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.
The I4C warned that once authentication safeguards are breached, criminals can fraudulently complete KYC formalities, activate digital wallets, open new financial accounts, or gain unauthorised access to existing banking and digital service accounts. Such breaches pose a serious risk to India’s rapidly expanding digital payments ecosystem.
Describing AI-enabled identity fraud as an emerging and significant threat, the ministry urged financial institutions and fintech companies to immediately strengthen their customer onboarding and verification frameworks. Institutions have been advised to integrate advanced deepfake detection and synthetic media identification technologies into their security architecture.
The advisory also sets out precautionary measures for individuals. Citizens are encouraged to lock their biometric data wherever such options are available, closely monitor email and banking notifications for suspicious login attempts, and exercise caution during unsolicited video calls or online engagements.
In cases of suspected fraud or identity theft, victims have been asked to promptly file complaints on the National Cyber Crime Reporting Portal, sharing details such as the suspected fraudster’s contact information and any video links used in the scam. Authorities stressed that swift reporting is crucial to freezing funds before they are siphoned off through the banking system.
Additionally, users have been advised to immediately contact their telecom service providers if they experience sudden loss of mobile network connectivity, as this could signal a fraudulent SIM-swap attempt linked to financial crime.