British Engineering Giant Arup Falls Victim To $25 Million Deepfake Scam

A British engineering firm, known for iconic structures like the Sydney Opera House, recently revealed how it was ensnared in a deep fake scam targeting one of its employees in Hong Kong, resulting in a loss of $25 million.

London-based Arup confirmed to CNN on Friday that they reported the fraud incident to Hong Kong authorities in January. The company acknowledged the use of fake voices and images in the elaborate scam, which targeted a finance worker in Hong Kong. While details remain scant due to an ongoing probe, the company spokesperson said that the incident didn’t compromise Arup’s financial stability or business operations. Moreover, internal systems remained secure despite the fraudulent episode.

In February, Hong Kong police unveiled the intricate nature of the scam. The employee, lured by what appeared to be a video call with high-ranking company officials, was in fact engaging with deepfake recreations of the CFO and other staff members. Though initially suspicious of a phishing email, the worker was reassured during the video call by the convincing resemblance to colleagues.

The victim authorized a series of transactions totaling 200 million Hong Kong dollars, equivalent to $25.6 million, across 15 transfers. This financial loss underscores the sophistication of the fraudulent operation. “Deepfake” technology, often associated with realistic yet fabricated videos, has raised concerns globally. Earlier this year, AI-generated pornographic images of Taylor Swift circulated online, highlighting the potential misuse of AI in creating deceptive content.

Rob Greig, Arup’s global chief information officer, expressed the firm’s vulnerability to various cyber threats, including invoice fraud, phishing scams, and deepfakes. Notably, he cited a marked increase in the frequency and sophistication of these attacks in recent months. Arup’s East Asia regional chairman, Michael Kwok, stressed the need for vigilance against evolving scamming techniques. In a memo obtained by CNN, Kwok underlined the growing threat posed by sophisticated cyber attacks and urged employees to remain vigilant.