Deepfake Fraud: How AI is Deceiving Biometric Security in Financial Institutions

Group‑IB investigated an Indonesian financial institution’s large-scale deepfake fraud campaign in which attackers used stolen IDs, AI-generated deepfake photos, app cloning, virtual camera apps, and malware to bypass digital KYC and biometric liveness checks, resulting in over 1,100 detected fraudulent accounts; the report analyzes attacker techniques, estimates potential nationwide financial impact (~$138.5M over three months under stated assumptions), and recommends multi-layered anti-fraud controls and collaborative intelligence sharing.