Banks play a critical role in safeguarding against deepfake-driven fraud given their direct handling of financial transactions and sensitive customer data, according to Federal Reserve Governor Michael Barr.
Details: Speaking in New York, Barr noted that banks use tools like multi-factor authentication and account monitoring to verify payors. As the use of deepfakes increases in payment fraud, he said identity verification processes should evolve to include AI-powered advances such as facial recognition, voice analysis, and behavioral biometrics.
Background: Deepfake attacks use generative AI to create a doppelganger with a person's voice or image, which then interacts with individuals or institutions to commit fraud.
ICBA Resources: Cyber and data security resources for community banks are available on the ICBA website.