Cybersecurity Awareness: Defending Against Deepfake Fraud

“You unlock this door with the key of imagination. Beyond it lies another dimension – a dimension of sound, sight, and thought.” For Rod Serling, The Twilight Zone was a world of science fiction, horror, and unsettling “what ifs” and stories that lived outside reality. Today, however, we face a very real challenge: deepfakes. These are computer-generated videos, images, and audio recordings that look and sound authentic but are intentionally designed to mislead. As this technology advances, the line between truth and fiction becomes harder to see, and what once belonged to science fiction is now part of our daily lives. For investors and retirees, this isn’t just a tech issue; it’s an emerging cybersecurity threat. Scammers are using deepfakes to impersonate trusted voices, distort information, and commit fraud with alarming precision. As October marks Cybersecurity Awareness Month, it’s a timely reminder that staying informed and vigilant is essential in today’s digital world.

Where might you encounter deepfakes? They can appear in many forms, sometimes from unfamiliar phone numbers or email addresses, and other times from hacked accounts that seem familiar. Social media is a common source, where scammers create fake profiles pretending to be someone you know or trust. Fraudsters can easily post misleading content on public forums and social platforms. Even more concerning, some criminals are now using technology that can mimic a person’s voice in real time during phone or video calls – making it seem like you’re speaking with a friend, family member, or trusted professional, when it’s actually a scam.

Deepfakes are being used to deceive, spread fear, cause harm, and steal identities. All that is needed to make a deepfake is usually a picture, and sample of someone’s voice. With many recordings of people now available in formats like podcasts and online videos, mimicking people with deepfakes is easy. With fake videos or voice recordings, scammers work to get stolen personal information or unauthorized access to accounts. Some deepfakes pretend to be trusted celebrities or politicians, spreading false messages that can influence public opinion. Young people are especially vulnerable, as deepfakes can be used to bully or embarrass them online. And for everyone, there’s a real risk to your reputation and credibility. If you’re fooled by a deepfake, or if someone creates one pretending to be you, it can cause serious damage.

Fraud is one of the biggest dangers posed by deepfakes, and it’s something we’re working hard to help our clients avoid. Scammers can use deepfakes to trick people into giving away personal information or access to their accounts. These fake videos or voice recordings can impersonate someone you trust, like a financial advisor, company representative, or even a friend. Some deepfakes show well-known public figures promoting fake investments, especially in cryptocurrency. Others are designed to pressure people into sending money through threats, blackmail, or emotional manipulation. In more serious cases, deepfakes have even been used to create false evidence for legal disputes or insurance claims.

Best Practices to Stay Safe from Deepfakes

• Stay alert and cautious, especially on social media: Deepfakes are becoming more convincing, so be mindful of friend requests from unfamiliar accounts and messages that seem out of character—even if they appear to come from someone you know.
• Avoid sharing personal information, photos, or videos publicly: Never give out sensitive details unless you’re absolutely sure who you’re talking to. Keeping a low profile reduces your risk of being targeted by deepfake scams.
• Educate others: For those in public-facing roles, avoiding exposure isn’t always practical, so help colleagues, clients, and loved ones understand the risks.
• Verify suspicious messages and use trusted methods to confirm identity: If you receive a call, email, video, or text that seems unusual—even if it appears to come from someone you know—pause and verify it through a trusted contact method. Always double-check any request involving financial transactions or account access. When in doubt, ask a question only the real person would know. Some experts also recommend setting up a shared code word with immediate family members to help confirm identity in urgent or unexpected situations.
• Watch out for urgency: Scammers often try to rush you. If a message feels sudden, emotional, or demanding, take a step back and think before acting.
• Avoid clicking links or scanning QR codes: Be cautious with emails, texts, or social media messages that contain unexpected links, codes, or attachments.
• Trust your instincts: If a video or audio message seems unbelievable or doesn’t feel right, it could be a deepfake. Don’t ignore that gut feeling.
• Talk to your JMG Advisor: Before making any financial decision involving cryptocurrency or some other investment, check in with your advisor to ensure it’s legitimate.

Being cautious with unexpected digital messages and staying informed about current scams are among your strongest defenses against fraud. As cyber threats continue to evolve, keeping up with the latest trends is both essential and achievable. Everyone has the opportunity to strengthen their cybersecurity awareness and protect their personal information. For more information on cybersecurity awareness, visit schwab.com/schwabsafe.

Important Disclosure

Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by JMG Financial Group Ltd. (“JMG”), or any non-investment related content, made reference to directly or indirectly in this writing will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this writing serves as the receipt of, or as a substitute for, personalized investment advice from JMG. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. JMG is neither a law firm, nor a certified public accounting firm, and no portion of the content provided in this writing should be construed as legal or accounting advice. A copy of JMG’s current written disclosure Brochure discussing our advisory services and fees is available upon request. If you are a JMG client, please remember to contact JMG, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. JMG shall continue to rely on the accuracy of information that you have provided.

To the extent provided in this writing, historical performance results for investment indices and/or categories have been provided for general comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results. It should not be assumed that your account holdings correspond directly to any comparative indices. Indices are not available for direct investment.