Reality Defender Tackles AI Fraud Risks at Money20/20

Reality Defender has announced a strategic partnership with NVIDIA and Oracle to combat the rising threat of AI-generated fraud in financial services, as deep fake technology becomes increasingly accessible to bad actors.

Founded in 2021, the New York-based company provides enterprise-grade synthetic media detection, helping organisations detect AI-generated content including images, video, audio, and text. Its platform leverages advanced machine learning to identify manipulated or artificially created media in real-time, protecting against emerging digital threats.

Rising Threat of Real-Time Fraud 

Ben Coleman, Co-founder and CEO of Reality Defender, says the democratisation of deepfake technology poses significant risks to financial institutions. 

“The real challenge is that these tools are available to anybody. Anyone can access synthetic voice or face generation tools through their smartphone - there are tens of thousands of free or low-cost options available,” he explains.

The company has observed an uptick in real-time deep fake fraud attempts within call centres, where fraudsters use synthetic media to impersonate customers to gain unauthorised account access and initiate fraudulent transactions. 

The partnership with NVIDIA and Oracle aims to expand these protections to video conferencing, enabling banks to verify the authenticity of both customers and their own representatives.

Regulatory Engagement and Consumer Protection 

The solution also addresses vulnerabilities in Know Your Customer (KYC) and identity verification processes. 

“Fraudsters might have access to personal information like birthdates and social security numbers and can generate convincing synthetic faces,” says Ben. 

“By detecting AI-generated identities early in the verification process, banks can save resources by avoiding unnecessary authentication steps when they identify a synthetic identity."

Reality Defender, which employs 42 people including several PhD researchers in its Tribeca headquarters, has been actively engaging with policymakers globally to address the regulatory challenges posed by rapid AI advancement. 

The company recently provided testimony to the US Senate Judiciary Committee, advocating for balanced regulation that promotes innovation while protecting consumers.

“AI is accelerating much faster than regulations can keep up with," Ben notes. “While we're optimistic and pro-AI acceleration, regulations still have some time to catch up. 

“When we speak with leaders in Washington DC, we advocate for regulations that support AI innovation while providing clear protections for consumers in fraud cases. When our team of PhDs can't tell the difference with their own eyes, what does that mean for the average person?”

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