Molotov Cocktail of Social Engineering

AI + Deepfakes = Data = Just Enough To Fool Everyone

Author

Tedd Huff
April 10, 2025

“The technology to fake your CEO’s face and voice in a live video call already exists, and it’s being used.”

Jeff Scheidel, COO | authID

In this episode of FinTech Confidential Uncut, listeners are introduced to a conversation between host Tedd Huff and Jeff Scheidel, COO at authID. The discussion focuses on how artificial intelligence is influencing cyber threats in financial services. By examining the impacts of deepfakes, voice cloning, and large language models, the episode sheds light on the tactics being used to bypass traditional security methods and deceive individuals and organizations.

The episode presents a range of real-world scenarios where AI-enabled attacks have succeeded. These include fraud cases involving fake video calls, synthetic identities, and phishing schemes that use clean grammar and personal data to appear legitimate. The conversation outlines how financial institutions, being central to data and money movement, are especially targeted and must act quickly to adapt. As the technologies used in scams become more advanced and easier to access, the urgency for effective security grows.

The use of biometric authentication is introduced as a countermeasure to these threats. The episode explains how facial recognition and liveness detection can prevent unauthorized access by verifying that a live person is interacting with a system. Emphasis is placed on passive liveness detection, which is harder for AI to mimic. These techniques are presented not as optional enhancements but as essential elements of modern security architecture in financial services.

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There is also significant attention given to the idea of synthetic fraud. Unlike identity theft, where an attacker poses as a real person, synthetic fraud involves creating entirely new identities using fabricated details and manipulated documents. These fake identities can be built up over time to gain trust and then used to access credit, create business accounts, or make large financial requests. This type of fraud is challenging to detect, especially when deepfake tools are used to generate matching images and information.

Concerns about data privacy and compliance are also addressed. The episode outlines how consumer resistance to facial recognition stems largely from concerns about how their data will be stored and used. Solutions are shared that do not store biometric images or data, instead relying on cryptographic methods that remove the need for sensitive information to be retained. This approach is framed as being compliant with current laws and more acceptable to privacy-conscious users.

Education and awareness are noted as key defenses against fraud. Examples are given where scams succeed due to the victim’s emotional reaction or lack of knowledge about the tactics used. The episode emphasizes the value of training consumers and employees alike in how to recognize threats and respond effectively. Tools that verify the legitimacy of URLs or customer service channels are mentioned as ways to avoid common traps.

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Overall, the episode provides a structured overview of current challenges and methods in fraud prevention. It discusses how AI is both the cause of new threats and a tool for stopping them. The episode recommends practical strategies for organizations to adopt in order to maintain trust and protect users in an increasingly complex threat environment.

TLDR:

In this episode of FinTech Confidential Uncut, host Tedd Huff talks with Jeff Scheidel, COO at authID, about the rise of AI-driven fraud targeting financial institutions. They explore how deepfakes, voice cloning, and large language models are enabling scammers to impersonate executives, create synthetic identities, and build fake websites and phishing emails with alarming accuracy. Real cases include a $25 million loss from a deepfake video call and voice cloning scams using only seconds of audio.

The episode highlights the limitations of current security tools, such as facial recognition failing due to minor appearance changes, and the inefficiency of manual fraud reviews. Scheidel explains how biometric systems using passive liveness detection and cryptographic keys offer stronger protection without storing facial data. The discussion makes clear that financial organizations must quickly adopt smarter authentication methods and better user education to stay ahead of rapidly advancing threats.

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Key Highlights:

$25M Vanished in Minutes with One Deepfake Video

An AI-generated video tricked staff at a UK company into moving $25 million across five accounts. The attackers faked a video call using cloned voices and visuals of executives. Even with doubts, the employee believed it was real because the deepfake matched the faces and voices of people he trusted. This case shows how convincing deepfake technology has become and how fast it can be used to drain funds before detection.

AI Tools Let Criminals Build Fake Bank Sites in Hours

New AI-powered site builders are being used to make fake financial websites that steal data from users. These fake sites can go live in just a few hours and often copy the design of real banks or fintech platforms. Users are tricked through search engines, emails, or even sponsored ads. Once on the site, they unknowingly share login credentials, card numbers, and other sensitive information.

Phishing Emails Now Look Perfect Thanks to AI

Large language models are now writing phishing emails that are free from grammar errors and weird phrasing. Scammers feed in personal details and the AI crafts convincing messages targeted to each victim. Unlike old phishing emails with bad spelling, these new messages are nearly impossible to detect without careful inspection. The scale and quality of these attacks have drastically improved, making them more dangerous than ever.

Face Recognition Tech Fails Over Facial Hair

ID verification systems are failing due to minor appearance changes like growing a beard. Users are rejected during selfie verification because their current look doesn’t match their ID photo. Some are forced to visit physical branches or undergo lengthy calls to prove their identity. This problem highlights the limits of rigid facial recognition systems and their inability to adapt to real-life changes.

Voice Cloning Scam Tricks Father Out of $9,000

A man received a phone call from what sounded like his son in trouble. The voice begged for help after a supposed accident. Another call from a fake lawyer demanded cash for bail. The man acted quickly and paid $9,000—only to later find out it was all fake. The voice was cloned using a short sample, proving how easily voice AI can be used to exploit emotions.

Manual Fraud Checks Are Slowing Companies Down

Some fintech firms are still relying on teams of people to manually review customer IDs and documents. One company even pauses regular work every Wednesday to go through fraud checks by hand. This outdated method can’t keep up with the scale of attacks and leads to high labor costs, slow processing times, and security gaps.

Fake Texts Claim Your License Will Be Suspended

People are getting text messages warning that their driver’s license will be revoked unless they pay fines through a provided link. These scams use realistic-sounding language and fake government sites. Many of these messages come from foreign numbers, but the scam still works because it triggers fear and urgency in the recipient.

Hackers Are Tracking Who Approves Payments at Your Company

Attackers are using phishing emails not just to steal info but to map out how your business works. They identify who requests, approves, and sends payments. Once they know the roles, they impersonate employees and send fake payment orders. It’s an efficient way to exploit company structures and redirect money without detection.

Fake People Are Getting Real Business Loans

Criminals are using synthetic identities with fake employment records, credit scores, and even tax records to get business loans. Some even list fake relatives as co-signers. These identities are built over time, gaining trust before making large financial requests. When the loan hits, they vanish with the cash, leaving no real person to trace.

Your Face Isn’t Stored—It’s Turned Into a Secure Key

To answer privacy concerns, some systems are replacing stored biometric data with encrypted public-private keys. These keys can’t be traced back to your face and are rebuilt each time you authenticate. It meets strict legal rules and removes the risk of face data leaks. This method provides strong security without making users give up control over their identity.

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Takeaways:

1️⃣ Stop Falling for Fake Customer Support

Scammers are launching fake support lines that sound real and use AI to guide conversations. Victims think they’re speaking with official agents while handing over private information and account access.

2️⃣ Watch How One Photo Fakes a Live Identity

New AI tools can animate a single photo into a lifelike video call. These tools make faces blink, smile, and talk in real-time, giving attackers the power to impersonate anyone convincingly.

3️⃣ Use Biometrics to Expose Deepfake Lies

Biometric systems now identify fake visuals by analyzing hidden details deepfakes leave behind. These systems test for signs of manipulation to confirm whether a person is real or generated.

4️⃣ Catch Scammers Building Fake Credit Profiles

Fraudsters use synthetic data to build credit histories that appear legitimate. They make small transactions to gain trust before applying for big loans and cashing out undetected.

5️⃣ Block Voice Scams Made in Under 5 Seconds

AI can now clone a voice using a three-second clip. Scammers use these fakes to pose as family members in distress, pushing victims to send money before verifying anything.

Jeff Scheidel:

authID

Cheap Fakes Are Now Deep Fakes: https://authid.ai/cheap-fakes-are-now-deep-fakes/

Robots Are Stealing My Stuff Blog: https://authid.ai/robots-are-stealing-my-stuff/

Fintech Confidential

Time Stamps:

00:00 Introduction to FinTech Confidential

01:32 Skyflow (sponsor)

02:35 The Rise of Deepfakes and AI in Fraud

04:31 Introducing Jeff Scheidel and His Expertise

05:50 The Evolution and Risks of AI Technology

07:00 Real-World Examples of AI-Driven Fraud

17:09 Solvpath (Sponsor)

17:58 The Role of Large Language Models in Scams

25:51 Biometric Security and Liveness Detection

30:51 Guidance for Financial Institutions

33:04 Teaching Family About Online Safety

34:24 Biometrics and Security Concerns

34:56 Facial Recognition in Public Spaces

38:55 Synthetic Fraud and DeepFakes

43:40 Clearingworks by Checkalt (Sponsor)

48:45 Manual Review and Fraud Detection

50:16 Best Practices for Fraud Prevention

58:28 Future of Fraud and Security

01:00:24 Advise for Fintech Founders

01:02:30 HawkAI - Realtime AI fraud Detection (Sponsor)

01:03:16 Disclaimer

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About The Guest:

Jeff Scheidel - COO - authID

Jeff Scheidel is the Chief Operating Officer at authID, bringing over 40 years of experience in software, with a specialized focus on identity and access management. Throughout his career, Jeff has served in key leadership roles at companies like Oracle and Socure, where he played a pivotal role in driving revenue growth and leading organizational changes. At authID, Jeff supports the company’s mission to deliver fast, accurate, and privacy-focused biometric authentication solutions. His work helps businesses across industries like fintech, healthcare, and e-commerce prevent fraud, secure transactions, and meet regulatory compliance through advanced identity verification technologies.

authid

authID (Nasdaq: AUID) is a biometric identity verification company that empowers enterprises to “Know Who’s Behind the Device™” at every step of the user experience—from onboarding and login to account transactions. Designed for speed, accuracy, and compliance, authID offers industry-leading authentication in under 700 milliseconds, with a false match rate of 1 in 1 billion. The platform is built to prevent fraud, detect deepfakes, support passwordless login, and enable secure account recovery. Tailored for industries like fintech, healthcare, retail, and e-commerce, authID’s privacy-preserving solutions help businesses meet regulatory demands while delivering frictionless, secure user experiences.

About the Host:

Tedd Huff is the Founder of Voalyre, and Diamond D3, professional services consulting firms focused on global payments and marketing. He is also a video podcast host and executive producer on the Fintech Confidential network.

Over the past 24 years, he has contributed to FinTech startups as an Advisory Board Member, Co-Founder, and Chief Experience Officer, providing strategic and tactical direction for Global Payments OpenEdge, Heartland Payments, Nuvei, and TSYS, among others, focusing on growth while delivering innovation, process improvements and user experience-driven value to simplify the complexity of payments.

DD3 Media is a media creation, management, and production company delivering engaging content globally

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