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.
