'Deepfake' scam in China fans worries over AI-driven fraud

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'Deepfake' scam in China fans worries over AI-driven fraud
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A fraud in northern China that used sophisticated 'deepfake' technology to convince a man to transfer money to a supposed friend has sparked concern about the potential of artificial intelligence (AI) techniques to aid financial crimes.

AI Artificial Intelligence words are seen in this illustration taken, May 4, 2023. REUTERS/Dado Ruvic/Illustration/

China has been tightening scrutiny of such technology and apps amid a rise in AI-driven fraud, mainly involving the manipulation of voice and facial data, and adopted new rules in January to legally protect victims.Police in the city of Baotou, in the region of Inner Mongolia, said the perpetrator used AI-powered face-swapping technology to impersonate a friend of the victim during a video call and receive a transfer of 4.3 million yuan .

The man only realised he had been duped after the friend expressed ignorance of the situation, the police added, saying they had recovered most of the stolen funds and were working to trace the rest.

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