Federal Reserve Governor Michael Barr is urging banks to start gathering behavioral and biometric information from clients to fight deepfake digital content material created by ID. These deepfakes are able to replicating an individual’s identification, which “has the potential to supercharge identity fraud,” Barr warned.
“In the past, a skilled forger could pass a bad check by replicating a person’s signature. Now, advances in AI can do much more damage by replicating a person’s entire identity,” Barr stated of deepfakes, which have the “potential to supercharge identity fraud.”
“[We] should take steps to lessen the impact of attacks by making successful breaches less likely, while making each attack more resource-intensive for the attacker,” Barr insists, believing that regulators ought to implement their very own AI instruments to “enhance our ability to monitor and detect patterns of fraudulent activity at regulated institutions in real time,” he stated. This might assist present early warnings to affected establishments and broader trade contributors, in addition to to guard our personal methods.”
Enabling multi-factor authentication and monitoring irregular funds is a primary step, however Barr and others consider that banks should start to gather their buyer’s biometric information. “To the extent deepfakes increase, bank identity verification processes should evolve in kind to include AI-powered advances such as facial recognition, voice analysis, and behavioral biometrics to detect potential deepfakes,” Barr famous.
Barr would love banks to start sharing information to fight fraud. Deepfake assaults have been on the rise, with one in 10 corporations reporting an assault in keeping with a 2024 Enterprise.com survey. But, will our information be safer within the arms of regulators?
Regulators have been unable to guard themselves, however they consider that they will defend us if we proceed to share our helpful information. All freedoms are relinquished within the identify of safety.
