Finance director transfers huge amount after joining video conference call with deepfake impersonators
A multinational firm in Singapore almost lost nearly US$500,000 after a deepfake video conference scam preyed on the company's finance director.
The Singapore Police Force said its Anti-Scam Centre (ASC) worked with the Hong Kong Police Force's Anti-Deception Coordination Centre (ADCC) to trace and withhold over US$499,000 (around SG$670,000) that was sent to a money mule account of the scammers.
The money was sent after a finance director was duped into sending the amount through a sophisticated impersonation scam that used digital manipulation.
According to the Singapore Police, the finance director was contacted via WhatsApp on March 24 by the scammers, who were impersonating as the company's chief financial officer.
The victim was told to participate in a video conference regarding a supposed restructuring of the firm's regional business on March 26.
The call took place on March 25, a day earlier than planned, where the finance director joined a Zoom video conference with the scammers, who were impersonating officials in the firm, including its chief executive officer, using deepfake technology.
The scam also involved a separate call from a purported lawyer who told the director about the importance of the project, and then asked him to sign a non-disclosure agreement.
In the March 25 call, the finance director was asked to transfer over US$499,000 from the company's HSBC bank account to a money mule account in Singapore under the control of the scammers.
From that local account, over US$494,000 was transferred to bank accounts in Hong Kong, according to the police.
The finance director only realised it was a scam after he was asked again to transfer an additional US$1.4 million. He quickly alerted HSBC, which notified Singapore's ASC.
The ASC said it was able to seize the full amount that was transferred to Hong Kong banks by March 28, with the help of the ADCC. It was also able to seize the remaining amount worth more than US$5,000 in the local mule account.
The case highlights the growing threat of impersonation scams across the world following the rise of AI deepfake technology.
Last year, a multinational firm in Hong Kong lost HK$200 million after an employee was duped into transferring the amount after participating in a video conference where all other participants turned out to be AI-generated deepfake personas.
In the US, data from Trustmi last year found that 22% of organisations have fallen victim to AI-driven attacks, such as AI-driven deepfake (9.6%) and executive impersonation (12.3%).
To avoid becoming victims of these scams, the Singapore Police offered the following precautionary measures for businesses:
Establish protocols for employees to verify the authenticity of any video calls or messages, particularly those purportedly from senior executives or key stakeholders.
Train employees to be vigilant about unsolicited video calls or messages, even if they appear to come from known business contacts.
Be mindful of any sudden or urgent fund transfer instructions and verify the authenticity of the instructions with the relevant departments or personnel.
Never disclose confidential or personal information or send money to any unknown persons.
Organisations who suspect that they have been duped should call the associated bank immediately to report the transaction and then make a police report.
