Almost 50% of New Zealand firms fall for deepfake scams: Report

A new report reveals that nearly half of New Zealand businesses targeted by deepfake scams have fallen victim, highlighting the escalating risk posed by this sophisticated cybercrime. According to a survey conducted by Mastercard, 18% of businesses in New Zealand were subjected to deepfake scams in the last year, and among these, 47% were deceived by the fraudulent content.

Deepfake technology, which manipulates images, videos, and audio to create highly convincing but fake content, has become a tool for cybercriminals to defraud businesses. These scams often involve impersonating individuals in positions of trust, tricking organisations into divulging sensitive information or transferring money under false pretenses. In New Zealand, scammers most commonly posed as customer service representatives (38%), clients (29%), and suppliers or vendors (26%).

The report also found that deepfake scams have expanded globally. Recent research from Regula, a security firm, showed that the incidence of audio and video deepfakes increased to 49% across five other countries in 2024, indicating that New Zealand is not alone in facing this rising threat.

In New Zealand, scammers have impersonated a wide range of individuals within businesses, including CEOs, board members, and employees, as well as external figures like law enforcement officers. By creating highly realistic fake videos, images, or audio recordings, cybercriminals have been able to exploit the trust placed in these roles to trick organisations into making costly mistakes.

One of the key factors that makes deepfake scams so dangerous is their ability to mimic human interactions with incredible precision. This often leaves the targeted employees feeling vulnerable, as the fake content can be so convincing that it becomes nearly impossible to distinguish from reality.

Despite the growing threat, many businesses in New Zealand are still unprepared to tackle deepfake scams. Mastercard’s survey found that 22% of business leaders are not confident their staff can detect deepfakes, leaving companies vulnerable to sophisticated attacks.

However, some organisations are taking steps to safeguard against these cyber threats. Key measures include:

• Identity verification for sensitive access: 43% of businesses are using more robust identity verification processes to prevent unauthorised access to critical systems or information.
• Cybersecurity training: 39% have introduced dedicated training to help employees recognise and respond to potential deepfake scams.
• Financial transaction monitoring: 29% of companies have added extra layers of security around financial transactions to prevent fraud.
• Stricter authentication for payment requests: 26% are ensuring that payment approvals go through additional verification steps to avoid fraudulent transfers.

However, the report also highlighted that 26% of businesses admitted they had not implemented any specific measures to protect themselves from deepfake threats, underscoring the need for more comprehensive preparedness across industries.

Call for vigilance

With AI-driven threats like deepfakes becoming more sophisticated, cybersecurity experts are urging businesses to stay vigilant and proactive. Mastercard’s Vice President for Security Solutions in Australasia, Mallika Sathi, noted that the misuse of generative AI, including deepfakes, is a growing concern for both consumers and companies.

Sathi emphasised the importance of continued education and awareness, stating that as deepfake technology becomes more advanced, organisations must equip their teams with the knowledge and tools to recognise and prevent these types of scams.

“Deepfakes can be used in various scam formats—whether video, images, or audio—so it’s crucial that businesses and consumers alike remain informed and vigilant as these threats evolve,” she said.

Reducing the risk

To mitigate the risks associated with deepfake scams, businesses are encouraged to adopt a multi-layered approach to security. This includes not only improving technology to detect deepfakes but also fostering a culture of cybersecurity awareness within the organisation. Regular training, stringent identity verification processes, and updated cybersecurity protocols can help employees stay alert to the dangers posed by AI-driven scams.

Ultimately, as cybercriminals continue to leverage emerging technologies like deepfakes, New Zealand companies must be prepared to adapt and strengthen their defences. By taking proactive steps now, businesses can better protect themselves from falling victim to these highly deceptive scams in the future.