British Engineering Giant Arup Falls Victim to $25 Million Deepfake Scam
London-based multinational design and engineering firm Arup, renowned for its work on iconic structures like the Sydney Opera House, has confirmed falling prey to a sophisticated deepfake scam that resulted in a $25 million loss. The company disclosed on Friday that an employee in its Hong Kong office was duped by fraudsters using fake voices and images.
Arup, in a statement to CNN, revealed it reported the incident to Hong Kong police in January. “We regret to confirm that fake voices and images were utilized in this scam,” a company spokesperson stated via email. They assured that despite the scam, Arup’s financial stability and business operations remained unaffected, and no internal systems were compromised.
The incident unfolded when a finance employee at Arup received a phishing email that appeared to be from the company’s UK office, requesting a secret transaction. The employee, initially suspicious, was convinced after a video call with individuals he believed were the company’s chief financial officer and other staff members. These individuals were, in fact, sophisticated deepfake recreations.
Convinced of the authenticity, the employee transferred a total of 200 million Hong Kong dollars (approximately $25.6 million) over 15 transactions. The Hong Kong police, who did not name Arup at the time, disclosed in February that the employee had been misled into believing the deepfake participants were legitimate colleagues.
Deepfakes, highly realistic fake videos generated using artificial intelligence, have become a significant concern due to their potential for misuse. Earlier this year, AI-generated pornographic images of pop star Taylor Swift circulated online, highlighting the dangers of such technology.
Arup’s Global Chief Information Officer, Rob Greig, noted the increasing frequency and sophistication of cyberattacks. “Our operations face regular attacks, including invoice fraud, phishing scams, WhatsApp voice spoofing, and deepfakes,” Greig said in the emailed statement. “The number and complexity of these attacks have risen sharply in recent months.”
In an internal memo, Arup’s East Asia regional chairman, Michael Kwok, emphasized the growing threat of these sophisticated scams. He urged employees to stay vigilant and informed about the various techniques used by scammers.
Kwok recently returned to his role after replacing Andy Lee, who departed from the company after 26 years, as announced on his LinkedIn page earlier this month.
