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Deepfakes, Scams, and the AI Conundrum: Navigating Legal and Ethical Challenges 

 August 21, 2025

By  Jane Frankland

When you’re deeply entrenched in the world of thought leadership, your name, your voice, and your image spread across media interviews, conference stages, and every corner of the internet, the potential for your identity to be misused is more than a passing worry.

Thankfully, I haven’t yet had the unsettling experience of being confronted with a deepfake of myself. But I’d be naïve not to be concerned, and with reason. The past year alone has proven how easily even the most senior, recognizable leaders are targeted.

Take the recent case of an AI voice impersonating U.S. Senator Marco Rubio, contacting high-level officials (including foreign ministers and a state governor) through convincing, targeted calls. Or the breach of White House Chief of Staff Susie Wiles’ phone, which enabled an attacker to contact lawmakers and executives under her name, spurring investigations from the FBI and the White House.

The Hollywood world hasn’t been spared, either. Celebrity likenesses now fuel billion-dollar cryptocurrency and romance scams with Americans losing a staggering $672 million to them in 2024.

For leaders, founders, and anyone in the public eye, the spectre of deepfakes and AI-driven scams is a present, pressing challenge. But it doesn’t stop with us. Anyone, regardless of profile, is now vulnerable to impersonation, manipulation, and financial loss.

The compounding reality is that as these tools become more accessible, their reach grows broader, and the consequences for trust, reputation, and security become everyone’s problem. For C-levels managing risk, these evolving threats cut to the heart of what it means to protect not just your business, but your people and the core of your brand’s identity.

This is what I’m exploring in this blog. I’m approaching this through the lens of my role with OutThink, the Cybersecurity Human Risk Management platform I proudly represent as an advisor and brand ambassador.

Deepfakes and AI: The Story of Synthetic Media

Synthetic media began as a tool of aspiration, driven by legal, creative, and assistive goals. Early innovations transformed industries and empowered individuals in groundbreaking ways:

  • Film & Gaming: CGI and AI-driven voice cloning allowed filmmakers to de-age actors and game developers to create lifelike, dynamic characters.
  • Accessibility Tools: AI-generated speech revolutionized communication for people with disabilities, such as voice synthesis for ALS patients, opening new opportunities.
  • Marketing & Content Creation: Brands embraced AI-generated influencers like Lil Miquela, crafted hyper-targeted campaigns, and used digital assistants to boost engagement.
  • Translation & Localization: Advanced AI-enabled dubbing brought authentic voices to multilingual audiences, bridging cultural divides and expanding global reach.
  • Politics: Politicians adopted synthetic media to clone voices and images for multilingual speeches, campaign posters, and online voter interactions. In 2024, India used this technology on an unprecedented scale, digitally resurrecting long-deceased leaders to deliver “ghost endorsements” to over 900 million voters. While this innovation energized campaigns, it also raised concerns about consent, authenticity, and democratic integrity.

Initially, these advancements were guided by principles of transparency and consent, with a focus on business growth, creative exploration, and social good. However, as AI tools became more accessible through open-source projects and off-the-shelf solutions, malicious use cases emerged alongside legitimate ones:

  • Deepfake Pornography: A troubling issue, exploiting celebrity faces without consent.
  • Disinformation Campaigns: AI-generated news anchors and videos manipulated public opinion on elections, social issues, and more.
  • Fraud & Impersonation: Synthetic voices have been used in CEO scams, phishing schemes, and corporate espionage, with fake profiles and other deceptive tactics.

The Threat Landscape of Synthetic Media

As synthetic media evolves, its potential grows alongside the challenges of ensuring ethical use and safeguarding against harm. With trust in sensory information breaking down, we’re entering an era of cognitive overload, where people begin to question what they see, hear, and believe. Unfortunately, that doubt doesn’t make us safer. It makes us slower, more hesitant, less vigilant, and more vulnerable to psychological manipulation.

Defending identity in the AI age means rebuilding a culture of confident, informed scepticism- without spiralling into paranoia.

And this is where the conversation has shifted. Now it’s about how we can definitively differentiate between who is a real human and who is an AI-generated persona.

Enter World ID: A New Model for Digital Identity

Developed by Sam Altman’s Tools for Humanity, World ID is pioneering a model where proving humanness becomes the cornerstone of online trust. The concept hinges on the Orb, a polished chrome sphere that scans a user’s iris, converting that unique biometric data into an encrypted digital ID. With over 12 million users across 160 countries, and more than 26 million app downloads, it’s an enterprise-grade glimpse into the future of identity and access management (IAM).

The promise is both powerful and unsettling. World ID offers “proof of personhood” in a landscape swamped by bots, deepfakes, and AI-generated fraud. The digital ID it creates is designed to be stored securely and used to authenticate the real you, blocking out impersonators and malicious AI automation.

That’s a compelling draw for security leaders desperate to outpace AI-powered threats. Yet, the solution comes with significant questions. Biometric identifiers, like your iris pattern, are static and unchangeable: once compromised, they’re always vulnerable. If a system like World ID is ever breached, organizations face not just privacy losses, but the risk of permanent, widespread identity theft. Critics emphasize the risks around data centralization, governance, and the tension between “self-sovereign identity” and ceding control to a single provider. As Shady El Damaty of Holonym Foundation notes, true decentralization is about user empowerment and transparency, principles that World ID is still adapting to real-world scrutiny.

Further Legal Ramifications and Ethical Dilemmas

When it comes to synthetic media, the legal implications are vast, complex, and still evolving. At present, the lack of definitive laws creates significant challenges when dealing with the consequences of deepfake misuse, for example:

  • Accountability and Ownership

Who is liable when a malicious deepfake inflicts harm? Is it the person who created the fake content, the platform that hosted it, or the victim who unknowingly shared it? Clear legal accountability remains absent in most jurisdictions, leaving organizations in prolonged legal battles when breaches occur.

  • Privacy and Biometric Data

Many companies are exploring biometrics- such as voiceprints and facial recognition- as a safeguard against impersonation. While effective, these measures also bring significant privacy concerns. Laws like the GDPR and the Biometric Information Privacy Act (BIPA) aim to protect employees’ biometric data, but can companies legally require their workforce to participate?

It’s here that legality and ethics intersect. While an organization has a duty to protect itself, forcing employees to consent may lead to ethical lapses, erode trust within teams, and risk non-compliance with stringent laws. Striking the right balance is critical.

  • Gaps in Current Laws

Fraud and impersonation laws are outdated, rarely accounting for today’s AI-driven capabilities. These gaps are a key reason why scams continue unbridled. Legal reform must be a priority to safeguard businesses and the individuals who operate within them.

The Role of Technology in Combating Deepfakes

To address the digital identity crisis, several technologies are in motion:

  • World ID demonstrates the power and danger of biometric-driven digital verification. It's promising, but not without risks.
  • Passkeys represent a more privacy-preserving future. Endorsed by major tech companies, passkeys use cryptographic key pairs linked to a user’s device, eliminating traditional passwords and reducing the risk of phishing or credential theft. Unlike biometrics such as iris scans or facial recognition, passkeys don’t require the storage of sensitive, unchangeable identity markers, making them inherently less risky if breached.
  • Digital Identity Wallets, especially those being piloted in Europe, allow users to control and share verified identity attributes with apps and services. These systems align better with regulation like the GDPR and offer interoperability across borders and platforms.

Each method carries trade-offs:

  • Biometrics offer strong assurance but are permanently risky if compromised.
  • Digital wallets empower user control but demand careful governance.
  • Passkeys provide security and usability without compromising identity permanence.

But technology, while vital, is not a standalone solution. As deepfakes challenge static IAM systems what’s required is a holistic approach- one where human awareness, policy, and collaborative action work alongside technological advancements to protect people and brands in an era overloaded with synthetic threats.

That means:

  • Adaptive, risk based continuous authentication that validates presence, behavior and context instead of single-time identity checks.
  • Zero Trust frameworks that verify again and again, and evolve as threats mutate.
  • Collaborative standards like C2PA and public-private partnerships to drive provenance and policy.

Security of the Future for Deepfakes and Synthetic Media

The future hinges on how decisively we act today. C-suite leaders and decision-makers must prioritize trust- ensuring their brands, teams, and stakeholders feel secure in an era of unprecedented digital deception.

Education, awareness, and collaboration are non-negotiables. Partnering with innovative human risk management solutions, like OutThink, gives organizations the tools needed to counter these threats. Built on the principle of empowering people, OutThink equips teams to recognize risks and collectively safeguard their organization's reputation.

Deepfakes are here to stay. The question is whether we meet these challenges head-on or remain reactive, surrendering our agency to those who exploit innovation for harm. For leaders, the choice is clear. Responsibility, trust, and resilience start with us.

Now I Want to Hear from You

How do you think we can rebuild trust and safeguard authenticity in a world where synthetic media is becoming the norm? Meet me on LinkedIn and tell me in the comments. Let's get this conversation going!

To find out more about OutThink and find out how they are tackling deepfakes, scams and the AI conundrum with their Human Risk Management solutions, head over to https://outthink.io.

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Jane frankland

 

Jane Frankland MBE is an author, board advisor, and cybersecurity thought leader, working with top brands and governments. A trailblazer in the field, she founded a global hacking firm in the 90s and served as Managing Director at Accenture. Jane's contributions over two decades have been pivotal in launching key security initiatives such as CREST, Cyber Essentials and Women4Cyber. Renowned for her commitment to gender diversity, she authored the bestselling book "IN Security" and has provided $800,000 in scholarships to hundreds of women. Through her company KnewStart, and other initiatives she leads, she is committed to making the world safer, happier, and more prosperous.

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