The impending recession, budget cuts, business closures, increasing M&A activity and more caused sweeping changes to the identity space in 2023 that are still cutting in as the holiday season near.
In 2024, we can expect to see a flight to stability and consolidation in this market as vendors are bought out, forced to go out of business and continue to streamline operations. As a result, identity verification companies will be forced to innovate or risk losing their business, said Jumio Chief Executive Officer Robert Priggen (pic), in a note today (Nov 22).
Deepfakes will accelerate identity-related scams and fraud in Asia
Echoing Prigge’s call Jumio Vice President of Asia Pacific Frederic Ho said Artificial intelligence (AI) is playing an increasingly significant role in enhancing organisational efficiency and automating processes.
However, on the flip side of this technological revolution, there is an alarming trend where bad actors are harnessing AI to execute sophisticated fraud attacks.
A recent incident in Hong Kong serves as a stark example — six people were arrested for their involvement in a fraud syndicate that utilised AI to fabricate images for loan scams targeting banks and money-lenders.
This case marks the first instance where law enforcement in Hong Kong has made arrests linked to deepfake technology, and unfortunately, similar incidents will continue to occur across the region.
Easy access to AI has empowered fraudsters. To stay ahead, we will see more organisations tapping onto AI solutions in the fight against AI-driven cyber threats.
Businesses must look to implement multimodal, biometric-based identity verification systems that can detect deepfakes and thwart the misuse of stolen personal credentials.
This enables them to fortify their defences against sophisticated scams, ensuring highest levels of security while cultivating digital trust in this evolving age of disinformation.
As more businesses venture across borders, adopting a flexible and AI-driven compliance process will become imperative.
He added, as Asia Pacific continues to position itself for economic growth and offer numerous business opportunities, organisations are expanding their businesses in pursuit of gaining more regional customers.
However, the rising prevalence and scale of fraud and money laundering, combined with tighter and constantly evolving regulations, point to greater compliance challenges for companies in their future expansion efforts.
In response to the changing regulatory landscape across different markets, we can expect to see more organisations leveraging generative AI to automate and improve efficiency of their compliance processes and adapt to the dynamic shifts in the regulatory landscape of each country.
This can be instrumental in enabling fast implementation while ensuring cross border regulatory compliance.