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Business / Thu, 11 Jun 2026 The New Indian Express

MHA warns against rising AI deepfake fraud targeting banks, fintechs

NEW DELHI: The Indian Cyber Crime Coordination Centre (I4C), operating under the Union Ministry of Home Affairs (MHA), has issued a fresh nationwide advisory warning citizens, banks and fintech companies about a surge in Artificial Intelligence (AI)-powered deepfake fraud targeting India’s digital financial systems. Officials in the I4C said fraudsters typically initiate contact through social media platforms, messaging apps, job portals, dating sites or direct phone calls. Victims may be persuaded to join video interactions during which natural facial movements - such as blinking, speaking, turning the head or focusing on the screen - are recorded without their knowledge of the intended misuse. These recordings are then processed using sophisticated AI software to generate realistic digital replicas capable of mimicking facial expressions, eye movements and even voice patterns. The resulting synthetic media can be deployed to bypass facial recognition and liveness verification systems, particularly where robust deepfake detection tools are not in place.

NEW DELHI: The Indian Cyber Crime Coordination Centre (I4C), operating under the Union Ministry of Home Affairs (MHA), has issued a fresh nationwide advisory warning citizens, banks and fintech companies about a surge in Artificial Intelligence (AI)-powered deepfake fraud targeting India’s digital financial systems.

In the advisory, which was issued on Wednesday, the authorities cautioned that cybercriminals are increasingly deploying advanced AI tools to create highly convincing deepfake videos and synthetic identities designed to defeat facial authentication, liveness detection, video-based Know Your Customer (KYC) checks and account recovery safeguards.

Officials in the I4C said fraudsters typically initiate contact through social media platforms, messaging apps, job portals, dating sites or direct phone calls. Victims may be persuaded to join video interactions during which natural facial movements - such as blinking, speaking, turning the head or focusing on the screen - are recorded without their knowledge of the intended misuse.

These recordings are then processed using sophisticated AI software to generate realistic digital replicas capable of mimicking facial expressions, eye movements and even voice patterns. The resulting synthetic media can be deployed to bypass facial recognition and liveness verification systems, particularly where robust deepfake detection tools are not in place.

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