The New Age of Cyber Scams: How AI Deepfakes Are Becoming a Business Nightmare

The rapid rise of artificial intelligence (AI) has transformed industries and propelled businesses into a new era of efficiency and innovation. But this same technology, particularly through hyper-realistic deepfakes, is becoming a serious weapon for cybercriminals, posing a growing threat to companies of all sizes. A surge in AI-driven scams, including impersonation, identity theft, and misinformation, is forcing businesses worldwide to rethink their digital security strategies and fraud prevention efforts.

A recent survey conducted by the Insurance Bureau of Canada (IBC) reveals that 65% of small and medium-sized business owners are deeply concerned about the new AI-powered risks. These include deepfakes—sophisticated video and audio simulations that impersonate CEOs or business leaders to trick employees or clients into handing over sensitive information. With tools like ChatGPT and other generative AI platforms, fraudsters are creating seamless scams that blend real and synthetic information, making it harder than ever to spot the deception. Such attacks often lead to significant financial losses and even reputational damage, with high-level impersonation scams now costing businesses millions.

The risks associated with deepfakes have continued to evolve rapidly, with 49% of businesses reporting encounters with AI-powered scams in 2024, according to research by Regula. The survey shows that 66% of business leaders consider deepfakes a critical threat to their companies, with many warning that traditional verification methods are increasingly insufficient. In some regions, like Mexico, where 70% of firms reported being targeted by fake or altered IDs, the dangers are even more pronounced, showcasing how AI can exploit regional vulnerabilities in security practices.

While the sophistication of AI-driven scams grows, preparation among business owners appears to be in decline. Data from IBC’s study shows that only 61% of small to medium-sized businesses took active steps to mitigate cyber risks in 2024, down from 69% in 2023. Furthermore, only 45% have implemented defenses against cyber attacks, and just 18% hold cyber insurance. Many organizations seem to be wrestling with the challenge of balancing awareness of AI-driven fraud risks with actual investment in security measures, leaving a substantial gap that cybercriminals are quick to exploit.

Deepfake attacks will cost $40 billion by 2027 | VentureBeat

Economic uncertainty and remote work environments have also exacerbated these risks. According to KPMG, 95% of leaders who were victims of fraud expressed concern that generative AI enables new avenues for fraudsters to manipulate, deceive, and mislead. The ease with which AI tools can create social engineering scams and synthetic identities has placed additional pressure on businesses to develop more resilient anti-fraud strategies. KPMG’s national forensic leader, Enzo Carlucci, notes that during times of financial hardship, employees themselves may resort to fraudulent activities out of desperation, adding a new layer of complexity to the cyber risk landscape.

Experts agree that for businesses to protect themselves against these evolving threats, proactive steps are essential. KPMG and IBC urge organizations to stay ahead of cybercriminals by investing in cybersecurity infrastructure, updating fraud detection methods, and fostering awareness about AI-related threats among employees. Resources like IBC’s Cyber Savvy public education campaign and the SME self-assessment tool for cyber insurance offer business owners guidance on understanding cyber risks and implementing practical safeguards.

As deepfake and AI-related fraud continue to rise, businesses must adopt robust, multi-layered approaches to cybersecurity. This includes technical safeguards, employee education, and new verification protocols to protect their operations, customer trust, and reputation in an increasingly AI-dominated world. Building cyber resilience is no longer an option—it’s a necessity.