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FRM Part II · FRM Exam Part II · The Financial Stability Implications of Artificial Intelligence

A treasury officer receives a video call that appears to show the CFO instructing an urgent large wire transfer to a new beneficiary. The voice and face look authentic, but the request bypasses normal approvals. Which control is most appropriate to address this AI-enabled threat?

Out-of-band verification combined with dual authorization for unusual payments is the best control. Deepfakes can imitate a senior executive's face and voice, so identity cannot rest on recognition alone; independent confirmation through a separate channel and a second approver restore control over the payment process.

  1. ARely on staff recognition of the CFO's voice and face as sufficient verification
  2. BRequire out-of-band verification and dual authorization for non-standard payments regardless of apparent requester identityCorrect
  3. CIncrease the daily transfer limit so urgent requests can be processed faster
  4. DDisable logging of payment instructions to reduce the data available to attackers

Explanation

Deepfakes undermine identity checks based on sight and sound, so process-based controls such as callback verification through a separate channel and dual authorization are needed. Relying on recognition is exactly what deepfakes defeat, and the other options increase exposure or reduce accountability.

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