trust can take months or even years.
Staying Vigilant Against Deepfake Attacks: Fraud Prevention Tips for Energy Companies
As an oil and gas producer, here’s how to protect your organization’s assets from deepfakes:
Learn How to Identify a Deepfake
While most deepfakes are very realistic, they do have flaws. Telltale signs to watch for include:
Audio: Listen for protracted pauses between words and sentences. If the speaker’s voice sounds flat, emotionless, or otherwise off, it’s probably fake.
Video: Look for patchy skin tones, unusual lighting, or unnatural body and eye movements. Poorly synchronized voice and lip movements are another red flag.
Educate Your Team
Based on what you’ve learned, train your employees, including those outside the home office, about deepfakes and how to detect them. Make it mandatory to confirm unusual requests involving financial transactions or sensitive data. Because most successful cyberattacks are due to human error, encourage your team to “trust their gut” whenever a request seems suspicious.
Implement Strict Internal Controls
Ensure your employees clearly understand which team members can request and approve financial transactions, the approval process when making requests, and how requests are validated internally. Implement dual controls that require more than one employee to initiate and/or approve transactions.
Modernize Your Cybersecurity Measures
AI deepfake technologies are constantly evolving, making it essential to adopt cutting-edge cybersecurity strategies that can detect even the most sophisticated attacks. Using modern oil and gas accounting software, implement robust authentication protocols that restrict access to sensitive data, systems, and accounts. Set up multi-factor authentication or biometrics verification to further minimize the risk of unauthorized access.
Protect Your Company’s Assets with PakEnergy’s Robust Energy Accounting Software Solutions
At PakEnergy, we know a thing or two about AI deepfakes and how they operate. Designed by oil and gas operators for upstream and midstream oil and gas operators, our automated, state-of-the-art oil and gas accounting software platform offers numerous built-in features, including bank-grade security controls and PII access restrictions, that empower organizations to identify and neutralize scammers who use AI deepfake technologies.
Backed by free staff training and 24/7 customer support, our automated accounting solutions for energy companies prevent fraud losses, allowing our thousands of satisfied customers across North America to sleep better at night!
