Centre issues advisory on AI-driven cyber fraud targeting financial systems

NEW DELHI, June 11: The Centre has issued an advisory warning of a growing threat from cybercriminals using artificial intelligence (AI) to bypass security systems and target financial infrastructure across the country.
The advisory, issued by the Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs, said fraudsters are increasingly deploying AI-powered tools to create realistic deepfake videos and synthetic identities to gain unauthorised access to financial and digital services.
According to the advisory, these technologies are being used to circumvent facial authentication systems, liveness verification checks, video KYC processes and account recovery mechanisms.
It noted that cybercriminals typically approach potential victims through social media platforms, job portals, dating applications or phone calls. During such interactions, they collect facial data by persuading individuals to perform simple actions such as blinking, turning their heads or speaking on camera.
The government has advised banks, financial institutions and fintech companies to strengthen deepfake detection capabilities and enhance customer onboarding and verification systems to counter emerging threats.
Citizens have also been urged to safeguard their biometric data, stay vigilant against suspicious login attempts and regularly monitor email and SMS alerts related to financial transactions.
The advisory further asked people to immediately report any suspicious financial activity through the national cybercrime reporting portal to help authorities take timely action. (Agencies)