Half of businesses lack strong confidence in deepfake detection

Activists wearing eye masks, hold posters reading ‘Repeated deepfake sex crimes, the state is an accomplice too’ during a protest against deepfake porn in Seoul on August 30, 2024 – Copyright AFP Anthony WALLACE

Almost every second business lacks confidence in deepfake detection, according to a new industry assessment. This particularly relates to uncertainty with detection, leaving firms vulnerable to rising fraud risks.

The study also uncovers significant gaps in preparedness, particularly in the Financial Services sector, where the threat is growing.

The study comes from Regula, a global developer of identity verification solutions. The key message is a gap in preparedness: nearly half of businesses admit they are only partially confident in their ability to detect deepfakes, leaving them vulnerable to escalating fraud risks.

Based on Regula’s study, “The Deepfake Trends 2024,” 59 percent of businesses consider video deepfakes a serious threat, while 58 percent feel the same about audio deepfakes.

Certain industries and regions feel the impact more acutely: In the Financial Services sector, 66 percent of respondents rank audio deepfakes as a moderate to significant risk. Traditional banks are among the least confident, with only 49 percent feeling prepared. In contrast, FinTech companies report the highest confidence levels at 63 percent.

In terms of national trends, Mexico leads globally in deepfake threat perception, with 83 percent concerned about video deepfakes and 85 percent about audio deepfakes. By contrast, only 50 percent of U.S. organizations express concern about video deepfakes; meanwhile, Germany ranks slightly higher, with 57 percent of organizations worried.

Germany leads in uncertainty, with only 47 percent of businesses expressing strong confidence in their defenses, while the UAE (63 percent) and the U.S. (60 percent) show the highest levels of confidence.

Notably, businesses that have previously experienced identity fraud are twice as likely to view deepfake threats as a major concern.

Despite widespread awareness, on average, 42 percent of businesses admit they are only “somewhat confident” in their ability to detect deepfakes.

To address the issue, the study reveals that businesses adopting online identity verification (IDV) early are significantly more prepared. Those with seven years of IDV experience report 20 percent higher confidence than recent adopters.

However, tackling deepfakes in-house can backfire. Companies building their own IDV systems reported higher average losses—$515,000 compared to $444,000 for those using ready-made solutions—underscoring the complexity of fighting fraud effectively.

The report also uncovers a disconnect between owners and managers where 76 percent of business owners are confident in their ability to manage deepfake threats. Yet only 47 percent of managers feel the same, reflecting the day-to-day challenges of mitigating fraud.