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In December, legislators released a draft version of a new Personal Information Protection Law that would introduce much stronger fines for violators. Having said that, the Chinese government is aware of the problem, and is starting to take steps to create a stronger data security environment.
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In doing so, they tricked the tax invoice system into accepting the premade deepfake videos, which were good enough to beat the liveness detection check even though no one was standing in front of the camera. They then used a special phone (available for only 1,650 yuan) to hijack the mobile camera typically used to perform facial recognition checks. In this particular case, the fraudsters used a basic app to manipulate the images and create deepfake videos that made it seem as if the faces were blinking, nodding, or opening their mouths. The result is that high-quality facial images are readily available to cybercriminals. Some databases do not have any form of encryption, and those that do are often not strong enough to prevent data breaches. The technology is used throughout the country in numerous commercial and surveillance applications, but China’s data protection laws have lagged far behind the pace of technological innovation. However, the incident still highlights the many gaps in China’s facial recognition system. The fraudsters (surnames Wu and Zhou) started their operation in 2018, and have since been captured and prosecuted in Shanghai.