New Research Suggests Kiwi Consumers And Businesses Are Already Losing Tens Of Millions To Deepfake Scams

• With the rise of generative AI technology, at least 18% of New Zealand businesses and 29% of Kiwis say they’ve been targeted by deepfake scams, in the last 12 months, with losses estimated to be tens of millions of dollars1.
• Despite the threat, 25% of Kiwis and 26% of businesses have not taken any measures to protect themselves from deepfake scams.
• Mastercard has partnered with Stacey Edmonds, a generative AI and deepfake educator, to launch a six-part educational series on preventing these impersonation scams.

Auckland, New Zealand, Thursday 10 October 2024 – It pays to do a double take when someone asks you for money. Deepfake scams – those that utilise deepfake technology to manipulate images, video and audio to defame individuals or trick them into losing money and disclosing personal information – are increasingly prevalent.

New research commissioned by Mastercard shows at least 18% of New Zealand businesses and 29% of Kiwis have been targeted by deepfake scams in the last 12 months, with losses estimated to be tens of millions of dollars[1]. “However, given many victims of these scams are not aware that they have been targeted, this is potentially only the tip of the iceberg,” said Mallika Sathi, Vice President, Security Solutions, Australasia, Mastercard.

While at least 29% of Kiwis have been targeted by a deepfake scam in the last year, of those targeted, 10% fell for the manipulated content and lost money to the scams. Over a quarter of those targeted (27%) report an attempt to trick them out of a non-financial loss, such as identity theft or personal data.

Despite the financial and non-financial threats, one-quarter of Kiwis (25%) admit to not taking any measures to protect themselves and their loved ones against deepfake scams.

“Generative AI technology, while offering incredible potential, can be harnessed in both beneficial and concerning ways. Increasingly we see it is being used to manipulate consumers and businesses out of money in the form of scams involving deepfakes. As deepfakes can be utilised in many different types of scams, including video, images and audio, we encourage Kiwis to remain informed, vigilant and educated as the threat increases with the development of AI technology,” said Sathi.

Grandparents are considered by Kiwis to be the most vulnerable to deepfake scams, with a quarter of those surveyed (26%) believing they are the most likely family member to be tricked, followed by 18% thinking their mums are the most vulnerable. However, only one-fifth of Kiwis (21%) report educating themselves and their loved ones about deepfake scams and AI.

Increasing levels of education could help boost Kiwis’ confidence in distinguishing deepfake scams from genuine requests. When asked, only 12% of respondents were truly confident they could detect a deepfake scam, while 34% of Kiwis admit they’re not confident in their detection abilities.

It’s not just scams testing our competence, with one-fifth of Kiwis (19%) seeing manipulated videos or images of high-profile individuals online over the past year. Of those, one-fifth (19%) saw an impersonation of former U.S. President Donald Trump, 13% saw an impersonation of American singer-songwriter Taylor Swift, and 12% saw an impersonation of New Zealand’s very own TV presenter Hilary Barry. Unsurprisingly, 41% of Kiwis are less trusting in communication from celebrities and influencers compared to this time last year.

The research also found Kiwis’ trust in digital platforms has fallen in the year gone by. 61% of Kiwis are less trusting of social media platforms [2], while 40% are less trusting of emails, and 37% are less trusting of phone calls. Of the deepfake scams reported in the research, emails proved the most popular platform for scammers (13%), followed by social media platforms (17%) [3], and phone calls (7%).

It’s not just Kiwi consumers feeling the threat of deepfake scams. Mastercard’s research shows at least 18% of New Zealand businesses have been targeted by the scams in the last 12 months. Of those, 47% have fallen for the manipulated content.

To trick businesses out of money, the deepfake scams reported in the research commonly posed as customer service (38%), clients (29%) and suppliers/vendors (26%). Employees, CEOs, board members, and law enforcement were also impersonated in scams.

There are many measures businesses can take to prevent deepfake scams. Among New Zealand’s businesses:

• 43% have implemented identification verification to access sensitive information
• 38% provide their team with cybersecurity training
• 29% have conducted financial transaction training
• 26% have implemented identification protocols for payment requests
• 26% report not taking any measures to protect against deepfake scams

However, with 22% of business decision makers lacking confidence that staff can detect deepfake scams, there remains a need for improved digital literacy.

“Never give out your personal information or account data without verifying the identity of who you are talking to. You should monitor your accounts and statements for transactions you don’t recognise, and if you suspect there has been fraudulent activity, contact the financial institution that issued your card immediately,” said Sathi.

As an expert in protecting payments, Mastercard is committed to stopping scams and protecting consumers from cybercrime. It is investing heavily in innovative technology and expertise to educate, empower and protect consumers worldwide. Recently, Mastercard announced its agreement to acquire threat intelligence company, Recorded Future.

“Scammers have become more brazen and sophisticated, taking advantage of the latest technologies like AI and other means to deceive consumers. Mastercard is committed to providing Kiwis with the insights and tools to help protect themselves and their loved ones from scams,” said Sathi.

SCAM SECURE IN 60 SECONDS

To help consumers and businesses identify and protect themselves against deepfake scams, Mastercard has partnered with an educator in generative AI and deepfake, Stacey Edmonds, to launch a six-part educational series on preventing scams.

Accessible on Mastercard’s YouTube, the series provides practical tips on how to stay safe from deepfake scams. These include:

1. Have a family code word
2. Build your digital literacy
3. Practice FAKE to identify a deepfake
4. Use a VPN on open networks
5. Check and verify the source
6. Trust your instincts

Visit Mastercard’s YouTube channel to watch the full six-part Scam Secure series, where you can also find its Travel Secure and Cyber Secure series.

Businesses can also visit the Mastercard Trust Centre to further educate themselves about cybersecurity.

1] The survey indicates New Zealand consumers and businesses have lost tens of millions of dollars to deepfake scams in the last 12 months. This is supported by the incident rate of reported deepfake scams within the New Zealand business and consumer sample groups with a very conservative view of the average financial loss per scam.

2] Based on those who are less trusting of at least one social media platform: Facebook, TikTok, Instagram, LinkedIn and WhatsApp.

3] Social media platforms include: Facebook, Instagram, TikTok and WhatsApp.

Research commissioned by Mastercard and conducted by Pureprofile between 28 August 2024 - 9 September 2024, with 853 New Zealand respondents aged 18+, and 209 New Zealand business decision-makers.

© Scoop Media