Centre warns of AI-driven cyber fraud threats targeting financial systems, issues advisory
The Centre has issued a fresh advisory warning financial institutions and citizens about the growing threat of artificial intelligence (AI)-powered cyber fraud targeting India's financial and digital infrastructure.
The advisory, issued by the Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs, highlights how cybercriminals are increasingly using advanced AI tools to bypass security measures and gain unauthorized access to financial services.
According to the advisory, fraudsters are leveraging technologies such as deepfake videos and synthetic identities to circumvent facial authentication systems, liveness detection checks, video-based Know Your Customer (KYC) verification processes, and account recovery mechanisms.
Authorities warned that cybercriminals often initiate contact through social media platforms, job portals, dating applications, messaging services, or phone calls. During these interactions, victims may be persuaded to share facial data by performing simple actions such as blinking, turning their heads, or speaking on camera.
The collected biometric information can then be used to generate realistic AI-powered deepfakes capable of impersonating individuals and bypassing digital verification systems.
In response to the emerging threat, the government has advised banks, financial institutions, fintech firms, and digital service providers to strengthen deepfake detection technologies, improve customer onboarding protocols, and enhance fraud monitoring systems.
The advisory also urges individuals to remain vigilant while sharing personal information online and to safeguard biometric data from unknown sources. Citizens have been advised to monitor email and SMS alerts related to financial transactions and account activity regularly.
Authorities further recommended that any suspicious financial activity or cyber fraud attempt be reported immediately through the national cybercrime reporting portal to enable swift action and investigation.
The latest warning comes amid rising global concerns over the misuse of artificial intelligence in cybercrime, identity theft, financial fraud, and digital impersonation schemes.