Deepfakes pose a significant potential risk to the gaming industry, given their ability to deceive and manipulate visual content.
AI-powered technology is becoming a double-edged sword for the gambling industry, as it's being used to create deepfakes and generate synthetic identities, posing a significant risk for operators and consumers alike. The need for stronger security measures and increased standardization is becoming increasingly apparent.
Recently, Sky News reported the discovery of an AI-generated video advertising gambling apps, featuring fake endorsements by Sky News presenters. This type of content, spread through social media, promotes illegal gambling sites hidden within gaming applications on the Apple app store.
The UK's Gambling Commission has warned about the prevalence of AI deepfakes and their connections to emerging money laundering and terrorist financing risks. Last year, the UK's Joint Money Laundering Intelligence Taskforce issued an amber alert on the use of AI to bypass customer due diligence checks. The National Crime Agency (NCA) even took down a website offering AI-generated identity documents for just $15.
To combat this, the Gambling Commission has advised all operators to train staff in the assessment of customer documentation for AI-generated documents. But it's not just the gambling industry that's at risk. As AI technology becomes more sophisticated, so does the potential for fraud and identity theft.
Dr Michaela MacDonald, senior lecturer in law and technology at Queen Mary University of London, explains that synthetic identity theft involves blending genuine and fabricated personal information to generate a completely new, fake identity. This can be used to bypass traditional Know Your Customer (KYC) systems, defeating facial recognition, exploiting support chats, or spoofing voice-activated authentication.
Research from the Alan Turing Institute has highlighted that AI-enabled crime is being driven by the technology's ability to automate, augment, and vastly scale up criminal activity volumes. The report stated that UK law enforcement is not adequately equipped to prevent, disrupt, or investigate AI-enabled crime.
While legislation may help deter the threat of AI-enabled crime, a more robust and direct approach is needed, focusing on the proactive deployment of AI systems in law enforcement.
Operators must keep up to date with best practices and technological innovations to mitigate the risk of AI-generated synthetic identities. They can enhance AI-based document checks with biometrics such as facial verification and liveness detection checks. The use of device fingerprinting and geolocation services would also increase detection rates.
Machine learning can identify inconsistencies in player activity that may provide an additional layer of security. Emerging technologies such as end-to-end orchestration, data intelligence, and artificial intelligence will help detect synthetic identities and manipulated materials.
The gambling sector has long been a target for manipulated documents and fraudulent activity. Regulators may be lenient in some early cases of AML rules being perpetrated by deepfake technology, but operators must engage with the authorities to ensure they are adequately addressing their regulatory obligations.
The UK's 2023 Online Safety Act sets out rules to curb online fraud, including requiring service providers to introduce measures that tackle fraud and terrorism. This includes explaining how they undertake account verification, as well as the inclusion of automatic detection software that finds and removes advertisements or posts linked to the sale of stolen credentials or faked credentials.
The EU's Digital Identity Framework Regulation, which came into force in 2024, requires EU member states to offer at least one digital identity wallet to citizens. These apps can help identify individuals to public and private online services, potentially reducing the risk of ID fraud.
In conclusion, the rise of AI technology presents a significant challenge for law enforcement and the private sector in preventing fraud and identity theft. Operators must stay informed, adapt to new technologies, and collaborate with regulatory bodies to stay ahead of the threat. The industry and regulatory stakeholders may need to come to some form of consensus about best practices to ensure a unified approach to synthetic identity detection and prevention.
- The rise of AI-generated deepfakes and synthetic identities in the gambling industry poses a significant risk for both operators and consumers alike.
- Machine learning can help operators identify inconsistencies in player activity, providing an additional layer of security against AI-generated synthetic identities.
- The gambling sector, like other industries, faces an increased risk of fraud and identity theft as AI technology becomes more sophisticated.
- To combat AI-enabled crime, a more robust and direct approach is needed, focusing on the proactive deployment of AI systems in law enforcement.
- The EU's Digital Identity Framework Regulation, which came into force in 2024, can potentially reduce the risk of identity fraud by offering digital identity wallets to citizens.
