Seeking to combat the increasing use of artificial intelligence for fraud and defamation, State Sen. Josh Becker introduced legislation on Feb. 19 that would raise penalties for scams involving deepfake technology and create new avenues for removing the offending images.
The impetus for Becker’s bill is rooted in cases where bad actors have used the technology to commit fraud or harm people’s reputations. In one case, a woman from Southern California lost her home and life savings when scammers used deepfake technology to impersonate the actor Steve Burton. The woman believed she was in a relationship with Burton, and transferred the money to the scammers.
In other cases, AI…
PROCUREMENT & EXPENDITURE (STOPPING KICKBACKS)
Procurement fraud usually involves inflated invoices or “fictitious” vendors.
- The Three-Way Match: Never pay an invoice unless you have matched the Purchase Order (PO), the Delivery Note (signed), and the Supplier Invoice.
- Vendor Master File Review: Review your vendor list annually. Look for suppliers with the same bank details or physical addresses as your employees.
- Dual Authorization: Implement a “Two-to-Sign” rule for all EFT payments above a certain threshold (e.g., R5,000).
- No “Cashing” of Checks: If you still use physical checks, strictly prohibit “Cash” as a payee and store blank checks in a dual-lock safe.