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Sep 20, 2026

OIG Concerned By AI Enabled Fraud

      From GovCio:

The Social Security Administration is coordinating with federal agencies to combat a growing threat from AI-enabled fraud as criminals increasingly use deepfakes and other emerging technologies to impersonate people and trusted institutions. 

As the federal government has moved quickly to adopt artificial intelligence, criminal groups have also embraced the technology, said Chad Bungard, chief strategy officer in SSA’s Office of Inspector General, at an event hosted by GovExec in Washington D.C. Tuesday. 

Bungard said rapidly advancing deepfake technology that can realistically mimic human voices and images has fueled fraud schemes targeting SSA. These schemes include attempts to change direct-deposit information, spoof identities and impersonate trusted institutions, sometimes using the names of real employees to appear legitimate. 

Citing data from Deloitte and Accenture, Bungard said losses from deepfake-enabled fraud are projected to reach $40.1 billion by 2027. 

“It’s something we have to take seriously,” he said. …

3 comments:

  1. The report cautioned that “agencies need solid, reliable data to avoid false positives.” Additionally, while these systems can work faster than humans, skilled humans in the loop are essential.

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  2. So on top of no countable gains in workforce productivity, and untold amounts of reputational harm and abuse from deepfakes, we also get tens of billions in monetary losses to fraud. Why is everyone so excited about this technology again?

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  3. Where is the technology to catch deep fakes. We can read millions of faces and license plates a day on the street, but there's no technology to flag a deep fake? I get it, deep fakes are almost perfect. ALMOST being the key word. Someone needs to develop software to root them out and flag them, preventing them from being posted. Look at ALL the tech out there and tell me this is not possible.

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