As we get closer to 2025, now is the time to ensure your crisis communications plan is up-to-date, especially with a growing number of emerging threats. Take deepfakes, for example. While we often think of them in the context of politics and entertainment, they pose a serious risk to companies and few leaders are prepared for the fallout.

According to KPMG’s report Deepfakes: Real Threat, the number of deepfake videos is growing by 900% annually, spurring warnings from the FBI, yet only 29% of companies have taken proactive steps to protect themselves. The remaining 71% are in danger of reputational damage that can be difficult, and costly, to repair.

Why Businesses Need a Plan for Deepfakes

A fake video portraying a company executive in a compromising situation or endorsing a harmful product can go viral before the business even has time to respond. The longer it takes to correct the misinformation, the more it damages the brand. Once the content circulates across social media platforms, it becomes harder to control, leading to a ripple effect of negative publicity that can take months—or even years—to recover from.

Loss of Trust

Trust is the currency of any successful business, especially in consumer-facing industries like finance, healthcare or retail. When deepfakes go undetected, customers, partners, and stakeholders are exposed to false information, often in the form of fake endorsements or manipulated media.

The technology behind deepfakes, known as Generative Adversarial Networks (GANs), produces media that is almost indistinguishable from real content, making detection a monumental challenge. In fact, only about 3% of AI models can accurately identify deepfakes. Once one is discovered, the damage has already been done.

Fraud and Financial Exposure

They aren’t just a reputational threat; deepfakes also open the door to sophisticated fraud. Cybercriminals increasingly use AI-generated content to impersonate company executives, often leading to fraudulent financial transactions. Business Identity Compromise (BIC) schemes, for instance, use deepfake personas to deceive employees and partners.

Earlier this year it was reported a multinational company in Hong Kong took a nearly $26 million hit after a finance employee was duped. The worker was told to transfer the funds during a video conference call with the company’s CFO and several of their colleagues — they were all deepfakes.

Unfortunately, this wasn’t a one-off. According to Deloitte’s Center for Financial Services, fraud losses related to generative AI are expected to reach a staggering $40 billion by 2027, up from  $12.3 billion in 2023. Beyond the financial turmoil, these scenarios can affect the way a company is perceived, as customers may  doubt their security measures. The combination of monetary and reputational damage can cripple an organization.

Legal and Regulatory Risks

While there is little legal framework around the use of generative AI or GANS, due to the rapid emergence of the technology, regulatory oversight is certain to come into play in the future and businesses should take this into consideration.

As scrutiny over the spread of misinformation continues to grow, companies could be held accountable for failing to prevent or respond adequately to deep fakes that cause harm. Lawsuits and penalties add another layer of risk, further exacerbating the financial and reputational costs.

How To Protect Your Company

While the risks are clear, so are the solutions. Businesses must take a proactive approach to integrate deepfakes into their crisis communication plans. This involves:

• Crisis Communication Plans: Companies must update their crisis communication strategies to account for the potential fallout from deepfake incidents. This includes having a rapid response team to manage misinformation before it spirals out of control.
• Training and Awareness: Educating employees on the existence and risks of deepfakes is critical, as 32% of leaders have no confidence in their team’s ability to recognize one. Organizations should also establish protocols for verifying suspicious content.
• Implementing Detection Tools: Leveraging advanced AI tools capable of detecting deepfakes is essential. Businesses should work with tech partners to implement these solutions and stay ahead of the curve.
• Legal Preparedness: It’s important for organizations to consult with legal teams on the implications of deepfakes and ensure they are prepared to address any regulatory or legal challenges that may arise.

Helping You Plan, Prepare & Prevail

At ARTÉMIA, we combine extensive expertise in technology and communications to help you stay one step ahead. We know how to expect the unexpected, and our team is ready to support the reputational well-being of your business. Get in touch!