The Financial Sector Conduct Authority of South Africa has
issued a public warning as deepfake technology and AI-driven voice cloning
increase, prompting concerns among regulators and industry stakeholders about
growing financial scams.

OpenAI CEO Warns of AI-Driven Fraud Crisis

Sam Altman, CEO of OpenAI, recently addressed the financial
sector at a Federal Reserve conference. He warned of a growing fraud crisis
fueled by AI’s ability to mimic human voices and bypass existing security
measures. Altman criticized voiceprint authentication systems as outdated and
ineffective against current AI technology. He stressed the urgent need for new
verification methods to counter the rise of realistic AI-generated voice and
video clones.

The Federal Reserve expressed interest in working with
industry stakeholders to develop solutions to this emerging threat.

Deepfakes Used to Impersonate Trusted Public Figures

The regulator highlighted concerns about AI-generated videos
and audio clips being used to impersonate trusted individuals, including
well-known public figures such as Siya Kolisi and Connie Ferguson, to deceive
consumers.

Meanwhile, the FSCA advised the public to remain cautious
and to verify the legitimacy of any financial service provider through official
FSCA channels before conducting any business.

FSCA Advises Public to Verify Financial Providers

The FSCA also advises the public: “Be cautious when
considering investment or trading offers on social media platforms or any
unsolicited offers. If something feels off or seems too good to be true, it is
recommended to pause and verify with the FSCA whether the entity is authorized
to provide financial services.”