A recent study by Regula, a global developer of identity verification solutions, reveals a dangerous gap in preparedness: nearly half of businesses admit they are only partially confident in their ability to detect deepfakes, leaving them vulnerable to escalating fraud risks. The fight against this threat remains a challenge, particularly for the traditional Financial sector, which reports the lowest confidence levels.
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Based on Regula’s study, “The Deepfake Trends 2024,” 59% of businesses consider video deepfakes a serious threat, while 58% feel the same about audio deepfakes.
Certain industries and regions feel the impact more acutely:
– In the Financial Services sector, 66% of respondents rank audio deepfakes as a moderate to significant risk.
– Mexico leads globally in deepfake threat perception, with 83% concerned about video deepfakes and 85% about audio deepfakes.
– By contrast, only 50% of U.S. organizations express concern about video deepfakes; meanwhile, Germany ranks slightly higher, with 57% of organizations worried.
Notably, businesses that have previously experienced identity fraud are twice as likely to view deepfake threats as a major concern.
Confidence Levels Lag Behind Awareness
Despite widespread awareness, on average, 42% of businesses admit they are only “somewhat confident” in their ability to detect deepfakes. Germany leads in uncertainty, with only 47% of businesses expressing strong confidence in their defenses, while the UAE (63%) and the U.S. (60%) show the highest levels of confidence.
A curious divide emerges within the Financial Services sector:
– Traditional banks are among the least confident, with only 49% feeling prepared.
– In contrast, FinTech companies report the highest confidence levels at 63%.
Technology Is the Game-Changer
The study reveals that businesses adopting online identity verification (IDV) early are significantly more prepared. Those with seven years of IDV experience report 20% higher confidence than recent adopters.
However, tackling deepfakes in-house can backfire. Companies building their own IDV systems reported higher average losses—$515,000 compared to $444,000 for those using ready-made solutions—underscoring the complexity of fighting fraud effectively.
Bridging the Confidence Gap
The report also uncovers a disconnect between owners and managers:
– 76% of business owners are confident in their ability to manage deepfake threats.
– Only 47% of managers feel the same, reflecting the day-to-day challenges of mitigating fraud.
“This gap reflects differing priorities. Owners focus on strategy, and might not fully understand the operational complexities involved in detecting and mitigating these threats on a day-to-day basis. Managers deal with operational challenges firsthand, which may make them more cautious or skeptical about their organization’s actual capabilities. Whatever the reasons are, it is vital that both groups understand the capabilities of different anti-deepfake technologies. Regula’s complete IDV solution with its liveness-centric approach is highly advanced and able to prevent all kinds of identity fraud, including deepfakes,” comments Henry Patishman, Executive Vice President of Identity Verification Solutions at Regula.
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