The unsettling narratives of individuals falling victim to AI-based deepfake scams, such as a Kerala man losing ₹40,000, a woman losing Rs 1.4 lakh to an AI voice scam, and a man being duped out of over Rs 5 crore by a scammer employing AI face-swapping technology, are just a glimpse into the broader challenge. In India, financial entities find themselves contending with an emerging and chilling risk – the proliferation of deepfakes.
These highly authentic fabrications, propelled by artificial intelligence, are emerging as a formidable tool for fraudsters, exploiting the vulnerabilities inherent in the digital financial landscape. While the creative potential of this technology is evident, its malevolent applications have already resulted in tangible real-world losses.
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Ghost fraud, involving the misuse of a deceased person’s data for financial gain, is another perilous facet. Exploiting a deceased individual’s identity, fraudsters gain unauthorised access to online services, manipulate savings, tamper with credit scores, and apply for credit cards, loans, or benefits. The spectre of deepfakes looms large in scenarios such as annuity/pension, insurance, or benefit fraud, where a deceased person can wrongfully claim benefits for an extended period.
A significant incident reported by Zerodha, a prominent stock market platform, revealed a close call where a customer narrowly escaped a potential loss of Rs 1.80 lakh due to a deepfake-related scam. The CEO, Nithin Kamath, highlighted the increasing prevalence of AI-powered applications generating deepfakes, contributing to the rise in fraudulent attacks.
These merely scratch the surface. Unreported incidents indicate a burgeoning trend of deepfake-assisted financial crimes, ranging from impersonating account holders for unauthorised withdrawals to manipulating transactions through voice scams, showcasing the rapid evolution of tactics employed by fraudsters.
A Call to Action:
Recognizing the imminent threat posed by deepfakes, the Indian financial sector must take decisive steps to safeguard against potential risks:
1. Technology and Awareness: Invest in AI-powered deepfake detection tools and conduct comprehensive awareness campaigns to educate employees and customers on recognizing and reporting such scams.
2. Multi-layered Security: Strengthen authentication methods beyond voice and video, incorporating robust biometric verification as a crucial firewall against deepfake threats.
3. Regulatory Framework: Establish clear guidelines and legal frameworks specific to deepfakes within the financial domain, essential for effective deterrence and prosecution of offenders.
4. Counter Measures: Implement digital trust and identity
verification tools, employ 3D and 4D liveness technology, review device hygiene, collaborate with identity providers, educate customers, and adopt legislative regulations and technology interventions.
By embracing these measures, financial institutions can not only protect against the threat of deepfakes but also maintain security, bolster stakeholder confidence, and navigate the evolving threat landscape effectively.
As the Indian financial industry undergoes digital transformation, it faces new challenges, with deepfakes emerging as a distinctive and potent threat. Proactive measures, encompassing robust cybersecurity strategies, cutting-edge technologies, and vigilant adherence to regulatory developments are imperative for banks and financial institutions to fortify their defences against the potential impacts of deepfakes, ensuring the resilience of their operations and the trust of their stakeholders.
(By Hariom Seth, Founder, Tagglabs. Views are personal)