THE DEEPFAKES ARE WINNING: RESEARCHERS PROVE AI WATERMARKS ARE BREAKABLE

Despite best efforts, AI watermarking solutions are still no match for deepfakes.

TL;DR: The implications of deepfakes are far-reaching, from fraud to political misinformation. Researchers are developing clever methods to flag AI-generated content, but those techniques may not provide the level of protection promised. Some regulations, like the European Union’s AI Act, include new transparency requirements for AI-generated content, but international coordination has yet to fully take hold.

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The Race for AI Safety is On

As GenAI videos emerge from the uncanny valley, researchers are developing clever methods to flag AI-generated content. Meanwhile, AI's capabilities are rapidly expanding, making the mitigation of that deepfake content all the more crucial.

This is high-stakes work.

The implications of deepfakes range from fraud and online harassment to the dissemination of political misinformation. In 2025, researchers found that one highly touted solution, AI watermarking, may not provide the level of protection that was promised.

Exposing AI Watermark Weaknesses

Researchers at the University of Waterloo’s Cybersecurity and Privacy Institute developed an 'UnMarker' tool that erases invisible AI watermarks, even without knowing that watermarks are there.

Their breakthrough means that, regardless of how carefully encoded, today’s watermarks can be systematically removed, reducing our ability to identify harmful content.

“People want a way to verify what’s real and what’s not because the damages will be huge if we can’t. From political smear campaigns to non-consensual pornography, this technology could have terrible and wide-reaching consequences.”

— Andre Kassis, PhD Candidate, Computer Science

Why It Matters: AI Deepfakes Ruin Lives & Disrupt Society

The dangers of deepfakes go far beyond meme-worthy celebrity images. Harassment via deepfakes can destroy lives. And scams can amount to billions.

In 2023 alone, global deepfake-related scams cost businesses an estimated $250 million, and North America experienced a 1740% increase in deepfake fraud incidents compared to the previous year.

The problems don’t stop there.

Fake videos and images can eventually erode public trust in elections, courts, journalism, and even personal relationships.

A KPMG survey found that 83% of respondents were concerned about the spread of misinformation, with many expressing doubts about their ability to distinguish between real and fake content.

For businesses, that worry is also growing. In 2024, KPMG found that 91% of business leaders were worried that bad actors would use deepfakes to run misinformation/disinformation campaigns.

Watermarking: A Single Solution With Glaring Limits

Leading tech companies have pointed to digital watermarks as a valuable tool to combat deepfakes. Watermarks are subtle or invisible signatures embedded in AI-generated videos and imagery. They help identify synthetic content, regardless of cropping or editing, and can be detected with the right tools.

However, as the research shows, these digital fingerprints are not as powerful as we've been led to believe.

Using statistical analysis of image patterns, the researcher team's 'UnMarker' tool successfully stripped watermarks from leading models like Google’s SynthID and Meta’s Stable Signature in more than half of attempts.

“If we can figure this out, so can malicious actors. Watermarking is being promoted as this perfect solution, but we’ve shown that this technology is breakable. Deepfakes are still a huge threat."

— Andre Kassis, PhD Candidate, Computer Science

Global Perspectives: Deepfake Detection & Discussion

Globally, efforts to combat deepfakes are also gaining momentum.

Although the European Union’s AI Act includes new transparency requirements for AI-generated content, international coordination on standards and tools has yet to fully take hold.

“While watermarking schemes are typically kept secret by AI companies, they must satisfy two essential properties: they need to be invisible to human users to preserve image quality, and... resistant to manipulation of an image like cropping or reducing resolution.”

— Dr. Urs Hengartner

The Way Forward: Guardrails, Awareness, and Public Trust

As the race between AI scientists and bad actors intensifies, research teams share similar messages, calling for coordinated, holistic, and human-first approaches.

A suite of multi-layered solutions could provide an answer:

• Standardized Tools: Because technical fixes can be bypassed, researchers are calling for coordinated, transparent standards and independent verification.

• Education: As many as 78% of Canadians say they want more education on how to spot and report deepfakes, a trend that's echoed globally.

• Legal Safeguards: Legal frameworks are also racing to keep pace with technological progress, so global cooperation and enforcement may be key here as well.

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