Citing a U.S. Department of the Treasury report, attorney and fintech executive Tom Oscherwitz warns that generative AI-powered “deepfakes” (for deep learning fakes) are giving criminals new ways to defraud dealers and finance sources.

“Fraudsters have used generative AI to falsify identity documents, passports, photographs and videos to circumvent know-your-customer (KYC) requirements and verification checks,” writes Oscherwitz, who serves as general counsel for Informed, in a post at DealerELITE.

The report, issued in November by the Treasury’s Financial Crimes Enforcement Network (FinCEN), lists deepfakes among the sources of increasing suspicious activity reports from financial institutions. Oscherwitz says new tools, such as consortium data, which leverages multiple legitimate sources to trace immutable “data residue,” can help detect fraud in ways traditional methods can’t.

“As the threat of deepfakes continues to grow, it is essential for dealers and financial institutions to stay ahead of fraudsters by adopting advanced AI-driven fraud detection solutions,” he writes.

Read more at DealerELITE