Good morning. The risk of cyberattacks has long been top of mind for CFOs, but in the coming months, the threat may pose even greater cause for concern as deepfakes and other new AI-driven tricks become more sophisticated.
In July, more than 100 top cybersecurity leaders gathered in Silicon Valley to talk about how to deal with the latest AI-driven threats. Fortune’s Sharon Goldman writes about this meeting in a new piece, “SoftBank, Mastercard, and Anthropic cyber chiefs sound alarms on AI phishing and deepfakes—but those aren’t the only things keeping them up at night.”
The group, including Fortune 500 chief information security officers, were surveyed by Team8, the venture capital firm behind the event. Three-quarters said that fighting AI phishing campaigns—email, text or messaging scams—is difficult. And more than half said AI-generated video or audio impersonations, or deepfakes, were becoming an increasingly common threat.
Goldman spoke exclusively to several retreat attendees and found out that AI phishing attacks and deepfakes may be just the tip of the iceberg.
“Gary Hayslip, chief security officer at investment holding company SoftBank, said one of his biggest concerns is how to protect private company data from supply chain attacks in the age of AI,” she writes. “That is, dealing with risks from third-party vendors that have added generative AI features to their tools but have not implemented the necessary governance around the use of Soft bank’s data.” You can read Goldman’s complete report here.
Meanwhile, a recent report by Medius, a finance software provider, found that 53% of finance professionals in the U.S. and U.K. experienced attempted deepfake scamming attacks, with 43% admitting they have fallen victim to an attack. In addition, 85% said deepfake technology poses an existential crisis to the business’ financial security. The findings are based on a survey of 1,533 finance professionals.
Generative AI is a tool that can enhance workplace productivity. However, in the wrong hands, it may offer “endless potential” to increase the nature and scope of fraud against financial institutions, according to research by Deloitte’s Center for Financial Services. For example, generative AI-enabled deepfakes incorporate a “self-learning” system that constantly checks and updates its ability to fool computer-based detection systems.
Deloitte predicts that the technology could enable fraud losses to reach $40 billion in the U.S. by 2027, from $12.3 billion in 2023, a compound annual growth rate of 32%.
“There won’t be one silver-bullet solution, so anti-fraud teams should continually accelerate their self-learning to keep pace with fraudsters,” according to Deloitte.
Sheryl Estrada
[email protected]
The following sections of CFO Daily were curated by Greg McKenna
Leaderboard
Tracy Kennedy was appointed permanent CFO of Air T (Nasdaq: AIRT), an air freight and logistics company. She succeeds Brian Ochocki, who left the company for another opportunity in September. Kennedy, the company’s chief accounting officer, assumed the CFO role on an interim basis. She has been at the company for over six years, serving as a director of accounting and corporate controller.
Lau Mei Suen was appointed CFO of Primega Group Holdings (Nasdaq: PGHL), a Hong Kong-based construction and transportation company, effective immediately. He succeeds Man Wing Pong, who has resigned due to personal reasons, the company said. Lau became CFO of China Hongbao Holdings in July 2023 before leaving the company last month.
Big deal
The U.S. economy is showing signs of entering a “goldilocks” phase of steady growth, declining inflation, and price stability, according to a new report from S&P Global Market Intelligence. The overall sentiment of S&P 500 firms remains exceptionally positive, the report said, hovering near a 15-year high. Financials, information technology, and real estate have been the sectors driving this optimism.
Discussions about inflation are no longer a constant on earnings calls. As of last quarter, the number of mentions on the subject have declined 80% since peaking in the first quarter of 2022, returning to pre-pandemic levels.
Meanwhile, dialogue about artificial intelligence on earnings calls sheds light on adoption trends. “AI fatigue” was apparent last quarter, with the total number of mentions down 29% from the peak in Q2 last year. Nonetheless, AI discussions broadened across sectors, with a 15% year-on-year increase across firms in non-tech industries.
Going deeper
“How Europe’s tech-shy Fortune 500 is embracing AI,” is a new feature from Fortune’s Ryan Hogg. The biggest companies in the second annual Fortune 500 Europe list are predominantly found not in tech, but “old” industries like energy, automotive, and finance. Early evidence suggests, however, that the continent’s biggest hitters don’t want to be left behind in the latest technological revolution.
Overheard
“It will take time to return Boeing to its former legacy but, with the right focus and culture, we can be an iconic company and aerospace leader once again.”
— Kelly Ortberg, CEO of Boeing, said in a statement shortly before the company reported a $6 billion loss for the third quarter, Fortune reported.
