A new report from ID Verification Company Onfido shows that the availability of cheap generative AI tools has led to Deepfake fraud attempts increasing by 3,000 per cent (specifically, a factor of 31) in 2023.

Free And Cheap AI Tools

Although deepfakes have now been around for several years, as the report points out, deepfake fraud has become significantly easier and more accessible due to the widespread availability of free and cheap generative AI tools. In simple terms, these tools have democratised the ability to create hyper-realistic fake images and videos, which were once only possible for those with advanced technical skills and access to expensive software.

Prior to the public availability of AI tools, for example, creating a convincing fake video or image required a deep understanding of computer graphics and access to high-end, often costly, software (a barrier to entry for would-be deep-fakers).

Document and Biometric Fraud – The New Frontier

The Onfido data reveals a worrying trend in that while physical counterfeits are still prevalent, there’s a notable shift towards digital manipulation of documents and biometrics, facilitated by the availability and sophistication of AI tools. Fraudsters are not only altering documents digitally but also exploiting biometric verification systems through deepfakes and other AI-assisted methods. The Onfido report highlights a dramatic rise in the rate of biometric fraud, which doubled from 2022 to 2023.

Deepfakes – A Growing Threat

As reinforced by the findings of the report, deepfakes pose an emerging and significant threat, particularly in biometric verification. The accessibility of generative AI and face-swap apps has made the creation of deepfakes easier and highly scalable, which is evidenced by a 31X increase in deepfake attempts in 2023 compared to the previous year!

Minimum Effort (And Cost) For Maximum Return

As the Onfido report points out, simple ‘face swapping’ apps (i.e. apps which leverage advanced AI algorithms to seamlessly superimpose one person’s face onto another in photos or videos) offer ease of use and effectiveness in creating convincing fake identities. They are part of an influx of readily available online AI assisted tools that are providing fraudsters with a new avenue into biometric fraud. For example, the Onfido data shows that Biometric fraud attempts are clearly higher this year than in previous years with fraudsters favouring tools like the face-swapping apps to target selfie biometric checks and create fake identities.

The kind of fakes these cheap, easy apps create have been dubbed “cheapfakes” and this conforms with something that’s long been known about online fraudsters and cyber criminals – they seek methods that require minimum effort, minimum expense and minimum personal risk, yet deliver maximum effect.

Sector-Specific Impact of Deepfakes

The Identity Fraud Report shows that (perhaps obviously) the gambling and financial sectors in particular are facing the brunt of these sophisticated fraud attempts. The lure of cash rewards and high-value transactions in these sectors makes them attractive targets for deepfake-driven frauds. In the gambling industry, for example, fraudsters may be particularly attracted to the sign-up and referral bonuses. In the financial industry, where frauds tend to be based around money laundering and loan theft, Onfido reports that digital attacks are easy to scale, especially when incorporating AI tools.

Implications For UK Businesses In The Age of (AI) Deepfake-Driven Fraud

The surge in deepfake-driven fraud highlighted by the somewhat startling statistics in Onfido’s 2024 Identity Fraud Report, suggest that UK businesses navigating this new landscape may require a multifaceted approach. This could be achieved by balancing the implementation of cutting-edge technologies with heightened awareness and strategic planning. In more detail, this could involve:

– UK businesses prioritising the reinforcement of their identity verification processes. The traditional methods may no longer suffice against the sophistication of deepfakes. Therefore, Adopting AI-powered solutions that are specifically designed to detect and counter deepfake attempts could be the way forward. This could work as long as such systems can keep up with the advancements in fraudulent techniques (more advanced techniques may emerge as more AI sophisticated AI tools emerge).

– The training of staff, i.e. educating them about the nature of deepfakes and how they can be used to perpetrate fraud. This could empower employees to better recognise potential threats and respond appropriately, particularly in sectors like customer service and security, where human judgment plays a key role.

– Maintaining customer trust. UK businesses must navigate the fine line between implementing robust security measures and ensuring a frictionless customer experience. Transparent communication about the security measures in place and how they protect customer data can help in maintaining and even enhancing customer trust.

– As the use of deepfakes in fraud rises, regulatory bodies may introduce new compliance requirements and UK businesses will need to ensure that they stay abreast of these changes both to protect customers and remain compliant with legal standards. This in turn could require more rigorous data protection protocols or mandatory reporting of deepfake-related breaches.

– Collaboration with industry peers and participation in broader discussions about combating deepfake fraud may also be a way to gain valuable insights. Sharing knowledge and strategies, for example, could help in developing industry-wide best practices. Also, partnerships with technology providers specialising in AI and fraud detection could offer access to the latest tools and expertise.

– Since deepfake fraud may be an ongoing threat, long-term strategic planning may be essential. This perspective could be integrated into long-term business strategies, thereby (hopefully) making sure that resources are available and allocated not just for immediate solutions but also for future-proofing against evolving digital threats.

What Else Can Businesses Do To Combat Threats Like AI-Generated Deepfakes?

Other ways that businesses can contribute to the necessary comprehensive approach to tackling the AI-generated deepfake threat may also include:

– Implementing biometric verification technologies that require live interactions (so-called ‘liveness solutions’), such as head movements, which are difficult for deepfakes to replicate.

– The use of SDKs (platform-specific building tools for developers) over APIs. For example, SDKs provide better protection against fraudulent submissions as they incorporate live capture and device integrity checks.

The Dual Nature Of Generative AI

Although, as you’d expect an ‘Identity Fraud Report’ to do, the Onfido report focuses solely on the threats posed by AI, it’s important to remember that AI tools can be used by all businesses to add value, save time, improve productivity, get more creative, and to defend against the AI threats. AI-driven verification tools, for example, are becoming more adept at detecting and preventing fraud, underscoring the technology’s dual nature as both a tool for fraudsters and a shield for businesses.

What Does This Mean For Your Business?

Tempering the reading of the startling stats in the report with the knowledge that Onfido is selling its own deepfake (liveness) detection solution and SDKs, it still paints a rather worrying picture for businesses. That said, The Onfido 2024 Identity Fraud Report’s findings, highlighting a 3000 per cent increase in deepfake fraud attempts due to readily available generative AI tools, signal a pivotal shift in the landscape of online fraud. This shift could pose new challenges for UK businesses but also open avenues for innovative solutions.

For businesses, the immediate response may involve upgrading identity verification processes with AI-powered solutions tailored to detect and counter deepfakes. However, it’s not just about deploying advanced technology. It’s also about ensuring these systems evolve with the fraudsters’ tactics. Equally crucial is the role of employee training in recognising and responding to these sophisticated fraud attempts.

As regulatory landscapes adjust to these emerging threats, staying informed and compliant is also likely to become essential. The goal is not only to counter current threats but to build resilience and innovation for future challenges.

With Microsoft’s Copilot AI assistant now embedded within the Microsoft 365 apps and services to help users save time and increase productivity, we look at a dozen things you can do with Copilot to help your business.

Microsoft 365 Copilot

Copilot fuses ChatGPT version 4 and Microsoft Graph. More specifically, Copilot is designed to integrate the capabilities of ChatGPT version 4 (a sophisticated language model developed by OpenAI), with the extensive data and connectivity provided by Microsoft Graph.

Microsoft Graph is an API platform that enables developers to access and integrate data and insights from various Microsoft services and applications, such as Office 365, Windows 10, and Enterprise Mobility + Security, facilitating the creation of rich, interconnected applications within the Microsoft ecosystem.

This integration allows Copilot to leverage the conversational AI capabilities of ChatGPT in conjunction with the rich data ecosystem of Microsoft 365, enhancing productivity and offering more advanced features within Microsoft’s suite of applications.

Microsoft says Copilot can increase an employee’s productivity by as much as 50 per cent and that it can unlock the other 90 per cent of things that its apps can do that most users never try.

A Dozen Ways Copilot Can Help

With this in mind, here are a dozen ways that you can use Copilot to help with your business:

1. Automating Customer Service Responses

Copilot can manage routine customer service queries by providing instant, accurate responses to FAQs. This helps by reducing wait times and improving customer satisfaction. It can also act as a way to identify and escalate the more complex issues to human representatives, ensuring a balance between efficiency and having a personal touch.

2. Generating Reports and Summaries

Microsoft 365 Copilot can also analyse large sets of data to generate detailed reports and executive summaries. This can be really helpful in identifying key metrics and trends, which are essential for strategic planning and decision-making, without the need for manual data crunching. This is an important way that Copilot can save time and effort and add more transparency to a business.

3. Drafting and Editing All Manner Of Business Documents

Copilot assists in creating professional business documents, emails, and presentations. It offers suggestions on content, structure, and style, ensuring that the documents are not only well-written but also tailored to their intended audience. Again, this can save time and improve productivity but also improve the quality of business communications.

4. Data Analysis and Insights

By analysing complex datasets, Copilot can uncover valuable insights, helping businesses understand customer behaviour, market trends, and operational efficiency. This leads to more informed decision-making and strategy development.

5. Scheduling and Calendar Management

It streamlines calendar management by scheduling meetings, appointments, and events based on your availability. It can also send automated reminders and updates, ensuring efficient time management and reducing scheduling conflicts.

6. Training and Educational Resources

Copilot can create custom training materials and educational content that are specifically tailored to a company’s processes and systems. This can help in onboarding new employees more efficiently and keeping the workforce updated on new tools and practices. This can, of course, also save money on training and potentially improve the efficiency of training (because it can be more targeted and customised).

7. Automating Routine Tasks

For tasks like data entry, inventory management, and basic accounting, Copilot can automate these processes, thereby reducing the risk of human error and allowing employees to focus on more strategic and creative tasks.

8. Language Translation and Localisation

Microsoft Copilot can also be used to facilitate global business operations by translating documents and communications into various languages, ensuring that businesses can effectively communicate with international clients and partners.

9. Market Research and Analysis

Copilot can scour the internet and various databases to conduct market research, analyse industry trends, and provide actionable insights, helping businesses stay ahead in their market.

10. Social Media Management

Copilot can also help with creating, scheduling, and analysing social media posts. Copilot can also track engagement metrics, thereby helping businesses understand their audience better and refine their social media strategies.

11. Project Management Assistance

Microsoft 365 Copilot can also help with tracking project milestones, resource allocation, and progress updates. This can ensure that projects stay on track, resources are efficiently used, and stakeholders are kept informed.

12. Legal and Compliance Documentation

One other really helpful aspect of Copilot is that it can assist in drafting legal documents and ensure that business operations comply with relevant laws and regulations. This is crucial for mitigating legal risks and maintaining a company’s reputation.

What Does This Mean For Your Business?

The integration of Microsoft’s Copilot AI into the Microsoft 365 suite is a significant advancement for 365 and for business technology generally. With Copilot embedded in popular 365 apps, businesses now have a powerful ‘always on’ tool at their disposal to help with productivity, efficiency, creativity, adding value, and more. As such, this integration goes beyond mere convenience, and it taps into the unrealised potential of Microsoft 365, unlocking functionalities that many users have yet to explore, i.e. it can help businesses to leverage (and get more out of) what they’re already paying for from Microsoft.

By being able to quickly and easily automate tasks, e.g. from customer service to complex data analysis, Copilot not only saves time but also enhances creativity and leaves employees free to focus on more strategic and innovative tasks, thereby elevating the quality of work and driving business growth. Also, Copilot’s intuitive, natural language capabilities, akin to those of ChatGPT version 4, make it a user-friendly assistant that can simplify complex tasks and make technology more accessible to everyone in the organisation.

Copilot, therefore, serves as a tool for upskilling employees. It exposes them to a broader range of Microsoft 365 capabilities, fostering a deeper understanding and more efficient use of the software. This aspect of Copilot is particularly valuable as it achieves upskilling organically, without the need for additional training resources. It could be said that Copilot is not just enhancing productivity, but it’s also expanding the technological proficiency of the entire workforce.

For businesses, in addition to streamlining operations, Copilot can also help deliver a competitive edge e.g., the insights gleaned from Copilot’s data analysis and market research capabilities can inform strategic decisions, offering a clearer view of market trends and customer behaviours. Its ability to handle language translations and ensure compliance with legal standards positions businesses for global reach and operational safety may also be of real use for many businesses.

Microsoft 365 Copilot, therefore, is more than an incremental update to business software, but could prove to a transformative tool that can significantly enhance how businesses operate (if businesses make sure they use it). The rewards for using what is a comprehensive, and relatively easy-to-use solution that unlocks the power of the 365 apps could be to propel your businesses into a new era of efficiency and innovation.

The UK Information Commissioner has warned some of the UK’s top websites that if they don’t offer users fair choices over cookie use, as required by data protection law, they will face enforcement action.

Guidance Not Being Followed 

The Information Commissioner argues that although it has previously issued clear guidance that organisations must make it as easy for users to “Reject All” advertising cookies as it is to “Accept All,” this guidance is still not being followed in many cases.

The Issue 

The issue is that people are concerned about companies using their personal information to target them with ads without their consent. However, some cookies used by websites track users so that they can serve personalised advertising to the user based on their browsing. Therefore, the ICO says that websites must clearly give users the opportunity to reject (or accept / consent to) these types of cookies in order to be compliant with data protection laws.

Stephen Almond, ICO Executive Director of Regulatory Risk, has given examples on the ICO website, of ways that website users can be negatively affected if the top websites they visit aren’t compliant in this way. Mr Almond says: “Gambling addicts may be targeted with betting offers based on their browsing record, women may be targeted with distressing baby adverts shortly after miscarriage and someone exploring their sexuality may be presented with ads that disclose their sexual orientation.”  

Only 30 Days To Comply

The ICO says that it has therefore written to companies running many of the UK’s most visited websites setting out its concerns and giving them 30 days to ensure their websites comply with the law.

Previous Warning 

This latest announcement follows a warning and a paper outlining guidance issued back in August. At the time, the ICO warned designers and developers to stop using harmful design practices that could: “Undermine people’s control over their personal information and lead to worse consumer and competition outcomes.”  

Legislation Changes Concerning 

The current regulations relating to cookie usage are split between General Data Protection Regulation (GDPR) and the Privacy and Electronic Communications Regulations (PECR). The PECR (known as the “cookie law”) led to the introduction of cookie consent pop-ups on websites.

Concerns Over New Bill 

However, a new data protection and digital information bill is on the way which has concerned privacy groups because:

– It will mean fewer cookie consent pop-ups.

– It will allow some websites to collect information (to improve service and security) without consent.

– It will give ministers the power to add new exceptions to cookie consent requirements.

What Does This Mean For Your Business? 

As the ICO’s Stephen Almond says, “many of the biggest websites have got this right” yet it appears that the Information Commissioner has now run out of patience with companies that haven’t yet decided (for whatever reason) to get to grips with and comply with data privacy regulations.

The ICO’s warning to the UK’s top websites about cookie consent has significant implications for businesses, especially those with high online traffic. This move signals an increased urgency for these websites to comply with data protection laws – 30 days isn’t a long time for big companies to comply, although some would argue they’ve had years already to do so. Emphasising the need for fair-use, transparancy and user-friendly cookie consent mechanisms is, therefore, the drive behind the Information Commissioner’s latest ultimatum with the focus on high-traffic sites. This seems to indicate that businesses with larger user bases now face greater scrutiny, and compliance may now be not only a legal necessity but also crucial for maintaining user trust and brand reputation.

The ICO’s announcement serves as a stark reminder for all businesses about the importance of adhering to data protection regulations. This includes staying informed about impending legislative changes that could affect cookie consent and data collection practices (remember, the new bill will see ministers able to make changes to cookie exceptions). For web designers and developers, this latest announcement underscores the need to prioritise user privacy in their designs, moving away from methods that subtly coerce users into accepting cookies.

With public concern over the use of personal data in advertising, this story is a reminder that businesses must be transparent in their cookie usage and provide clear consent options and that this approach is vital in enhancing the trustworthiness of the site. Overall, the ICO’s warning highlights the necessity for a comprehensive and proactive approach to data privacy and protection, urging businesses to not only comply with current laws but also prepare for future changes in legislation and public expectations.

The announcement of measures intended to boost investment in innovation and technology in UK Chancellor Jeremy Hunt’s Autumn Statement could mean increased spending on IT and AI.

Measures To Boost The Tech Sector

The UK Chancellor’s Autumn Statement introduced a range of measures aimed at boosting the tech sector, with potentially significant implications for tech spending and investment in innovation. Some tech commentators have suggested that this could mean that private-sector IT buyers will see a long-term boost. Here we take a look at how the measures announced could affect tech spending, their potential overall impact, and any negative effects they might have.

Positive Impacts on Tech Spending

Some of the key announcements in the Autumn Statement that could have a positive effect on tech spending include :

– A permanent full expensing policy. Mr Hunt’s decision to make the full expensing policy permanent allows private sector IT buyers to write off the cost of IT equipment against tax. This policy, therefore, looks likely to encourage more investment in IT infrastructure, as companies can deduct these expenses from taxable profits.

– Enhanced R&D tax credits. The merger of the R&D Expenditure Credit and SME schemes from April 2024 will make more companies eligible for claims supporting innovation. It’s thought that around 5,000 additional small businesses may benefit, thereby helping to foster a more innovative environment in the UK tech sector.

– Investment in AI and quantum technologies. The government’s commitment of £500 million over two years to establish additional ‘compute innovation centres’ and the funding being part of a larger £1.5 billion investment is intended to enhance the UK’s capabilities in AI. The Statement also outlined five quantum missions as part of the ‘National Quantum Strategy.’ These missions focus on establishing advanced quantum computing capabilities and networks and incorporating quantum technologies in various sectors such as healthcare, transportation, and defence by 2030 and 2035. One key benefit of quantum computing being made available to healthcare could of course be breakthroughs in areas like drug discovery. Thinking back to the pandemic, many peopel may remember how quantum computing was something that was being used to help speed the way to developing effective vaccines.

– Skills development Initiatives. It’s long been known that the UK has a tech skills gap which is something that threatens to hamper its ambition to become an international technology superpower. Therefore, a £50 million investment to pilot ways to increase apprenticeships in key growth sectors (including engineering) aligns with the need for a skilled workforce to sustain tech advancements. Mr Hunt also announced three more investment zones (on top of the 12 announced in March) in order to boost advanced manufacturing in the West Midlands, East Midlands, and Greater Manchester.

– Support for clean energy and infrastructure. The outlined efforts to cut grid access delays and provide financial incentives for clean energy businesses will likely accelerate the UK’s transition to a low-carbon economy, benefiting green tech initiatives. For example, a £960m Green Industries Growth Accelerator fund may help to support emerging technologies in clean energy and the transition to net-zero.

Not All Positive

Some of the Autumn Statement announcements, however, may not be such good news for the UK’s tech sector. For example, some of the potential challenges and negative effects include:

– Negative economic forecasts and tight public spending: Despite some of the ambitious measures announced, their success is essentially contingent on economic forecasts, which are currently revised downwards. A significant squeeze on public spending due to inflation may also hamper the plans for digital transformation, especially if budget constraints affect public sector investments.

– Implementation and collaboration needs. The effectiveness of the many potentially positive measures announced depends on the government’s ability to implement them quickly and efficiently. Also, government collaboration with the tech sector is crucial to ensure these policies translate into tangible growth and innovation. For example, the government will need to work alongside tech companies, startups, and industry experts to understand their needs, address potential challenges, and ensure that the policies are actually practical and beneficial.

– A reliance on estimates and uncertainties. Some reforms, like those to the energy grid and pension and capital market reforms, are unfortunately based on estimates that may not actually materialise as expected. If these projections fall short, it could limit the overall impact of the statement’s measures on tech investment and growth.

What Does This Mean For Your Business?

The Autumn Statement’s initiatives offer a promising landscape for businesses beyond just IT buyers, possibly signalling a transformative shift in the UK’s approach to technological advancement and innovation. The decision to make full expensing permanent, coupled with enhanced R&D tax credits, may help present a financially viable path for businesses across various sectors to invest more boldly in new technology and innovation projects. This change not only eases the financial burden of such investments but may also go some way to encouraging a culture of continuous innovation.

The substantial investments in AI, quantum computing, and compute infrastructure could open up new avenues for businesses to access and leverage advanced technologies. These technologies, for example, have the potential to revolutionise product development and operational efficiency across a wide range of industries. As a result, organisations can look forward to not only improved business-processes but also the possibility of developing groundbreaking new products and services.

The focus on developing much-needed tech skills in the UK workforce through apprenticeships and training initiatives is another critical aspect. This approach could help give UK businesses access to employees equipped with the necessary skills to navigate and contribute to an increasingly complex technological landscape. This is particularly crucial at a time when technology is evolving rapidly, and the demand for skilled professionals is at an all-time high.

Businesses with a focus on green technologies or those looking to transition to more sustainable practices may get support through initiatives aimed at reducing grid access delays and promoting clean energy. This not only aligns with global trends toward sustainability but also offers a competitive edge to businesses that prioritise environmental responsibility.

However, businesses in what are challenging economic times are likely to see the announcements in the broader economic context. The success of these measures is not guaranteed and is contingent upon effective implementation amidst economic uncertainties and potential public spending constraints. Therefore, businesses need to stay informed and agile, ready to adapt to changing regulations and economic conditions.

Looking on the bright side, this year’s Autumn Statement generally appears to present a multifaceted opportunity for businesses to grow, innovate, and adapt in a rapidly evolving technological environment. If UK businesses can capitalise on the initiatives announced and navigate the associated challenges, they may be better positioned to make the most of new technologies like AI.

OpenAI’s president and co-founder, Greg Brockman, has announced that ‘ChatGPT Voice’ in its ChatGPT app, previously only available to Plus and Enterprise subscribers, is now available free to all iOS and Android users.

ChatGPT Voice (originally introduced in September) integrates voice capabilities with the existing ChatGPT text-based model. This allows users to have a conversation with it and ask the ChatGPT chatbot questions and be given answers, all by voice, i.e. talking to the app on your device. Greg Brockman said on X that the feature “totally changes the ChatGPT experience.”

iOS users who want to try ChatGPT Voice can access it in their ChatGPT app now. An example video of what ChatGPT Voice can do has been posted by Greg Brockman on X here.

Police and the US Charity National Center for Missing and Exploited Children have warned of a nude photo Snapchat scam targeting teen boys that could cause emotional trauma.

The Snapchat ‘online sextortion’ scam involves scammers befriending teenage boys online by posing as teenage girls, sharing nude photos of a girl with them, and asking for nude photos in return. Those teen boys who reciprocate are then sent a demand for money with the threat of sharing the boy’s photos with his social media followers if he doesn’t pay (via a peer-to-peer payment app). However, even if the scammers are paid, they don’t go away.

The advice to young victims of a sextortion scheme is first tell their parents, to block bad actors, and to report any instances of this crime to police and Action Fraud.

In September, Snapchat announced new safety features in its app to enhance protections and safeguards for teenage users, which include educational resources highlighting risks, and in-app warnings when a teenager receives a friend request from someone with whom they have no mutual contacts.