Deepfakes, Corporate Fraud and Securities Markets: Emerging Challenges for Corporate and Cyber Law

Abstract

The rapid advancement of artificial intelligence (AI), particularly generative AI and deepfake technologies, has created new dimensions of risk for corporate governance, financial integrity and securities markets. Deepfakes can manipulate audio, video, images and digital communications to impersonate corporate executives, fabricate announcements, distort market information and influence investor behaviour. Their increasing accessibility presents significant challenges for corporate and cyber law because conventional mechanisms of fraud detection, authentication, disclosure and liability may be inadequate to address technologically sophisticated deception. This
paper examines the emerging relationship between deepfakes, corporate fraud and securities-market misconduct, with particular emphasis on the legal and regulatory challenges arising from AI-generated misinformation.