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Imagine a world where every shopping store you walk into has a virtual try-on store and robust cybersecurity ensures these experiences are secure and trustworthy. This synergy between innovative tech and security is not just a vision but a burgeoning reality in the retail sector. One of the most promising and positive uses of deepfakes and AI is the possibility of enhancing personalization in the shopping experience. Retailers use AI-generated images or videos to model clothing, accessories, or makeup on a virtual version of the shopper, offering a tailored experience that better reflects individual preferences and body types. Not only does this significantly improve customer satisfaction (reportedly 20-30%) and increase the likelihood of making a purchase (boost in conversion rates by 15-25%), but it also helps the retailer become more inclusive of its customers.

Alternatively, the widespread use of AI and the profound shift in customers’ interaction with technology is leading to an elevated sophistication of cybercrimes and attacks. Cybercrime is becoming more personalized and is on the verge of becoming an even more professional and profitable business. Let us talk about this double-edged sword.

The Positive Edge: Opportunities of Deepfakes in Retail

Image: Deepfakes have been used to break down linguistic barriers, including by English soccer great David Beckham in his Malaria No More campaign, where deepfakes enabled him to deliver his message in nine different languages.

Retailers today harness deepfake technology to create realistic, immersive product visualizations. By generating lifelike images and videos of products in various settings or being used by people, deepfakes help customers better understand a product's features and accessibility in stores.

Another exciting potential is that deep fakes can be employed to adapt campaigns for different regions or cultures, making them more relatable and engaging for diverse audiences. By altering the appearance, language, or cultural references within an advertisement, deep fakes help brands connect with consumers across the globe. Again, this means that brands might not have to lean on agencies to create advertisements and campaigns for their products.

The Negative Edge: Threats Posed by Deepfakes

Now, imagine a world where a seemingly authentic video of a CEO launching a new product or announcing a policy change is easily fabricated. Among the myriads of emerging threats, deepfake extortion stands out as a particularly insidious challenge. Deepfakes, which leverage artificial intelligence to create hyper-realistic yet fake videos, images, and audio, pose significant risks not just to the retail sector but to every industry possible. Deepfakes are now the second most common cybersecurity incident encountered by businesses in the past year, trailing only behind malware infections, according to research by ISMS.online.

Deepfake technology has advanced rapidly since its inception. Deepfake technology refers to an AI-based method for creating synthetic media. This involves overlaying human features onto another person’s body or altering sounds to produce a lifelike human experience. For instance, actor Val Kilmer, who lost his unique voice to throat cancer in 2015, was able to ‘speak’ again thanks to Sonantic’s deepfake technology. Initially a novelty, it has become a powerful tool for malicious actors. In the retail industry, deepfakes are used to impersonate executives, manipulate customer interactions, and create fraudulent content. The potential for damage is immense, ranging from financial losses to severe reputational harm.

  • Fraud and Financial Losses: Deepfakes are used to create convincing fake identities, leading to fraudulent transactions and financial scams. Retailers usually find themselves victims of sophisticated fraud schemes where deepfake videos or audio are used to authorize transactions or manipulate financial systems. For example, a Hong Kong Bank suffered a $25 million loss due to a sophisticated deepfake fraud. The scammers digitally recreated the company’s chief technology officer, along with other employees, on a conference call instructing colleagues to transfer money.  
  • Reputation Damage: The spread of deepfake content severely damages a retailer’s reputation. Fake videos or images of executives or products can go viral, leading to public relations crises and loss of customer trust.
  • Operational Disruption: Deepfakes disrupt operations by creating confusion and mistrust within the organization. For example, deepfake audio messages are being used to issue false instructions to employees, leading to operational chaos.

Beyond the mirage: Essential strategies for visionary leaders

Navigating the challenges posed by deepfakes requires a multifaceted approach, starting with “Acting now, rather than waiting for a big crisis to happen.”

  • Enhanced Verification Processes: Implementing multi-factor authentication and robust verification processes can help mitigate the risk of deepfake-induced fraud. This includes verifying the identity of individuals through multiple channels before authorizing transactions or sensitive actions.
  • Employee Training and Awareness: Educating employees about the risks of deepfakes and how to recognize them is crucial. Regular training sessions can help staff stay vigilant and report suspicious activities promptly.
  • Advanced Detection Technologies: Investing in AI-driven detection tools that can identify deepfakes is essential. These tools analyze inconsistencies in videos, images, and audio to flag potential deepfake content.
  • Crisis Management Plans: Developing and regularly updating crisis management plans to address potential deepfake incidents can help retailers respond swiftly and effectively. This includes having a clear communication strategy to manage public relations and customer trust1.
  • Collaboration with Cybersecurity Experts: Partnering with firms that specialize in deepfake detection and prevention such as Cognizant can provide retailers with the expertise and tools needed to combat this threat.

 

Cognizant’s Offerings

Cognizant's Neuro AI, a suite of platforms, is designed to amplify cybersecurity resilience by integrating and orchestrating point cybersecurity solutions across the enterprise. The key capabilities of Cognizant Neuro Cybersecurity include:

  • Aggregation of point solution results: Aims to provide compounded cybersecurity query outputs, reducing interpretation complexity and enabling faster risk mitigation actions.
  • Unified security management: Integrates multiple security system outputs into a single platform, expected to harmonize and integrate data from various sources to provide a holistic view of security threats, vulnerabilities, and risk information.
  • Enhanced threat detection and response: Advanced threat intelligence, vulnerability management, and incident response features with the goal of ensuring IT teams can detect and mitigate threats more effectively.
  • Intuitive interface: A unified, user-friendly interface that aims to adapt to the needs of different users, allowing for easy interaction with the platform and quick access to relevant information.
  • Scalability and flexibility: Designed to seamlessly grow and adapt alongside your organization, accommodating increasing data volumes, evolving security needs, and changing compliance requirements without disruption.

AI has changed everything since last year. The real battle remains: Who will harness the power of innovative technologies and the psychology of human behavior more effectively – us or the cybercriminals?

As deepfake technology continues to evolve, the retail industry must stay ahead of the curve by adopting proactive cybersecurity measures. By enhancing verification processes, investing in detection technologies, and fostering a culture of awareness, retailers can protect themselves while potentially balancing the pros and impacts of deepfakes. Navigating this new frontier requires vigilance, innovation, and a commitment to cybersecurity excellence. At Cognizant, we not only personally cater to each business' needs, but also prioritize customer experience. Contact us to learn more.

 


Nishtha Sharma

Consultant - Retail, Consumer Goods, Travel & Hospitality

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Stefano Montanari

Head of Retail and Consumer Goods Consulting

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