Deepfakes and AI Fraud Risks for Internal Auditors

Jan 13, 2026

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The Institute of Internal Auditors Presents: All Things Internal Audit

Deepfakes are reshaping fraud, trust, and evidence, and challenging what organizations can rely on as "proof." In this episode, Andrew Guasp speaks with Corey Chadderton about how AI-generated media is being used to impersonate leadership and bypass controls, why the barriers to entry have collapsed, and what internal auditors must do to strengthen governance, training, and response as these risks accelerate into 2026.

HOST:Andrew Guasp, CIA, CFE Senior manager, Standards & Professional Guidance, The IIA

GUEST:Corey Chadderton, IAP Internal Auditor, Barbados Water Authority

KEY POINTS:

Introduction to Deepfakes and Audit Risk [00:00:02–00:00:40]
What Are Deepfakes and Why Auditors Must Pay Attention [00:00:40–00:02:40]
How Deepfake Technology Works (Without Becoming a Technical Expert) [00:02:50–00:04:10]
Deepfakes as a "Force Multiplier" for Fraud [00:04:20–00:06:22]
Real-World Deepfake Fraud and Governance Failures [00:06:24–00:08:36]
Reputational Risk, Content Monitoring, and Trust Breakdown [00:08:36–00:09:32]
Where Organizations Are Most Vulnerable Today [00:09:51–00:12:59]
Applying Cyber Testing Techniques to Deepfake Risk [00:13:10–00:13:55]
Red Flags and Indicators of Manipulated Media [00:14:04–00:16:10]
The Power of the Pause and Training Against Urgency Attacks [00:16:13–00:18:22]
Limits of Deepfake Detection Tools and the Human Factor [00:18:28–00:22:01]
Professional Skepticism Beyond the Audit Function [00:22:01–00:23:51]
Internal Audit's Advisory Role in Policies and Incident Response [00:24:02–00:27:14]
Staying Ahead Through Continuous Risk Assessment [00:27:23–00:30:04]
Closing Thoughts [00:30:04–00:30:19]

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