AI fraud hits SA businesses as deepfakes and voice cloning surge

More than half of South African businesses suspect or have already encountered artificial intelligence (AI)-powered fraud attacks, including deepfakes, voice cloning, and sophisticated phishing scams. Yet fewer than one in four believe their identity verification systems are highly effective at stopping fraud. AI threats This is according to findings that highlight growing concern over the rapid rise of AI-enabled cybercrime According to the report, 52.2% of businesses report that they have either observed or suspect attempts involving AI-generated phishing messages, voice impersonation or deepfake technology. At the same time, only 44.2% say they are confident in their ability to detect AI-assisted fraud. AI-driven identity fraud has emerged as the biggest threat facing businesses, with 76.6% of organisations identifying it as a key risk requiring urgent attention, a sharp increase from 59.2% two years ago. Declining confidence The research also found declining confidence in fraud prevention measures. Just 22.9% of businesses rate their identity verification systems as highly effective, down from 24.5% previously. According to the findings, deepfakes and synthetic identities are becoming increasingly prominent concerns. Nearly two-thirds of businesses said they are preparing for threats involving synthetic identities, where genuine and fabricated information is combined to create fraudulent profiles. Concern over deepfake-related fraud has also risen significantly. Many businesses appear ill-prepared for a successful attack. Less than a quarter have formal, tested procedures to respond to biometric fraud or identity compromise, while more than a third have no defined response plan. SME Smaller and medium-sized companies reported lower confidence in their fraud prevention systems than larger enterprises, suggesting that resources and technology remain a significant factor in preparedness. Despite growing concerns, investment in identity verification technology is rising. More than half of businesses plan to increase spending on verification and fraud-prevention tools over the next two years as organisations seek to strengthen defences against increasingly sophisticated AI-powered scams.