Deepfake scams target 29% of New Zealanders, costing millions

Research commissioned by Mastercard reveals that 29% of individuals and 18% of businesses in New Zealand have been targeted by deepfake scams over the past year.

Deepfake scams leverage generative AI to impersonate individuals, potentially deceiving victims into surrendering money or personal information. As AI technology becomes more accessible, the threat to both New Zealand citizens and businesses is expected to rise.

The research indicates that an estimated tens of millions of dollars have been lost by these scams within New Zealand in the past 12 months. Mallika Sathi, Vice President, Security Solutions, Australasia, Mastercard, stated, "However, given many victims of these scams are not aware that they have been targeted, this is potentially only the tip of the iceberg."

The study shows 10% of those targeted fell victim to the scam, resulting in financial losses, while 27% were subjected to non-financial losses such as identity theft or compromised personal data. Notwithstanding these threats, 25% of New Zealanders have not taken preventative measures.

"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.

Concerns about vulnerability were particularly pronounced for grandparents, with 26% of those surveyed thinking they were the most susceptible family members to deepfake scams, followed by mothers at 18%. However, only 21% of New Zealanders have engaged in educating themselves or their families about these threats.

Confidence levels in identifying deepfakes remain low; just 12% of respondents felt assured in their ability to detect them, while 34% lacked confidence.

Such imposture also affects public trust, with 41% of individuals being more sceptical towards celebrities and influencers compared to the previous year.

The survey demonstrated a growing distrust in digital platforms, with 61% of New Zealanders less trusting of social media platforms, 40% less trusting of emails, and 37% less trusting of phone calls. Among the reported scams, emails ranked as the most utilised medium for deepfake scams at 13%.

Unlike consumers, New Zealand businesses have not been exempt from these scams, with 18% reporting incidents.

Nearly half of these businesses, 47%, have been deceived by the fabricated content. Common scam impersonations include customer service representatives, clients, and suppliers.

Preventative strategies are being employed by some businesses: 43% use identification verification for sensitive data access, 38% provide cybersecurity training, and 29% conduct financial transaction training. Nevertheless, 26% of businesses have not implemented any safeguards.

Sathi recommended caution: "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."

To combat these scams, Mastercard has partnered with Stacey Edmonds, a generative AI and deepfake educator, launching a six-part educational series available on its YouTube channel.

This initiative is designed to empower both consumers and businesses with strategies to identify and protect against deepfake impostures.