GS3 – Science & Technology | GS3 – Internal Security
Context:
Deepfake scams targeting investments are rising in India, exploiting AI technology, regulatory gaps, and low digital literacy, causing citizens to lose lakhs of rupees.
Key Highlights
- Incident: A retired doctor in Hyderabad lost over ₹20 lakh after investing via a deepfake video of Finance Minister Nirmala Sitharaman on Instagram.
- Modus Operandi:
- AI-generated deepfake videos simulate trusted personalities.
- Fraudsters lure victims with promises of high returns.
- Victims only notice fraud when withdrawals are blocked.
- Regulatory Gaps:
- Lack of clear laws for digital and crypto scams.
- Social media platforms respond passively, relying on user complaints.
- Digital Literacy Issue: Low awareness amplifies susceptibility to online fraud.
Significance
- Policing Challenges: Scammers exploit vulnerabilities in the digital economy, combining tech sophistication with regulatory loopholes.
- Global Scale: Platforms struggle to manually review content; automated moderation often fails to detect deepfakes.
- Public Awareness: Current campaigns are too infrequent and generic to combat sophisticated scams.
- Classification Gap: Many countries, including India, lack clear definitions of digital investment scams, giving impunity to fraudsters.
Recommended Measures
- Regulatory Standards: Define clear rules for registration, disclosure, and cross-border cooperation.
- Technical Literacy: Continuous public education to improve digital and financial literacy.
- Proactive Platform Action: Require social media to actively remove fraudulent content, not just respond to complaints.
- Global Cooperation: Collaborate internationally to tackle cross-border digital frauds.