The first case of CEO fraud using software to mimic the human voice has now occurred.

Excerpted from The Brussels Times Article

The technology is even available over the Internet for a few hundred dollars. Our experts have been witnessing the increasing sophistication of this type of fraudulent activity for years now.

Initially, it involved no more than an email whose authenticity nobody thought to verify. Later, the fraudsters gradually became more confident, increasing their technical expertise and ingenuity.

Some criminals no longer hesitate to pretend being company employees, such as members of an internal team responsible for combating fraud. Believing it to be an exercise, the employees contacted obey the instructions they are given and end up by making a very real fund transfer.

A few months ago, a German company in the energy sector was faced with a highly unusual case of fraud: it involved using the voice of its CEO as reproduced by artificial intelligence software based on automated, or “machine” learning to mislead the head of a UK subsidiary.

He began by making an initial transfer of $220,000. The fraud might well have continued if the fake CEO had not been unlucky enough to call his victim at the same time as the real CEO… In the end, the German company succeeded in getting its money back because it had taken out fraud insurance as a precaution.

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