Cyber criminals con energy company in artificial intelligence scam

Fraudsters fake executive’s voice during telephone call as British firm duped in first known case of its kind

A BRITISH energy firm was duped into paying almost £200,000 to cyber criminals who used artificial intelligence to fake an executive’s voice, in one of the first known scams of its kind. The chief executive of the unnamed company was asked to send the money via bank transfer during a telephone call that appeared to be from his boss at the company’s German parent.

The software was able to accurately mimic the executive’s accent and style of speaking, according to insurance firm Euler Hermes, which disclosed the fraud.

Npower, which is owned by Germany’s RWE, said it was not the company affected, while E.ON, the German energy giant with a UK power subsidiary, did not respond to a request for comment.

Euler Hermes said the fraudsters had directed the executive to make the €220,000 (£198,600) bank transfer to a Hungarian bank account immediately, claiming it was an urgent payment to a supplier.

The money was then moved to Mexico shortly after, according to The Wall Street Journal.

The executive became suspicious when a subsequent phone call arrived from an Austrian phone number later that day, more money.

“Deepfake” software that impersonates voices or can manipulate video has become increasingly sophisticated in asking him to send recent years due to advances in artificial intelligence technology, leading security experts to warn that it will soon be impossible to distinguish between real and fake audio and video.

The software typically works by processing a real audio or video recording and replicating characteristics of the individual’s speech and appearance.

Researchers have warned that the technology could be used for propaganda and misinformation, but there are few known cases of it being used to defraud companies. Euler Hermes said its insurance had covered the fraud, and that a police investigation into the case had concluded. The fraudsters responsible have not been identified.

Other British energy companies with German owners include the power generation arm of RWE and Uniper, which was spun off from E.ON in 2016. The companies did not comment.

The UK division of Siemens, which provides equipment to power companies, said it was not the company affected.