‘tis the season of fun, festivities, and fraud. Ensure your accountancy practice is resilient to the risks.

As the festive season approaches, accountants must remain vigilant against an evolving landscape of fraud risks, including the emerging threat of AI-generated deepfakes. Here’s how to protect yourself and your clients during this vulnerable period.

Heightened Awareness During the Holiday Rush

The end-of-year festivities often bring a flurry of financial activity, creating opportunities for fraudsters to exploit the chaos. Accountants should:

• Double-check all transaction requests, especially those that seem urgent or unusual.
• Implement a mandatory cooling-off period for large transfers, allowing time for verification.
• Remind clients about the increased risk of fraud during this busy time.

Beware of Deepfake Deception

The rise of AI-generated deepfakes poses a significant new threat. Criminals can now create convincing video and audio impersonations of clients or executives. To counter this:

• Establish multi-factor authentication protocols for all high-value transactions.
• Train staff to recognise potential deepfake indicators, such as unnatural facial movements or audio inconsistencies.
• Implement a callback verification system using pre-established contact numbers for all significant financial requests.

Strengthen Digital Defences

With many working remotely during the holiday period, cybersecurity becomes even more critical:

• Ensure all devices and software are updated with the latest security patches.
• Use secure, encrypted channels for all client communications.
• Implement strict access controls and monitor for any unusual login activity.

Client Education is Key

Proactively educate clients about the latest fraud tactics:

• Send out a holiday security newsletter highlighting current risks, including deepfake scams.
• Provide clear guidelines on how your firm will and will not request information or transactions.
• Encourage clients to report any suspicious communications immediately.

Enhance Internal Controls

Review and tighten your internal processes:

• Implement segregation of duties for financial transactions.
• Conduct surprise audits to ensure compliance with security protocols.
• Regularly update and test your incident response plan.

Leverage Technology Wisely

While AI poses new threats, it can also be a powerful ally:

• Utilise AI-powered fraud detection systems to flag unusual patterns or behaviours. such as Meysey.
• Implement voice recognition technology for phone verifications.
• Consider blockchain solutions for creating immutable transaction records.

Stay Informed and Prepared

The fraud landscape is constantly evolving:

• Subscribe to fraud alert services and stay updated on the latest scams.
• Participate in industry forums and share information about new threats.
• Conduct regular staff training on emerging fraud techniques, including deepfake recognition.

Conclusion

As we enter the festive season, accountants must balance holiday cheer with heightened security awareness. The threat of deepfake fraud adds a new layer of complexity to an already challenging landscape. By implementing robust verification processes, leveraging technology, and maintaining open communication with clients, accountants can significantly reduce their risk exposure. Remember, a healthy dose of scepticism and a commitment to due diligence are your best defences against fraud, no matter how sophisticated the tactics become. By staying vigilant and adapting to new threats, accountants can ensure a secure and joyous holiday season for themselves and their clients.