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Are realtors too valuable to be disrupted by technology?

Tens of billions of venture capital dollars go into proptech every year. But realtors remain critical middlemen for most consumers. Is this just the way it will always be? Here’s a look at how tech is changing residential real estate – and how it’s not.

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The tech industry repeatedly sees itself as a disruptor — particularly of industries with inefficient models with unnecessary costs baked in.

Why shouldn’t real estate be a prime target for tech?

As Forbes notes:

“Real estate is the only mammoth-size market remaining in which middlemen (brokers/agents) have complete control of the process. The operative members of the transaction (buyers/sellers) are withheld from direct communication and limited in resources and transparency. They are at the mercy of the middlemen in a world where other industries are constantly being refreshed, redesigned, and automated.”

Still, Canadian (and American) realtors are, to date, disruption resistant. Canadian realtors extract billions in value every year for their work. This is just how real estate works in this country, but it is kind of odd. Especially because Canada’s housing crisis is exactly that: a crisis.

Canada needs to build 3.5 million extra homes by 2030 to ensure affordable housing for everyone living in the country. That’s on top of the expected build out of 2.3 million homes that are currently planned.

That’s a shocking number when you consider the United States, with ten times the population, is short a relatively modest 6.5 million homes.

This housing gap means some version of the following story is happening in Canada basically every single week:

A seller wants to put their home on the market. They sign with a realtor who shares data on how to price the property, photographs it, lists it on MLS and advertises it. Depending on the seller, the realtor may provide significant guidance on the process of selling a home. People tend to get nervous when they’re selling their single biggest asset.

Still, the whole process can be over in a matter of weeks — a win for sellers, presumably. Well, sort of.

This process can be efficient in a hot market, but it also leaves many sellers with an odd taste in their mouths as they watch their realtor and their buyer’s realtor walk away with commissions of thousands, if not tens of thousands, of their dollars.

So, why hasn’t tech made more headway in bleeding out these seemingly unnecessary costs for buyers and sellers?

It’s not for a lack of new models, innovation, and capital spending. Investors allocated more than $32 billion USD into proptech companies in 2021. (‘Proptech’ just means technology solutions that enable the buying and selling of residential and commercial real estate). By 2028, the global proptech market is expected to reach $64.3 billion USD.

The investment is there. But so are the realtors. So, what changes are happening?

Proptech platforms are creating more informed buyers and sellers

Consumers are seeing the results of the money that has poured into proptech over the last decade. During the home-buying frenzy that followed a certain pandemic, many buyers toured properties virtually, and made buying decisions without ever being inside the place they’d soon call home.

But that’s just the latest evolution of real estate technology for consumers. Much of the first wave of proptech has already become second nature for many of us. We all have access to powerful, data-driven tools and platforms to aid us when it’s time to buy or sell.

Just a few examples:

  • Zillow is a one-stop digital marketplace that serves home buyers and sellers, as well as renters and landlords. It goes well beyond MLS, with deep resources and functionality like property valuation estimates. It’s the largest real estate website in the U.S. with over 60 million monthly views – and it’s increasingly popular in Canada.
  • Redfin is a real estate brokerage that offers lower than standard brokerage fees for its agents to sell residential homes. The company operates in both Canada and the U.S.
  • Trulia is similar to Zillow but offers additional functionality like crime maps by area, neighborhood profiles, and estimated monthly property upkeep costs. Trulia was acquired by Zillow in 2014 but continues to run as a separate platform.
  • Bōde is a Canadian platform that enables sellers to list their properties for free. Then they market the listing on platforms like Zillow and MLS. When a buyer and seller connect, Bōde facilitates the sale of the home and charges a 1% fee (up to a maximum of $10,000) on the final sale price. No realtor is involved.

While consumers love platforms like these and are doing more research on their own, they still gravitate to realtors when it comes time to sell or buy. A recent CBC article noted that:

“While specific numbers are hard to come by, all indications suggest that private sales make up a tiny sliver of overall real estate deals in Canada. For example, For Sale By Owner recently had some 116 listings in all of Ontario, while some mid-sized cities in the province showed more than 1,000 on MLS.”

Change is coming for everyone – from buyers to sellers to realtors

Still, the forecasts suggest this initial wave of proptech innovation may lead to more significant changes in the years to come. 

A much-quoted Oxford University study from 2013 found that “automation is projected to replace 50% of all current jobs in the next two decades. The same study predicts automation is 86% likely to replace traditional “real estate sales agents” and 97% likely to replace “real estate brokers”.” By late 2020, technology had replaced over 60 million jobs in the U.S. alone, with the World Economic Forum predicting tens of millions more to come, with fully 50% of jobs done by machines by 2025. 

It’s clear that the rate of automation isn’t exactly slowing down.

Blockchain, the distributed ledger that promises to destroy unnecessary middlemen across industries, offers the potential ability to reduce the need for realtors, through its ability to protect against fraudulent activity through decentralized smart contracts. 

But widespread adoption of blockchain technology hasn’t happened in any major industry, much less a massive asset class like real estate. And blockchain alone doesn’t eliminate the need for home buyers and sellers to get expert counsel from someone during a transaction.

And AI has promise and potential, sure. It can already do things with data that no human can. But buyers and sellers seem to consistently value empathy, human interaction, negotiation skills, and a realtor’s personalized knowledge of a community or property type. This is especially true when someone is making the life-altering choice to buy or sell a house. If it was your house, would you want the robot or the person?

So far, most Canadians are choosing the person. (The same is even true with another major life purchase, as we’ve recently reported.)

But there are more changes afoot.

Think back to that theoretical seller that sees their house sold in days and in return sacrifices tens of thousands of dollars in commissions. Is that a good deal for them? Maybe not.

That insight is at the root of Bid My Listing, a new startup from entrepreneur Matt Proman and real estate bigwig Josh Altman.

Bid My Listing enables sellers to solicit bids from realtors to list their house. As Proman told Entrepreneur.com:

“I had a lot of agents knocking on my door, leaving their business cards that they wanted to represent me in the transaction.”

Proman thought his Long Island home would move quickly and signed a six-month exclusive listing agreement with an agent. “I waited and waited and waited,” he said. “And I watched two other houses sell on my block.”

“I said, ‘I will never, for any of my other houses, give my listing away for free. The next time the agents have to put their money where their mouth is and have skin in the game.

So, while realtors may exist long into Canada’s real estate future, tech may eventually create major changes in their roles and how they’re compensated. They’re likely to find themselves having to adapt to a changing landscape where buyers and sellers want more value for the commissions they pay on a real estate transaction.

If they’re willing to pay them at all.

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The county receiving the most Small Business Administration loans in each state

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Flippa identified the county in each state where applicants were approved for the most Small Business Administration loan funds per capita in 2023.
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The Small Business Administration backed loans worth $27.5 billion through its primary lending program in 2023—rising well above pre-COVID-19 pandemic levels as government officials aim to stabilize the economy.

Many small businesses get their start and scale up with SBA loans, which increased lending to Black, Latino, and women entrepreneurs in the past few years in step with efforts to become more equitable.

Flippa found the county within each state where applicants were approved for the most SBA loan funds per capita in fiscal year 2023, which ended in September. The analysis was based on the SBA’s most common loan program, known as 7(a) loans. States are listed in alphabetical order.

SBA’s 7(a) program provides extra security to lenders when they loan money to small businesses that might otherwise be considered too risky to grant. Loans can be for up to $5 million, but in 2023, nearly 7 in 10 loans were for amounts of $350,000 or less. Small businesses can use these funds for real estate acquisitions or improvements, working capital, supplies and equipment, and for other business startup or acquisition purposes.

Barriers do still exist for eligibility, including income, credit history, and location, but SBA loans can be fruitful for founders who don’t qualify for conventional business financing. They can also provide protection against high and volatile interest rates, as SBA-backed loans have maximum interest rates that are predictable and often lower than other loans.

All but two of the #1 ranked counties had populations of less than 500,000—most smaller than 100,000. That’s not surprising, as the Census Bureau classifies about 99% of U.S. counties as small. Still, it signifies that these smaller communities are building successful entrepreneurial environments. In most cases, their small businesses are able to succeed beyond those within the major U.S. population centers—at least in terms of success in gaining SBA funding.

Read on to see whether your county was among those receiving the most SBA loans.


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Alabama: Cleburne County

– SBA loan funds approved: $5.6 million (About $375 per resident)
– Number of loans: 5

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Alaska: Sitka Borough

– SBA loan funds approved: $6.1 million (About $716 per resident)
– Number of loans: 4

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Arizona: La Paz County

– SBA loan funds approved: $3.1 million (About $185 per resident)
– Number of loans: 1

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Arkansas: Lawrence County

– SBA loan funds approved: $8.5 million (About $524 per resident)
– Number of loans: 3

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California: Madera County

– SBA loan funds approved: $29.0 million (About $186 per resident)
– Number of loans: 16

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Colorado: Summit County

– SBA loan funds approved: $20.6 million (About $662 per resident)
– Number of loans: 23

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Connecticut: Hartford County

– SBA loan funds approved: $95.6 million (About $106 per resident)
– Number of loans: 212

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Delaware: New Castle County

– SBA loan funds approved: $49.8 million (About $88 per resident)
– Number of loans: 121

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Florida: Gilchrist County

– SBA loan funds approved: $5.6 million (About $317 per resident)
– Number of loans: 2

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Georgia: McIntosh County

– SBA loan funds approved: $10.0 million (About $888 per resident)
– Number of loans: 3

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Hawaii: Kauai County

– SBA loan funds approved: $4.1 million (About $56 per resident)
– Number of loans: 8

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Idaho: Shoshone County

– SBA loan funds approved: $4.8 million (About $365 per resident)
– Number of loans: 4

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Illinois: Logan County

– SBA loan funds approved: $8.2 million (About $291 per resident)
– Number of loans: 2

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Indiana: Bartholomew County

– SBA loan funds approved: $16.4 million (About $201 per resident)
– Number of loans: 10

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Iowa: Chickasaw County

– SBA loan funds approved: $2.5 million (About $207 per resident)
– Number of loans: 6

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Kansas: Gove County

– SBA loan funds approved: $2.0 million (About $721 per resident)
– Number of loans: 1

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Kentucky: Owen County

– SBA loan funds approved: $5.1 million (About $456 per resident)
– Number of loans: 2

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Louisiana: Claiborne Parish

– SBA loan funds approved: $6.0 million (About $412 per resident)
– Number of loans: 5

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Maine: Knox County

– SBA loan funds approved: $5.3 million (About $132 per resident)
– Number of loans: 19

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Maryland: Allegany County

– SBA loan funds approved: $6.5 million (About $95 per resident)
– Number of loans: 9

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Massachusetts: Nantucket County

– SBA loan funds approved: $3.3 million (About $240 per resident)
– Number of loans: 8

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Michigan: Keweenaw County

– SBA loan funds approved: $4.3 million (About $2,101 per resident)
– Number of loans: 5

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Minnesota: Marshall County

– SBA loan funds approved: $5.1 million (About $559 per resident)
– Number of loans: 4

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Mississippi: Smith County

– SBA loan funds approved: $7.3 million (About $506 per resident)
– Number of loans: 14

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Missouri: Pettis County

– SBA loan funds approved: $17.4 million (About $406 per resident)
– Number of loans: 9

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Montana: Sweet Grass County

– SBA loan funds approved: $4.8 million (About $1,312 per resident)
– Number of loans: 1

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Nebraska: Nuckolls County

– SBA loan funds approved: $2.2 million (About $521 per resident)
– Number of loans: 1

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Nevada: Carson City

– SBA loan funds approved: $13.3 million (About $229 per resident)
– Number of loans: 15

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New Hampshire: Rockingham County

– SBA loan funds approved: $35.3 million (About $113 per resident)
– Number of loans: 117

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New Jersey: Cape May County

– SBA loan funds approved: $26.7 million (About $280 per resident)
– Number of loans: 27

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New Mexico: Torrance County

– SBA loan funds approved: $4.2 million (About $280 per resident)
– Number of loans: 1

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New York: Essex County

– SBA loan funds approved: $11.5 million (About $306 per resident)
– Number of loans: 8

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North Carolina: Dare County

– SBA loan funds approved: $13.3 million (About $362 per resident)
– Number of loans: 8

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North Dakota: Oliver County

– SBA loan funds approved: $384,000 (About $208 per resident)
– Number of loans: 1

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Ohio: Putnam County

– SBA loan funds approved: $7.4 million (About $214 per resident)
– Number of loans: 10

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Oklahoma: Craig County

– SBA loan funds approved: $4.4 million (About $311 per resident)
– Number of loans: 2

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Oregon: Wasco County

– SBA loan funds approved: $6.1 million (About $229 per resident)
– Number of loans: 7

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Pennsylvania: Jefferson County

– SBA loan funds approved: $6.8 million (About $153 per resident)
– Number of loans: 8

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Rhode Island: Kent County

– SBA loan funds approved: $14.9 million (About $88 per resident)
– Number of loans: 39

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South Carolina: Jasper County

– SBA loan funds approved: $5.5 million (About $192 per resident)
– Number of loans: 5

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South Dakota: Deuel County

– SBA loan funds approved: $1.5 million (About $341 per resident)
– Number of loans: 1

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Tennessee: Decatur County

– SBA loan funds approved: $3.0 million (About $262 per resident)
– Number of loans: 2

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Texas: Menard County

– SBA loan funds approved: $1.5 million (About $745 per resident)
– Number of loans: 1

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Utah: Piute County

– SBA loan funds approved: $1.4 million (About $746 per resident)
– Number of loans: 1

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Vermont: Windham County

– SBA loan funds approved: $9.2 million (About $201 per resident)
– Number of loans: 15

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Virginia: Richmond County

– SBA loan funds approved: $6.9 million (About $777 per resident)
– Number of loans: 22

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Washington: Columbia County

– SBA loan funds approved: $1.3 million (About $331 per resident)
– Number of loans: 3

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West Virginia: Marshall County

– SBA loan funds approved: $5.3 million (About $172 per resident)
– Number of loans: 3

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Wisconsin: Vilas County

– SBA loan funds approved: $13.6 million (About $597 per resident)
– Number of loans: 8

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Wyoming: Sheridan County

– SBA loan funds approved: $13.9 million (About $451 per resident)
– Number of loans: 7

Story editing by Ashleigh Graf. Copy editing by Paris Close. Photo selection by Michael Flocker.

This story originally appeared on Flippa and was produced and
distributed in partnership with Stacker Studio.

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How has US wealth evolved since the 1980s?

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How do people allocate their wealth? The Wealth Enhancement Group analyzed data published by the Federal Reserve to answer this question.
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America’s economy has exploded since 1989.

Gross domestic product, which measures all of the goods and services produced in a year, grew from $9.9 trillion to $22.5 trillion from 1989 to 2023 (after accounting for inflation), according to the Bureau of Economic Analysis. This figure represents a massive increase in economic output.

This increased productivity has fed into a similarly significant increase in wealth. The Wealth Enhancement Group used data from the Federal Reserve to look at how the assets held by U.S. households has evolved over time.

Data shows that American households owned a combined $161 trillion in assets in the third quarter of 2023, up from $24 trillion in 1989. That makes for a roughly 570% increase, or 170% after adjusting for inflation.

After accounting for debt, such as mortgages, America’s total household net worth grew to $142 trillion, up from $20 trillion. Although the number is down by about 1% from its peak in the second quarter of 2022, it still reflects a dramatic increase over time.

The most valuable asset class the typical American family holds is real estate. Besides a significant drop during the 2000s subprime mortgage crisis and a brief dip following interest rate hikes in 2022, housing has been a reliable generator of wealth for the middle class.


Line chart showing the rise of household assets in the US between 1989 and 2023, which rose from $24 trillion to $161 trillion.

Wealth Enhancement Group

Household assets have skyrocketed since 1989

For Americans in the bottom half of the wealth distribution, housing made up 51% of their assets. Wealthier households, in contrast, tend to have higher shares of their savings in equities.

Households in the top 0.1% held 60% of their assets in shares of public and private companies in 2023. Meanwhile, households in the bottom half of wealth in the United States held only around 6% of assets in equities.

Yet, despite how much housing has grown in value, its ascent pales compared to the fastest-growing asset class: public equities.

Between 1989 and 2023, the value of public stocks held by American households grew by nearly 1,700%, rising from $2 trillion in value to $37 trillion. This trend, coupled with the fact that shares in companies are held disproportionately by the rich, has caused the share of American household assets held by the top 0.1% to increase from 8% to 12%.

A stacked bar chart showing the top 0.1% have most of their wealth in equities where housing makes up for 51% of the assets of people in the bottom half of wealth in the United States.

Wealth Enhancement Group

The wealthy tend to own shares in companies

Some economists argue that, in theory, the ratio of a country’s wealth to its economy, as measured by GDP, should be constant over time.

Yet, data from the Bureau of Economic Analysis and the Federal Reserve data shows that the ratio of the net worth of American households and nonprofit organizations to GDP rose from around 3.6 in the 1980s to 5.5 in the third quarter of 2023.

In 2022, YiLi Chien and Ashley Stewart, two researchers at the St. Louis Federal Reserve, offered a few theories to explain how this ratio has increased over time. They suggest that American companies might now have greater market power, allowing them to charge more. The authors also note that since the internet era, many of America’s biggest companies, such as Meta and Google, offer their services to consumers for free—while investors may value their economic contributions, they do not count for much in the GDP numbers.

However, assets are not net worth. The rich are more likely to own their homes outright. In the third quarter of 2023, households from the top 0.1% owned $1.83 trillion worth of real estate while owing just $70 billion in mortgages. In contrast, households in the bottom 50% of wealth owned $4.87 billion of real estate against $3 billion of housing debt.

Story editing by Ashleigh Graf. Copy editing by Kristen Wegrzyn.

This story originally appeared on Wealth Enhancement Group and was produced and
distributed in partnership with Stacker Studio.

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Deepfakes cause 30% of organizations to doubt biometrics, Gartner finds

A look at AI deepfakes, it’s impact on security, and ways to mitigate the risks

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A fake moustache and trenchcoat isn’t a convincing disguise, right? But a digitally altered video that makes your face identical to someone else’s? 

That’s a different story. 

Deepfakes are artificial images or videos that imitate a person’s likeness so convincingly that it can be nearly impossible to recognize they’re fake. Hackers use them to impersonate people’s faces and voices. This can have monumental impacts — even $25 million worth, which is what one undisclosed company lost in a deepfake scam. 

Even with all the money a company spends on voice authentication and facial biometrics, it can all be in vain if a deepfake hacker manages to fool them. 

Gartner explores the impact of deepfakes on organizational policy, and we’ll share some risk management considerations to address the trend. 

30% of organizations can’t rely on facial recognition software and biometrics

Biometrics rely on presentation attack detection (PAD) to assess a person’s identity and liveness. The problem now is that today’s PAD standards don’t protect against injection attacks from AI deepfakes. Once a bulletproof security strategy, biometrics are now inefficient for 30% of companies surveyed by Gartner. 

“These artificially generated images of real people’s faces, known as deepfakes, can be used by malicious actors to undermine biometric authentication or render it inefficient,” 

— Akif Khan, VP Analyst at Gartner 

The solution is a demand for more innovative cybersecurity tech. Gartner advises organizations to update their minimum requirements from cybersecurity members to include all of the following 

  • PAD
  • Injected attacks detection (IAD)
  • Image inspection

On top of that, you can beef up security with: 

  • Device identification: Numerical values or codes to identify a user’s device
  • Behavioural analytics: Machine learning algorithms to detect any shifts in day-to-day online behaviour

So, how can you account for deepfakes risks and mitigation in practice? Here are a few more tips to consider: 

  • Educate employees: Hold monthly or quarterly meetings with experts in the field to help your employee identify common signs of deepfakes, including blurred or pixelated images in a person’s video, or distorted audio. Greater awareness of what to look out for can allow employees to flag suspicions. 
  • Don’t rely on one authentication process: Multi-factor authentication demands 2+ pieces of evidence to verify a user before admitting them into a network. Include email, phone, or voice verification in addition to biometrics. 
  • Invest in deepfake detection software: Consider a subscription Sensity AI, Deepware Scan, Truepic, or Microsoft Video Authenticator. 

Gartner plans to share more findings and research on deepfakes at their security and risk management summits taking place in various countries around the world. 

Read more about those summits and see the news release here.

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