Technical Director Ben Rees has commented in TheWealthNet on the risk of increasing investment fraud in the private wealth sector being driven by rapid developments in artificial intelligence and deepfake technology.
Ben’s comments were published in TheWealthNet, 4 August 2023, and can be found here.
“The FCA have recently warned banks, investors, and insurers about the rising risk of fraud and scams as a result of developments in AI and deepfake technology.
“The risk of cyber fraud, cyber-attacks, and identity fraud is increasing in scale, sophistication, and effectiveness as artificial intelligence (AI) becomes more widespread. A recent deepfake scam purporting to be Martin Lewis selling investments is an example of the rising threat.
“The private wealth sector is at high risk of such scams, with consumers being generally unaware of the pace of development of AI and deepfake technology and many thousands falling for scams each year.
“Currently, Authorised Push Payment (APP) fraud is at a record high. The use of AI and deepfake technology will make it easier for scammers to target victims on social media and encourage them to invest money into their scams.
“The private wealth industry is going to have to react quickly to these developments and make client education front and centre in their communication with clients.“