Cyber Fraud Jumps 300% Amid a Surge in Deepfake Technology & Email-Based Attacks

Amidst the remnant struggles of the global pandemic, a cyber fraud epidemic has exploded, with the aftermath surpassing the global crime rate by 300%. These staggering figures were disclosed to the participants of Fiduciary Institute of Southern Africa's recent annual conference by Steven Powell, cavalcade in Forensics at ENSafrica.

Pursuant to the State of Email Security Report 2023 by Mimecast, phishing attempts have skyrocketed to 255 million in 2022, a number reflecting a whopping 61% hike from 2021. It was revealed that more than 70% of these emails were opened by recipients, a fact bearing testament to the increasing menace of email-based threats.

Powell shed light on the 'man in the middle' attacks, where hackers compromise email accounts and stealthily intercept communications, impersonating the original account holders, and misleading financial houses leading to illegitimate redemption of pensions and investments.

This surge in cyber fraud has cost South Africa's economy an estimated R2-billion a year—an alarming situation leading several companies to allocate millions to strengthen their cyber security defenses.

On the radar of this sweeping cyber fraud, the emergence of deepfake technology—using AI to create false visual or audio impressions of individuals—is alarming. Murray Collyer, COO of iiDENTIFii, warns South African digital banking facilitators and users about the potential threat of digital injection attacks, often facilitated using deepfakes.

With financial crimes becoming more intertwined with cyber crimes, the pursuit of strengthening cybersecurity strategies, especially in password-based systems, becomes more critical. However, emerging face biometric technology incorporating liveness checks provides some relief, offering detection of deepfakes via biometric verification of real individuals.

Among cyber fraud types enlisted by Powell are social engineering, identity theft, spoofing, phishing, vishing, and smishing, each posing a unique, alarming threat requiring immediate and robust countermeasures.

As South Africa braces itself for this cyber onslaught, the need for adaptable, resilient, and effective digital defense systems is more urgent than ever.