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This summer, four of the biggest hedge funds on the planet got phone calls from people who said they weren't who they said.

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The voices were straight and nobody lost a dollar.

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Now, hold that thought.

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A couple in Michigan got one phone call from a voice

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that they trusted and it cost them sixty six thousand dollars.

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What's good, Internet? This is your boy Q. And welcome to the Blast Radius.

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His name is Quinn Vidal and Q is the alias.

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Podcast launch and we call it the Blast Radius.

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Every word perfect as applications in 86.

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Fingers gripping keys.

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Home row, stop taking risks.

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Listen and level up your business's development.

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Every episode, a new dose of your medicine.

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Technical physician better come and see the specialist.

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Nothing at all artificial about this intelligence.

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All right. The blast.

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Last month, CNN ran a story about a couple in West Michigan, Brian and Wendy.

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They were buying a condo. They spent weeks of back and forth with the lender. You know,

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normal stuff. The paperwork. They got a guy's name. They recognize his voice and they talked

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to him a bunch of times. Now, a few days before closing, an email comes in. It looks like that

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the lender. It has the right logo, right thread, everything, the tone, everything. And then the

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phone rings, and the number on the screen is the same lender's number, the one that they had talked

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to, the same phone, the same voice, the same guy, same cadence. He says, the closing funds need to

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go now. Here's where.

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So Brian wires $66,000.

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Closing morning, the title company calls. Hey,

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We're ready. Where's the money? The money's gone. It went days ago to somebody who was never

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the lender.

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So was this a deepfake?

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Here's where I need y'all to slow down with me because the part

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that everyone gets wrong and the purpose of this episode, CNN's headline said suspected voice

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cloning. Suspected. The people who said this was AI, that's a company called CertIFID. They do

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wire fraud prevention and they reviewed the case. They said the email looked authentic,

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the number matched, and the caller sounded like the mortgage professional Brian already had

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trusted. Now, I'm not saying that they're wrong. Spoofing a caller ID is a $10 trick and cloning

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a voice off a guy that's been leaving voicemails and posting mortgage rates videos for them 10

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years. Well, get to know how cheap that is. It's very plausible, but nobody proved it.

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And here's the thing. Sit with this. It doesn't matter because look at what actually happened.

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An email that looked right. A phone number that looked right. A voice that sounded right.

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Every signal a normal human taught to check passed. And then a wire went out days before

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closing on a phone call with nobody calling the lender back on the number they already had.

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That's not an AI story.

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That's there was no step story.

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The voice could have been a clone.

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The voice could have been a guy who's good at voices.

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Same $66,000 either way.

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Now, let me zoom out because this was a busy summer.

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August 5th, Bloomberg reports that a coordinated voice phishing campaign against Citadel,

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0.72, Two Sigma, Millennial, and a bunch of other private equity shops,

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Callers were pretending to be colleagues, pretending to be IT, trying to

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talk to employees into resetting passwords, handing over codes, opening the door.

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And I want you to notice who they called, not the CFO, the help desk, whoever resets passwords.

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That's the target. Now, a 12 person company has that exact same person.

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It's just Dave. And Dave is also the guy who fixes the printer.

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Two Sigma statement attempted.

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No indication of any impact.

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Point 72 told investors no client data taken.

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Citadel and Millennial, no comment.

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august 11 in spain police arrested a guy

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who had been beating a certificate authority's video

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id

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check you know the thing where you hold up your id to the camera with forged id cards he had a

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real-time face swap and I love this he used colored light bulbs from the hardware store to

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fake the hologram shine 38 attempts 30 stolen

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identities 320 phone lines he was getting real

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digital signature certificates in other people's names. You know, the thing where you sign contracts

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in an open account with.

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How'd he get caught?

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The face swap lagged for one second. His real face

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popped up on the verification camera like a Zoom call on a hotel Wi-Fi and a person at the issuer

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noticed.

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Hong Kong, same window.

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Police warn about 150 WhatsApp account hijackings in two weeks.

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In one of them, scammers took over a father's account and sent his son voice notes, an AI voice

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with his dad's sound. I need you to move money. It's urgent. Until the son has sent 10 million

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Hong Kong dollars, about 1.3 million US, his entire savings. Notice, not even a live call,

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video notes, the laziest deepfake in this episode and the most expensive. One more,

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because it's the one that's coming for your company specifically.

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July 31st, the State Department and the FBI plus 10 other governments,

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Japan, the UK, Canada, Australia, Germany, on down the list,

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put out a joint alert about a North Korean IT workers getting hired remotely

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by Western companies on stolen identities, fake resumes, AI published.

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a stand-in for the interview a laptop shipped to a laptop farm in the states so the login looks

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local the FBI's own number for AI involved employment scams last year was almost 13 million

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dollars and the FBI says the goal usually isn't

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the paycheck it's access to your network the scam

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doesn't want your money anymore it wants a job don't read the coverage on any of these here's

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the pattern. One, AI gets asserted by somebody selling the fix or by the reporter and almost

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never by the victim.

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Two Sigma never said AI. 0.

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72 never said AI.

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CNN said suspected. When a

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security company tells you a deepfake did it, ask who confirmed it. Two, they tell it like the deep

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fake did the work. It didn't. Michigan started with a spoofed email. Hong Kong started with a

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hijacked WhatsApp. The hedge fund started with a phone call to the help desk. The famous one in

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ARP Hong Kong 2024, the finance guy on the video call with a fake CFO and fake colleagues about

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$25 million.

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15 transfers that started with a phishing email.

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And the police said that the

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video on the call was pre-recorded. They told him to introduce himself, and then he just listened.

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Nobody faked a conversation.

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They faked a meeting.

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The deepfake didn't take $66,000.

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A phone call with no callback did.

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The deepfake is the last 10%.

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Somebody opened the door first.

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the voice just walked through it. Now, these are the numbers. Everyone's got a stat that ends in a

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percent. deepfakes are up 3000 percent, up 1200 percent. Go find the source. It's a vendor's own

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platform. Three years ago, no base number. Here's what the FBI actually counted. And this is the

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first year that they even counted it.

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Last year, just over a million complaints, $20. 9 billion

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reported lost.

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Of those, 22,000 mentioned AI, $893 million.

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And the FBI says most victims never

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realized that AI was involved. So that's the floor. But here's the number I want you to take

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home.

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$3 billion in business email compromised last year.

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$30 million of it, AI. The other $3

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billion didn't need it. That's the whole story. The scam that's actually emptying an account is

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the boring one. The fake invoice. The changed bank details. The urgent wire. AI is a garnish on it.

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A good garnish. But if you're building your defense around spotting the garnish, you're about

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to find out why that doesn't work.

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How far does this reach and what's changed?

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Three things change

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and I want to take them in order. What we know about people, what we know about the tech, and a

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rule that quietly landed in June that most of y'all are already breaking. I know the instinct.

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We'll do a training. We'll show everybody what a deepfake looks like. Here's the research. A meta

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analysis, 56 studies, 86,000 people, everything from

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photos to audio to video, humans correctly

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call a deepfake 55% of the time.

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The confidence interval crosses 50. That's a coin. And when they

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train people, show them examples, gave them feedback, gave them the AI help, accuracy went

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to about 65%.

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10 points is still a coin flip with their certificate.

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Audio is a little better than

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video. It's not good. And the tools to get better every quarter, your people are not going to have

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that training. So they don't. Okay. So we buy the software. Here's the problem with software.

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Detectors score in the high nineties on the generators they were trained on. Now show them

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generator they've never seen before. The next one, next month, they fall off a cliff on their

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percentages.

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Tens of points, some of them back to a coin flip.

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Nobody puts this video is AI light

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on Zoom or Teams or Meet. Zoom gets a verified human badge and beta that proves a person is

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there.

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Not that the video is real.

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Teams added a report button, meet, nothing.

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So here's where

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you're left with. And it's the best news in the episode. Every single one of these that got caught

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got caught the same way.

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Ferrari in 2024, the CEO's voice cloned, accent and all, calling an

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exec about a secret acquisition. The exec says, what's the book you recommended me last week?

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Click.

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Arup, 25 million out the door and got caught by a routine follow-up call with headquarters.

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Spain, a person at the issuer watching the feed saw a one-second glitch.

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WPP, the ad company,

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fake WhatsApp, fake Teams meeting, voice cloner, the CEO, the exec on the other end just

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got suspicious and stopped. Not a detector, not one of them. Every deepfake that got caught,

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got caught the same way.

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Somebody had a rule.

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Now here's the part I promise, the regulatory shift.

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And I checked this one hard because last episode I told y'all I was going to make claims about

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regulation I couldn't source. This one I can. First, the bad news. As of this recording,

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there is no law in this country that protects your business from somebody deep faking your CEO.

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Not federal, not Texas, not New York, not California. The federal law that passed last

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year called Take It Down is about intimate images. Real problem, not this problem. The one for voices

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and likeness, no fakes, is sitting on the Senate calendar with no vote. The FTC has a rule against

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impersonating a business. And since 2024, and that does give the FTC a stick that it doesn't

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give you a takedown. And the part that rule would cover impersonating a person,

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your CEO, it was proposed two and a half years ago, still not final. So nobody's coming. The

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rule has to be yours. And here's the thing. One of them already is. Since June 19th, if your

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business sends ACH payments, payroll through vendors, anything through bank rails, a rule

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from Nacha, the people who run the ACH network say you are required to have risk-based procedures

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to catch payments made under what they call false pretenses. And they define it,

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someone misrepresenting who they are, someone misrepresenting that they are allowed to act

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for someone else. Someone misrepresenting whose account the money's going to, they name it.

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Business email compromise, vendor impersonation, and payroll impersonation. That's this, the Michigan

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phone call. That's the fake vendor email, and it applies to every business that originates ACH,

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and they took the size threshold off in June. Now, most of y'all have never heard the word

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Nacha and your bank will not send you a memo. But the next time something goes wrong, we had

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no procedure is now a worse answer than it was in May. All right. It's that time for us to talk

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about what happened on the other side. You know, those stories that might have happened a few years

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back. I'm at this tech company, not going to name it. One morning, everybody gets pulled into a Zoom,

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all hands on deck. And if you've been in business a minute, you know that a hands on deck coming

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is usually never good news. Here's what they tell us. Earlier that same morning, there had been

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another Zoom scheduled call by one of the C-level executives, and the invite went to a few people

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in HR and finance. Not everybody, just the people who can move money. On that call, there's the

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exec on video, face, voice, the whole nine.

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And the ask is, we owe a customer refund, a real customer,

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one we actually do business with, and it needs to go out today, just to a different account.

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It looked right. It sounded right. But a couple of things were a little bit off.

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Sometimes you have that feeling, and this is what it was. And the folks on the call did the thing

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they were supposed to. They didn't argue with the face on the screen. They stopped and checked

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who they were actually talking to. Now, this didn't take long. It wasn't the exec. It was a

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deepfake. It was a setup to walk money right out the door and nothing went out the door. Zero

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dollars. So that second Zoom, the all hands on, that was the warning. That happened that morning.

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This is what it looks like. This is what's happened. And this is what you should do.

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And that's a place with a whole department for this. The small shop doesn't have the department,

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but the department was never the part that worked. The part that worked was a couple of people

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who felt something was off, and they were allowed to stop and check.

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Looking back at Michigan one more time, what was the one signal in the story that couldn't be fake?

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Not the email, spoofable. Not the caller ID, spoofable. Not the voice, clonable. For about

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six bucks a month and a minute or two of audio off the guy's own website. The one thing the

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scammer could not control was the number that Brian already had. If Brian hangs up and he dials

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that number back, the real lender picks up. The whole thing dies in about 15 seconds. So the

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defense can't be spot the fake. Same lesson as last episode, the message was perfect. The defense

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has to be a thing that holds even when the voice is perfect. It's a phone number. You already own

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it. The fix. Three things.

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First one's free and you can do it before lunch.

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Any new bank details,

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any change bank details, any urgent transfer, one rule on paper that everybody who touches money

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has to read.

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New bank details. Hang up.

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Call the number you already have, not the number in the

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email, not the number that just called you, the number on the file. And two people sign off on

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every change. Not because you don't trust your bookkeeper, because the scammer only needs one

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of you to be having a bad day, to be off, to not catch the signs. That's the FBI's advice.

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That's what the bank tells their own corporate clients. And as of June, written procedure,

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Nacha expects you to have. Three sources, one index card. This one's straight from the FBI.

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2024, word for word, create a secret word or phrase with your family to verify their identity.

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Do it at home tonight, then do it at work tomorrow. Anybody calling, anybody, me included,

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asking for money, access, who doesn't know the word is a stranger with your voice.

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one honest caveat because I don't sell fairy tales a code word beats a voice clone it does not beat

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a hijacked account if somebody's already inside dad's whatsapp they can read the word so the word

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is layer two the callback is layer one this is the episode two fix again and I'm going to keep

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saying until y'all do it the hedge fund callers wanted codes the help desk is the target because

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that help desk can reset the thing that protects everything else. Phishing-resistant login,

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pass keys where you can get them, text messages, codes off for anything that matters. If your IT

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person says that's hard, CISA, C-I-S-A, the federal cyber agency, publishes the exact checklist

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for Microsoft 365 and Google Workspace and a free script that grades your setup against it.

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free. It's on the link in the description. And if you're hiring remote, verify the school

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and the last job directly, not through the candidate. Get a face on a call and get somebody

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in a room if you can. And if the paycheck's going to a bank account that isn't in the person's name,

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stop. That's the State Department's list, not mine.

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Fix three is module three.

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Identity, passwords, MFA, and pass keys. It's live. It's free.

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There's a quiz.

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So fix one and fix two, the callback, the code word, the whole somebody had a rule thing.

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That's the social engineering module.

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And I'll be honest with you, it's not written yet. It's next.

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The community votes on what's written and on the top of the vote, a full lesson within

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side of a week.

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So if you want it, go vote for it.

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That's how this works.

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So that's the radius on this one.

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A voice that sounded right, a number that looked right, an email that looked right,

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and $66,000 because there was no step where any of it had to be checked.

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AI didn't beat the process.

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There was no process.

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You don't need a detector. You need a phone number that you already have and a rule that says you use it.

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And the next episode is coming to you this week on Thursday.

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We're talking about the robots. Open AI's own AI agents got out of their test lab and broke into another company.

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Sounds like a movie. Here's the part that isn't. They didn't invent a new way in.

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they used yours that's next. the lessons are in the community inside the Blast Radius on Skool

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the foundation's track is free the link's in the description come tell me your callback story

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somebody in there got caught one of these with a dumb question and I want to hear it

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is your boy Q everything has a Blast Radius just find out how far yours goes and remember

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pick a word. Peace.

