🌐 The Deepfake Case of $6 Million + TD AML Debacle Continues

GM! This is The Risk Radar. Your frontline intelligence agent, bringing you the latest intel from the AML and cyber risk battlefront.

Deepfakes Gone Wild: The Case of the $6 Million Deepfake Robocall

Meet Kramer, who’s now staring down the barrel of a whopping $6 million fine from the FCC. And his partner-in-crime, Lingo Telecom, isn't getting off easy either—they’re looking at a cool $2 million penalty.

Why, you ask? Well, they decided to dabble in some digital deception right before the New Hampshire primary.

A Deepfake Debacle:

Here's the scoop: Kramer, perhaps inspired by his inner magician, paid a real magician $150 to whip up a deepfake robocall. The goal? To convince voters to skip the polls. But here's the twist—Kramer claims it was all to spotlight AI misuse in elections. Talk about a plot twist!

The Price of Illusion:

Now, Kramer’s little stunt has landed him in a heap of legal hot water. With 26 criminal charges for voter suppression and impersonating a candidate slapped against him in New Hampshire, it seems his trick has lost its charm.

TD Bank's AML Drama: A Shake-up in the Ranks! 🕵️‍♂️

TD Bank has just given the boot to more than a dozen of its employees. Why, you ask? Well, it seems these folks were a bit too lax in their anti-money laundering duties across the pond in the U.S., and some were even tangled up in criminal charges!

A Costly Oversight:

TD's CEO, Bharat Masrani, mentioned the serious slip-ups during their latest earnings call. It turns out that TD's U.S. branches became unintended playgrounds for money laundering activities linked to fentanyl sales.

Masrani acknowledged that TD failed to monitor, detect, report, and respond to suspicious activity.

A former branch employee even got charged for playing a little too fast and loose with the rules, accepting bribes to keep the money-laundering machine running.

DOJ on the Doorstep:

The DOJ is stepping into the spotlight and digging into allegations that Chinese drug lords funneled a mind-blowing $653 million through TD with some inside help.

Now, TD is playing ball with the DOJ and other regulators to untangle this messy web.

Cleaning House:

In response to these shenanigans, TD isn't just twiddling its thumbs. The bank swung the axe, sending more than a dozen employees packing, including some from its AML squad. Plus, they're pumping a hefty $500 million into beefing up their AML game and have set aside a cool $615 million to cover the costs of these investigations.

👀 I expect that will include ramping up their hiring of some new AML roles soon!