Can AI-generated deepfakes compromise Know Your Customer (KYC) authentication?
In the world of finance, processes like KYC (Know Your Customer) and AML (Anti Money laundering) are vital safeguards, verifying customer identities and preventing fraud. A robust KYC framework is essential for combating financial crimes, ensuring compliance, and protecting business reputation. With the rise of AI-generated deepfakes or document replicas, organisations are re-evaluating their KYC procedures for enhanced security.
What are the challenges of deepfakes in KYC processes and how can businesses spot and address the threats?
Pierre-Antoine Boulat, FDM North America Delivery Lead for Risk, Regulation & Compliance and Patrick Wake, FDM Group Director of Information Security, discuss.
According to Pierre-Antoine Boulat, ‘An arm’s race between money launderers and financial compliance and law enforcement is all but certain. The tools that enable document counterfeiting, physical impersonation and convincing messages “en masse” are also deployed to counter such nefarious strategies and tactics: GenAI.’
According to Patrick Wake, ‘Deepfakes created through advanced AI techniques like generative adversarial networks (GANs), pose a significant challenge for identity verification processes. These AI-generated fakes can mimic various documents and personal details so convincingly that they threaten the reliability of traditional verification methods, raising concerns about security and fraud prevention.’
How deepfakes are made
Patrick explains that ‘deep fakes can be created with openly available tools like Deepfakes Web and Faceswapper.ai, as well as community-created and downloaded from platforms like GitHub. This raises concerns about their misuse in identity checks, especially in KYC procedures.
These models use neural networks to create realistic facial expressions, lip movements and voices, making the fake content look remarkably authentic. Techniques such as facial landmark detection and audio synthesis further enhance the believability of deepfakes.’
Mimicking documents and personal information
Deepfake technology has shown it can replicate various documents and personal attributes quite accurately. Examples include fake robocalls impersonating public figures like US President Joe Biden and complex financial scams where deepfakes impersonate company executives, causing significant financial losses. Deepfake creators use AI algorithms to manipulate text, signatures, and other document features, creating fake documents that are hard to spot. Advances in natural language processing help generate realistic text, adding to the authenticity of fabricated documents.
Improving Deepfake Detection
Patrick says, ‘efforts are underway to enhance detection technologies in response to the growing threat of deepfakes. One approach involves using advanced machine learning algorithms trained on large datasets of real and fake content. These algorithms analyse subtle differences in facial expressions, language patterns and context to identify signs of manipulation.
Researchers are also exploring biometric authentication methods like facial recognition and voice analysis to improve detection accuracy. Real-time detection systems are being developed to quickly analyse incoming media streams and flag suspicious content.’
Pierre-Antoine says, ‘standardised patterns of behaviours or financial transaction history can be recognised as falsified by trained professionals, including digital doppelgängers. Human beings with the right risk management mindset and penetration techniques supported by AI will continue to stand against fraudulent methods.
Furthermore, other techniques can be leveraged and will find expanded areas of application to complement Generative AI in the fight against counterfeit or fake identities. Video-proofing practices as well as common sense countermeasures difficult for trained electrons to master (think “Captcha” tests) will flourish. Blockchain certification and government-sponsored E-Identification will at last find their generic and welcome use.’
How to mitigate fraud risks
Pierre-Antoine maintains that ‘the pandemic ways of working and FinTech innovation had introduced remote identification well before GenAI became headline material. Online fraud is a constant irritant, and devastating for its victims, but society through regulation and education will manage to fight back.
Despite privacy concerns, platforming of shared identity details (already in use for credit scoring, criminal history, driving abilities, immigration statuses and health data for instance, across sectors and jurisdictions) will expand to physical features, since those are used for identification (prints, face, voice) as well as criminal purposes.
Collaboration among industry stakeholders and regulatory bodies
Patrick believes collaboration between industry, academia, and government is crucial for advancing detection solutions and staying ahead of new threats. Despite progress, challenges remain, including the risk of adversaries evading detection through clever manipulations. Continued research and innovation are needed to strengthen defences against deepfake threats.
According to Pierre-Antoine, areas of collaboration between the public and private sectors, be it for profit or not, and government agencies including law enforcement are numerous in this field. For organizations, it’s an opportunity to converge physical and digital security counter-measures and adopt a holistic risk management posture.
While deepfake technology poses significant challenges for identity verification, ongoing efforts to improve detection offer hope in the fight against fraud. By combining advanced algorithms, biometric authentication, real-time analysis, and collaborative efforts, businesses can better protect themselves and their customers from the dangers of AI-generated fake identities.
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Each campaign runs for 4-6 months and features regular collaborations with programmes across techUK.
techUK's latest sprint campaign is on Robotics & Automation technologies. Find out how to get involved by clicking here.
Running from September to December 2023, this sprint campaign explored how the UK can lead on the development, application and commercialisation of space technologies, bring more non-space companies into the sector, and ultimately realise the benefits of the New Space Economy.
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Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, Rory leads techUK's Emerging Technology and Innovation activity, working with many of the UK's most innovative tech companies to convene key stakeholders, work through key challenges and opportunities for industry, showcase best practice, and shape Government's thinking around future technologies, sectors and industries.
Focus areas include Robotics, Immersive, Web3, Metaverse, Photonics, Space, Gaming, Creative, Innovation policy, university spin-outs, and Futures & Horizon Scanning.
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Running from January to May 2024, this sprint campaign explored how the UK can lead on the development, application and commercialisation of the technologies set to underpin the Gaming & Esports sector of the future.
These include AI, augmented / virtual / mixed / extended reality, haptics, cloud & edge computing, semiconductors, and advanced connectivity (5/6G).
Activity took the form of roundtables, panel discussions, networking sessions, Summits, and thought leadership pieces. A report featuring member case studies and policy recommendations was launched at The National Videogame Museum in November 2024.
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Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, Rory leads techUK's Emerging Technology and Innovation activity, working with many of the UK's most innovative tech companies to convene key stakeholders, work through key challenges and opportunities for industry, showcase best practice, and shape Government's thinking around future technologies, sectors and industries.
Focus areas include Robotics, Immersive, Web3, Metaverse, Photonics, Space, Gaming, Creative, Innovation policy, university spin-outs, and Futures & Horizon Scanning.
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Running from July to December 2024, this sprint campaign explored how the UK can lead on the development, application and commercialisation of web3 and immersive technologies.
These include blockchain, smart contracts, digital assets, augmented / virtual / mixed / extended reality, spatial computing, haptics and holograms.
Activity took the form of roundtables, workshops, panel discussions, networking sessions, tech demos, Summits, thought leadership pieces, policy recommendations, and a report (to be launched in 2025).
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Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, Rory leads techUK's Emerging Technology and Innovation activity, working with many of the UK's most innovative tech companies to convene key stakeholders, work through key challenges and opportunities for industry, showcase best practice, and shape Government's thinking around future technologies, sectors and industries.
Focus areas include Robotics, Immersive, Web3, Metaverse, Photonics, Space, Gaming, Creative, Innovation policy, university spin-outs, and Futures & Horizon Scanning.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
Running from February to June 2025, this sprint campaign is exploring how the UK can lead on the development, application and commercialisation of robotic & automation technologies.
These include autonomous vehicles, drones, humanoids, and applications across industry & manufacturing, defence, transport & mobility, logistics, and more.
Activity is taking the form of roundtables, workshops, panel discussions, networking sessions, tech demos, Summits, thought leadership pieces, policy recommendations, and a report (to be launched in Q4 2025).
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Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, Rory leads techUK's Emerging Technology and Innovation activity, working with many of the UK's most innovative tech companies to convene key stakeholders, work through key challenges and opportunities for industry, showcase best practice, and shape Government's thinking around future technologies, sectors and industries.
Focus areas include Robotics, Immersive, Web3, Metaverse, Photonics, Space, Gaming, Creative, Innovation policy, university spin-outs, and Futures & Horizon Scanning.
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Laura Foster
Laura Foster
Laura is techUK’s Associate Director for Technology and Innovation.
Laura advocates for better emerging technology policy in the UK, including quantum, future of compute technologies, semiconductors, digital ID and more. Working alongside techUK members and UK Government she champions long-term, cohesive, and sustainable investment that will ensure the UK can commercialise future science and technology research. Laura leads a high-performing team at techUK, as well as publishing several reports on these topics herself, and being a regular speaker at events.
Before joining techUK, Laura worked internationally as a conference researcher and producer exploring adoption of emerging technologies. This included being part of the team at London Tech Week.
Laura has a degree in History (BA Hons) from Durham University and is a Cambridge Policy Fellow. Outside of work she loves reading, writing and supporting rugby team St. Helens, where she is from.
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- [email protected]
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- www.linkedin.com/in/lauraalicefoster
Rory Daniels
Rory Daniels
Rory joined techUK in June 2023 after three years in the Civil Service on its Fast Stream leadership development programme.
During this time, Rory worked on the Government's response to Covid-19 (NHS Test & Trace), school funding strategy (Department for Education) and international climate and nature policy (Cabinet Office). He also tackled the social care crisis whilst on secondment to techUK's Health and Social Care programme in 2022.
Before this, Rory worked in the House of Commons and House of Lords alongside completing degrees in Political Economy and Global Politics.
Today, Rory leads techUK's Emerging Technology and Innovation activity, working with many of the UK's most innovative tech companies to convene key stakeholders, work through key challenges and opportunities for industry, showcase best practice, and shape Government's thinking around future technologies, sectors and industries.
Focus areas include Robotics, Immersive, Web3, Metaverse, Photonics, Space, Gaming, Creative, Innovation policy, university spin-outs, and Futures & Horizon Scanning.
- Email:
- [email protected]
- LinkedIn:
- https://www.linkedin.com/in/rorydaniels28/
Tess Buckley
Tess Buckley
A digital ethicist and musician, Tess holds a MA in AI and Philosophy, specialising in ableism in biotechnologies. Their professional journey includes working as an AI Ethics Analyst with a dataset on corporate digital responsibility, followed by supporting the development of a specialised model for sustainability disclosure requests. Currently at techUK as programme manager in digital ethics and AI safety, Tess focuses on demystifying and operationalising ethics through assurance mechanisms and standards. Their primary research interests encompass AI music systems, AI fluency, and technology created by and for differently abled individuals. Their overarching goal is to apply philosophical principles to make emerging technologies both explainable and ethical.
Outside of work Tess enjoys kickboxing, ballet, crochet and jazz music.
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- [email protected]
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- tessbuckley.me
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- https://www.linkedin.com/in/tesssbuckley/
Usman Ikhlaq
Usman Ikhlaq
Usman joined techUK in January 2024 as Programme Manager for Artificial Intelligence.
He leads techUK’s AI Adoption programme, supporting members of all sizes and sectors in adopting AI at scale. His work involves identifying barriers to adoption, exploring solutions, and helping to unlock AI’s transformative potential, particularly its benefits for people, the economy, society, and the planet. He is also committed to advancing the UK’s AI sector and ensuring the UK remains a global leader in AI by working closely with techUK members, the UK Government, regulators, and devolved and local authorities.
Since joining techUK, Usman has delivered a regular drumbeat of activity to engage members and advance techUK's AI programme. This has included two campaign weeks, the creation of the AI Adoption Hub (now the AI Hub), the AI Leader's Event Series, the Putting AI into Action webinar series and the Industrial AI sprint campaign.
Before joining techUK, Usman worked as a policy, regulatory and government/public affairs professional in the advertising sector. He has also worked in sales, marketing, and FinTech.
Usman holds an MSc from the London School of Economics and Political Science (LSE), a GDL and LLB from BPP Law School, and a BA from Queen Mary University of London.
When he isn’t working, Usman enjoys spending time with his family and friends. He also has a keen interest in running, reading and travelling.
Authors
Pierre-Antoine Boulat
