A recent viral video of the actor Bill Hader morphing into Tom Cruise during a TV interview brought ?deepfakes? - the art of image manipulation via machine-learning algorithms that seamlessly swap moving human faces - to a horrified mainstream.

In an era where ?fake news? is widespread, the ability to doctor footage of people to such a realistic extent is further evidence that the Information Age is giving way to the Misinformation Age, and demonstrates how exposed we all are to the normalisation of fraud. 

Given the financial rewards on offer, it was only a matter of time before bad actors began to weaponise advanced technology such as this to infiltrate the corporate world and potentially destroy the trust that has built up through business partnerships.

Cybersecurity firms have reported hackers using ?deepfake? technology to impersonate the voices of CEOs and send impersonating messages to their chief financial officers ordering money transfers.

Millions of dollars were stolen from three companies after the scammers used an AI program trained on speech that had been pulled from the executives? appearances in earnings calls, YouTube videos and TED talks. 

This kind of high-tech heist sounds like something out of a Tom Cruise film, however, the threat is not a futuristic vision but an imminent reality for businesses who may be lax about data validation.

Confirming financial data is all about finding truth, but for auditors, bankers, lawyers, and credit managers - arguably the most important parts of any business network - this task has become more difficult and complex than ever as our trust in the things we see and hear is routinely shattered.

One of the big UK business stories this year has been the collapse, seemingly out of nowhere, of high street bakery Patisserie Valerie, which was previously worth £450 million.

The firm uncovered 'significant, and potentially fraudulent, accounting irregularities? during the course of an internal investigation, with the probe focusing on two unauthorised and unreported overdrafts of almost £10 million. The overdrafts were approved by HSBC and Barclays, the bakery's main banks, indicating that something was amiss in the audit confirmation process. 

It later emerged the firm's largest shareholder and chairman, entrepreneur Luke Johnson, had been duped by a fake picture of its financial health, which in turn triggered his suspicions over the clean bill of health the firm was given by its auditors.

For Patisserie Valerie see Parmalat, Enron, Lehman Brothers, and countless other stories of corporate malfeasance. Failure to root out fraud in the audit confirmation process can destroy corporate reputations, sink market valuations and wipe out profits. It can ultimately ruin the lives of employees and shareholders.

According to the Association of Certified Fraud Examiners (ACFE), corporate fraud increases during times of economic uncertainty and geopolitical instability. It said the 2008 financial crisis triggered a huge upswing in corruption, fraudulent disbursements and fraudulent statements. 

It is therefore essential that during times of geopolitical uncertainty the corporate world not only prepares for the inevitable impact of fraud-enabling technologies that are emerging, but also educates employees about existing threats and guards against complacency.

We have seen first-hand through our work helping banks, law firms, auditors and creditors that there is a desire to re-evaluate the financial confirmation process and create a new network that protects everyone in the chain. 

Restoring trust in the audit process is certainly not Mission: Impossible. Nonetheless, in a world of deepfakes, fake news and CEO fraud, integrating stronger, smarter and faster authentication tools into your data pipelines may be crucial to stop your business from self-destructing.

UK Finance are running two events that will cover the above topics 

1. Cyber enabled crime will be covered at the forthcoming Economic Crime Congress on 12 February 2010.
2. At our upcoming Digital Innovation Summit (15 October) we'll discuss new technology models that offer unparalleled opportunity to transform business models and how organisations need to be mindful of their introduction so that the next crisis is not a systemic technology crisis.