When Trust Is Hacked - In early 2024, a multinational company lost over US$25 million in a shocking scam powered by deepfake technology. Attackers used artificial intelligence (AI) to impersonate a senior executive during a video call, tricking finance staff into transferring funds.
Closer to home, Malaysia has already seen similar attempts, including one involving a major financial institution. While that particular attack was stopped, it was a wake-up call: identity-based attacks powered by AI are no longer science fiction — they are real, growing, and dangerous.
Deepfakes: A New Kind of Threat
Phishing scams used to be obvious — badly written emails or suspicious links. Today, however, an attacker can appear on screen with the face and voice of a trusted colleague, making urgent requests that seem entirely legitimate.
The numbers tell the story. A 2023 global study showed that deepfake-related incidents rose by more than 700%, with Southeast Asia becoming an emerging hotspot. These attacks include:
This isn't just about money. These scams threaten the credibility of organisations, expose critical infrastructure, and undermine the very concept of trust in digital interactions.
Why Identity Must Evolve
At the heart of the problem lies a simple fact: traditional methods of verifying identity are no longer enough. Passwords, one-time codes, or even facial recognition can be tricked by AI-generated forgeries.
The question every organisation must now ask is: Is this identity real, alive, and authorised — right now?
Building resilient identity systems requires more than static checks. Modern defences must include:
Malaysia's Digital Identity Journey
Malaysia's MyDigital ID initiative is an important step toward strengthening the country's identity infrastructure. But technology alone isn't enough. A strong digital identity ecosystem also needs:
Other countries provide valuable lessons. Estonia has successfully run a secure digital ID system for over two decades. India's Aadhaar blends biometrics with layered authentication. The European Union is building a pan-European digital identity wallet. In all cases, success relies on more than technology — public trust, regulation, and coordination are equally essential.
Malaysia can not only learn from these models but also lead in ASEAN by creating a system that is resilient, inclusive, and fraud-proof.
The Role of Businesses
While governments shape policy, the private sector cannot afford to wait. Every company today — whether issuing employee logins, onboarding customers, or granting supply chain access — is effectively an identity provider.
This means boards and executives must treat identity as a cybersecurity priority, not just an administrative process. Critical questions include:
Equally important is training. Employees can no longer simply be told to "stay vigilant." They need modern tools and clear protocols that help them recognise and respond to AI-powered deception.
Building a Secure Digital Future
Malaysia's digital economy is expanding rapidly — from digital banking to smart government and health tech. But with greater connectivity comes greater risk. Identity sits at the center of every login, every payment, and every exchange of trust.
The old identity model — static, password-based, siloed — cannot withstand the speed and sophistication of today's fraud. What's needed is a national and sector-wide commitment to building digital identity systems that are secure, adaptive, and rooted in privacy.
The fight against synthetic fraud isn't about fear. It's about investing in trust. Only by strengthening identity at the core of digital security can Malaysia — and the world — continue to grow safely in the age of AI.
