What Board Directors and Executive Teams Need to Know About Deepfakes And Narrative Attacks

Narrative attacks created by deepfakes and narrative attacks are designed to alter public perception, disrupt business operations, and erode trust in organizations, causing significant financial and reputational harm. The stakes are exceptionally high for Fortune 2000 companies because they are often at the forefront of innovation and industry leaders. As a result, they are prime targets for narrative attacks that can quickly spiral out of control. That’s why the World Economic Forum named misinformation and misinformation as the #1 global risk in 2024.

LEARN MORE: What Is Narrative Intelligence?

What are Narrative Attacks?

Narrative attacks are any false or misleading assertion that shapes perception about a person, place, or thing in the information ecosystem. While they can also happen organically, an agenda-driven actor or group often intentionally manipulates them.

Why Are They Dangerous?

When harmful narratives go viral, they place individuals, brands, governments, and other organizational types at high risk for significant reputational, financial, physical, and societal harm—the consequences of which can last indefinitely. Given the scale of the problem and the potential damage these attacks can cause, narrative attacks need to be a top concern for board directors and executive teams. Why?

• $78B is lost each year to private firms due to narrative attacks
• 88% of investors consider narrative attacks on corporations a severe issue
• 53% of US respondents: “CEOs & business leaders should do whatever they can to stop the spread of misinformation.”
• 25% of respondents thought business leaders were currently doing enough
• By 2028, enterprise spending on battling malinformation will surpass $30 billion, cannibalizing 10% of marketing and cybersecurity budgets to combat a multi-front threat* Gartner, Inc. June 2024 Over 100 Data, Analytics, and AI Predictions Through 2030

Board directors and executive teams should recognize that these strategically crafted campaigns designed to manipulate public perception pose a significant risk to their organization. These attacks can originate from external actors like cyber criminals, hyper agenda-driven threat actors, competitors, hacktivists, or state-sponsored entities, as well as internal vulnerabilities, leading to financial losses, reputational damage, and operational disruptions. To safeguard your organization, leaders must prioritize proactive narrative intelligence monitoring, develop strategic communications, and integrate cybersecurity measures, ensuring their organizations are prepared to detect, prevent, and respond to reduce organization risk caused by this new threat vector.

Narrative attacks often incorporate elements of all three, weaving together truth, half-truths, and outright falsehoods into a compelling narrative that can be difficult to counter.

LEARN MORE: Fighting Fiction with Facts: Your Quick Guide to Narrative Attacks

Why Are Narrative Attacks Relevant to Fortune 2000 Companies?

Large corporations are particularly vulnerable to narrative attacks for several reasons:

1. High visibility: Fortune 2000 companies are constant targets of threat actors to manipulate the media and attract harmful public attention. 
2. Brand cancellation: It is now a common practice for hyper-agenda-driven individuals or groups to target companies to manipulate stock prices or customer loyalty
3. Complex operations: The scale and complexity of these organizations make them susceptible to misunderstandings and misrepresentations.
4. Industry impact: Attacks on major corporations can have ripple effects throughout the economy and society.
5. Resource attraction: Large companies’ resources and influence make them attractive targets for various threat actors with diverse motivations.

The Threat Landscape

Types of Narrative Attacks

Narrative attacks can take various forms, each with its characteristics and challenges:

1. Deepfakes and synthetic media: Using AI-generated content to create false narratives or manipulate public perception.
2. Crisis exploitation: Leveraging actual events or crises to push harmful narratives about a company.
3. Smear campaigns: Coordinated efforts to tarnish a company’s reputation through negative publicity.
4. Astroturfing: Creating the illusion of grassroots support for or against a company or its initiatives.
6. Coordinated inauthentic behavior: Utilizing networks of fake accounts to amplify negative messages or drown out positive ones.

Sources of Narrative Attacks

Narrative attacks can originate from various sources, both external and internal:

External threats:

• Activist groups with ideological motivations
• State-sponsored actors pursuing geopolitical agendas
• Cybercriminals looking to extort or manipulate stock prices
• Competitors seeking to gain a market advantage

Internal vulnerabilities:

• Disgruntled employees or whistleblowers
• Inadvertent leaks due to poor information security practices
• Miscommunication or misalignment between departments

Understanding these potential sources is crucial for developing effective prevention and response strategies.

Impact on the Organization

Financial Consequences

The financial impact of a successful narrative attack can be severe and long-lasting. Potential consequences include:

• Loss of revenue: Consumer boycotts or reduced sales due to damaged reputation.
• Decreased market share: Competitors capitalizing on the company’s vulnerability.
• Stock price volatility: Investor panic leading to sharp declines in share value.
• Increased costs: Legal fees, PR campaigns, and operational changes to address the attack.
• Regulatory fines: Heightened scrutiny, leading to investigations and potential penalties.

Reputational Damage

The most significant and enduring impact of narrative attacks is damaging a company’s reputation. This can manifest in:

• Erosion of consumer trust and loyalty
• Difficulty in attracting and retaining top talent
• Strained relationships with suppliers and partners
• Increased skepticism from investors and analysts

Case studies of companies affected by narrative attacks reveal that reputational recovery can take years and require substantial resources.

Operational Disruption

Narrative attacks can also have a profound impact on a company’s day-to-day operations:

• Employee morale: Staff may become demoralized or uncertain about the company’s future.
• Productivity losses: Time and resources diverted to crisis management.
• Strategic initiatives derailed: Long-term projects may be put on hold or abandoned.
• Decision-making paralysis: Fear of further attacks may lead to overly cautious leadership.

Narrative Attack Detection and Prevention

Narrative Intelligence Monitoring and Protection

Identifying a narrative attack might seem daunting, given the sheer volume of online activity. However, there are key indicators that your organization might be a target. Signs of a potential narrative attack include:

• A sudden spike in negative or false stories about your organization 
• Inauthentic-looking activity driving these stories could be coordinated amplification across multiple platforms or accounts. 
• Manipulated or misleading content being shared (e.g., doctored images and video, out-of-context quotes, false context around pictures and videos) 
• Increased trolling or harassment targeting your organization or employees
• Actors co-opting your brand/initiative hashtags
• False imagery by bad actors

These signs are vital to watch after a trigger event, such as a cyber attack, natural disaster, geopolitical event, merger or acquisition, etc.

Monitoring for these signs requires a comprehensive and ongoing approach to narrative intelligence across the entire threat landscape. This goes beyond conventional places such as social media platforms and mainstream news outlets. Monitoring must also include niche websites, discussion forums, the Dark Web, and alternative news outlets. This is best accomplished with a trusted narrative intelligence partner.

As a board director or executive team member, can you answer the following questions?

• What are the most harmful narratives impacting my organization?
• Am I aware of the contagion effect of the narrative across networks?
• Who are the hyper-agenda-driven threat actors, cohorts, and communities behind the narratives?
• What is the bot-driven manipulation that scales them?

Knowing the answers to these questions is the first step to narrative intelligence and will serve as the cornerstone of your organization’s offense and defense strategies. 

LEARN MORE: Unlocking the Power of Narrative Intelligence

What is Narrative Intelligence?

We define narrative intelligence as visualizing, understanding, and interpreting the complex interplay of storylines, information networks, community dynamics, and influential actors that shape public perception and discourse around a specific person, place, or thing.

But knowing these basics is only step one. Narrative intelligence is also a defense strategy that enables organizations to uncover hidden risk signals as narrative attack campaigns scale and go viral. This early knowledge helps organizations make better-informed decisions to successfully combat narrative attacks and avoid their potentially significant (and potentially disastrous) impacts.  

The full scope of narrative intelligence consists of the following:

• Understanding and interpreting the full scope of the elements that shape public perception and discourse around specific topics, people, or organizations
• Examining the evolution and impact of these narratives
• Identifying patterns of information flow and connections between users
• Segmenting like-minded communities based on shared characteristics
• Detecting irregular or manipulated behavior 
• Measuring the engagement and influence of various actors in driving public opinion

Why is Narrative Intelligence Important?

In today’s world, we have a democratized communications landscape, easy access to advanced technology, including artificial intelligence (AI) tools, and political and ideological polarization – all of which make narrative attacks inevitable and more accessible than ever to execute.  We also live in a time of deep institutional distrust, especially those involving financial and government institutions. This increases the likelihood that audiences believe harmful narratives and creates urgency for organizations to monitor the threat landscape. 

Without narrative intelligence, organizations risk: 

• Blind spots in narrative monitoring
• Erosion of public trust
• Taking a reactive posture
• Difficulty prioritizing risks
• Financial or organizational impact 
• Their organization’s reputation being attacked or canceled

What are the Benefits of Narrative Intelligence?

Narrative intelligence, in short, provides leaders with deeper and more meaningful insight into how different online communities and cohorts engage with and respond to harmful narratives across networks, including social media, the dark web, the news, and more. It also helps leaders assess the reach and impact of influential or hyper-agenda-driven threat actors. This information allows communications, security, and government leaders to make better informed and effective decisions, especially during a crisis.

To optimize monitoring for and protecting against narrative attacks, organizations must have access to an AI-based narrative intelligence platform that can help them monitor, analyze, and respond to these threats at scale. 

The Board’s and Executive Team’s Role and Responsibilities

Oversight and Governance

Board directors and executive leaders play a crucial role in ensuring their organizations are prepared for and resilient against narrative attacks:

• Include narrative risk assessment in regular board and executive team discussions.
• Ensure management has adequate resources and expertise to address narrative threats.
• Review and approve crisis management and communication plans.
• Hold management accountable for implementing effective narrative risk management strategies.

Strategic Alignment

Boards and executive teams must ensure that narrative risk management is aligned with the overall corporate strategy:

• Integrate narrative considerations into strategic planning processes.
• Encourage a culture of transparency and ethical behavior throughout the organization.
• Set the tone at the top by prioritizing reputation management and stakeholder trust.

Case Studies and Lessons Learned

While specific company names are omitted, recent high-profile narrative attacks on Fortune 2000 companies offer valuable lessons:

1. Tech Giant Privacy Scandal: A major technology company faced backlash after narratives concerning data misuse, highlighting the importance of narrative awareness, transparent data practices, and proactive communication.
2. Automotive Recall Crisis: A car manufacturer’s slow response to safety concerns fueled narratives of corporate negligence, underscoring the need for rapid, honest communication in crises.
3. Financial Institution’s Ethical Dilemma: A large bank faced harmful narratives based on accusations of unethical practices, demonstrating the importance of aligning corporate culture with public messaging.

Key takeaways for board directors and executive teams to best protect their organization from narrative attacks include knowing the narratives:

• That impacts your organization/industry
• The Influence behind them
• The networks they infect
• The anomalous (bot) behavior that scales them
• The cohorts and communities that connect and amplify them 

To help you make better strategic decisions to reduce risk and the financial and reputational impact on your organization

As narrative attacks evolve in sophistication and impact, board directors and executive teams of Global 2000 companies must prioritize understanding and managing this critical risk. Organizations can protect their reputations, maintain stakeholder trust, and ensure long-term success in an increasingly complex information landscape by partnering with a narrative intelligence expert in the prevention, preparation, and response capabilities.

To learn more about how Blackbird.AI can help board directors and executives protect their organizations from narrative threats, contact us here.