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ARTICLE · 15 JUNE 2023

AI Risk Matrix For Private Funds

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Numerous journalists have showcased their use of "deep-voice" and other Artificial Intelligence technologies to spoof electronic confirmation systems. Although these attempts...

United StatesTechnology
Akin Gump Strauss Hauer & Feld LLP
Akin Gump Strauss Hauer & Feld LLP
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Numerous journalists have showcased their use of "deep-voice" and other Artificial Intelligence technologies to spoof electronic confirmation systems. Although these attempts to bypass security, so far, have largely been confined to retail banking and credit cards, private fund managers should focus on this new arrow in the scammer's quiver.

All private fund managers, including managers that use third-party administrators to manage subscriptions, redemptions and investor information processes (e.g., wiring instructions), should assess their susceptibility to AI-fueled scams, such as combining a redemption or transfer request from a hacked or spoofed email account with a "live" verification by an AI-enabled voice or video impersonation tool.

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