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AI deepfakes emerging as new threat to financial systems, warns Centre

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New Delhi, June 11: The Ministry of Home Affairs has issued a fresh advisory warning about the growing misuse of Artificial Intelligence (AI) by cybercriminals to create highly convincing deepfake videos and synthetic identities aimed at compromising financial and digital ecosystems.

According to the advisory issued by the National Cybercrime Threat Analytics Unit (NCTAU) under the Indian Cyber Crime Coordination Centre (I4C) of the Home Ministry, cyber fraudsters are increasingly leveraging advanced AI tools to generate realistic digital impersonations capable of deceiving authentication systems.

“These technologies may be exploited to bypass facial authentication, liveness verification, Video-KYC, account recovery, and unauthorised access to financial and digital services. Fraudsters may attempt to gain unauthorised access to accounts by using facial recordings obtained through deceptive video calls, fake online job interviews or social engineering tactics,” the advisory read.

Elaborating on the pattern observed in such cybercrimes, the NCTAU outlined a multi-stage modus operandi employed by fraudsters. The process often begins with an initial approach through social media networks, messaging platforms, job portals, dating applications, or direct phone calls.

Once communication is established, attackers move to the next phase by gathering facial data. The advisory noted that facial information may already be available through publicly accessible online content. In many cases, however, victims are persuaded to perform specific facial actions such as looking directly at a screen, turning their heads, blinking repeatedly, or speaking on camera.

The collected recordings are then processed using AI-powered deepfake technologies. Through these tools, cybercriminals can create highly realistic digital replicas that mimic a person’s facial expressions, eye movements, gestures, and even their voice.

The advisory warned that if systems lack adequate deepfake detection capabilities, these fabricated identities may be used to bypass facial authentication and liveness verification checks.

Authorities further cautioned that the misuse of such AI-generated content could facilitate fraudulent Know Your Customer (KYC) verification processes. By successfully defeating identity verification safeguards adopted by financial institutions, fraudsters may be able to create, activate or operate financial accounts for illegal purposes.

To counter these evolving threats, the NCTAU has recommended several security measures for institutions as well as individuals. The advisory stated that customer onboarding systems, including those operated by fintech firms, should incorporate robust mechanisms capable of detecting deepfakes and other forms of synthetically generated content.

“Locking your biometric profile is the strongest defence against this type of remote identity theft,” the advisory stated.

In addition, individuals have been advised to closely monitor email notifications and alerts for any unauthorised login attempts or suspicious authentication activities that may indicate an attempt to misuse their identity.

The advisory emphasised that any signs of financial fraud or identity theft should be reported immediately. Citizens have been encouraged to document incidents through the National Cyber Crime Reporting Portal and provide relevant information, including the fraudster’s contact details and any video links involved in the scam.

The NCTAU also warned users to remain vigilant about sudden disruptions in mobile network services, noting that such incidents could indicate a fraudulent SIM swap attack.

Issuing a broader caution, the advisory clarified that it has been released to raise awareness about emerging AI-enabled identity fraud techniques. It added that references to identity verification systems and authentication processes are based on observed threat trends and “do not imply vulnerabilities or compromise of any specific organisation, platform, or service.”

Crime

Messi proposed visit row: Kerala BJP demands CBI probe into alleged financial irregularities

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Thiruvananthapuram, Aug 14: The Bharatiya Janata Party (BJP) on Friday demanded a Central Bureau of Investigation (CBI) probe into the alleged Messi event fraud linked to Reporter TV and its owners, even as the former Finance Minister and CPI-M leader K.N. Balagopal refused to answer questions on alleged GST dues connected with the visit of football superstar Lionel Messi to Kerala in 2025, which failed to take place.

State BJP General Secretary S. Suresh demanded that the V.D. Satheesan government hand over the investigation to the CBI, saying that the controversy had international dimensions involving Argentina, Embassies, apart from alleged financial irregularities.

He alleged that the state government’s name had been misused in the proposed Messi event and called for a comprehensive probe into the financial transactions involved.

He also demanded a criminal case into the alleged GST evasion and said those found responsible should face legal action, including arrest wherever warranted.

Suresh also alleged that serious charges had surfaced against the previous LDF government and sought a probe into allegations of political protection being extended to those involved.

He warned the Satheesan government against entering into any political understanding with former Chief Minister Pinarayi Vijayan to suppress or delay the investigation.

The BJP leader also claimed that the alleged intermediary (sponsor) in the Messi event faced around 19 cases, including cheating cases, and demanded that the entire financial and international dimensions of the controversy be examined by Central agencies.

Meanwhile, Balagopal, who served as the Kerala Finance Minister from 2021 to 2026 and now sits in the Opposition front row alongside Vijayan, faced questions on the alleged non-payment of GST linked to the principal sponsor of the Messi event.

Known for his sharp responses on public finance during his ministerial tenure, Balagopal offered little on Friday.

He said he did not have any papers on the matter and suggested that officials might know more.

The response was particularly notable given Balagopal’s repeated criticism of the Centre over Kerala’s finances and devolution of funds while he was the Finance Minister.

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Crime

Assam Police seize drugs valued at Rs 39.4 crore; two held

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Guwahati, Aug 14: Drugs worth an estimated Rs 39.4 crore were seized in Guwahati after police intercepted a truck near the Inter-State Bus Terminal (ISBT), leading to the arrest of two persons, Assam Chief Minister Himanta Biswa Sarma said.

Taking to his official X account on Thursday, Sarma praised the Guwahati Police for the operation and said the seizure would help protect the younger generation from the growing threat of drug abuse.

“Mirror mirror on the wall, tell me how much drugs in all? Rs 39.4 crore!” the Chief Minister said in his X post, while highlighting the quantity of narcotics recovered during the operation.

According to the Chief Minister, the police intercepted a truck near the ISBT and recovered 10 soap cases containing heroin along with 1,40,000 YABA tablets.

YABA tablets, which commonly contain methamphetamine, are a synthetic drug associated with serious health and addiction risks.

The seizure represents a significant disruption to an alleged narcotics trafficking network operating through Assam.

Two accused persons were apprehended in connection with the seizure.

Police are expected to investigate the source of the consignment, its intended destination and the wider network involved in transporting the drugs.

The operation comes amid intensified efforts by Assam Police to curb the trafficking and distribution of narcotics in the state.

Assam has emerged as an important transit route for drugs because of its geographical location and proximity to international borders and neighbouring states.

Sarma, in his X post, credited the Guwahati Police for the “excellent” operation and described the seizure as an effort aimed at “saving the future of our youth”.

The recovery of such a large quantity of YABA tablets and heroin is likely to trigger further investigation into the movement of narcotics through Guwahati, which serves as a major transportation hub connecting Assam with other parts of the Northeast.

The police action also underscores the increasing focus on intercepting drug consignments before they reach their intended markets and preventing narcotics from reaching young people.

Further details about the identities of the arrested persons and the exact value and weight of the seized substances are awaited.

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Crime

NIA arrests accused in VHP leader Vikas Prabhakar murder case

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New Delhi, Aug 14: The National Investigation Agency (NIA) on Friday arrested another accused in connection with the targeted killing of Vishwa Hindu Parishad (VHP) leader Vikas Prabhakar in Punjab’s Nangal town.

The accused, identified as Manveer Ram alias Ashu, was intercepted by immigration authorities at Sri Guru Ram Dass Jee International Airport in Amritsar on Thursday based on a Look Out Circular (LOC) issued by the NIA. He was subsequently taken into custody by the agency and is expected to be produced before the Special NIA Court for further legal proceedings.

The case, registered as RC-06/2024/NIA/DLI, pertains to the murder of Vikas Prabhakar, a local VHP leader who was shot dead in April 2024. The NIA assumed charge of the investigation on May 9, 2024, and has since filed a chargesheet along with two supplementary chargesheets.

According to the agency, investigations have revealed that the conspiracy to assassinate Prabhakar was orchestrated by Germany-based operatives of the banned terror outfit Babbar Khalsa International (BKI). The key conspirators have been identified as Harjit Singh alias Laddi and Kulbeer Singh alias Sidhu.

The NIA said Manveer Ram played an important role in the conspiracy by arranging firearms intended for use in the killing. Operating from the United Arab Emirates (UAE), he acted as a key intermediary between the foreign-based handlers and individuals involved in procuring weapons and coordinating activities in India.

Investigators have found that his role extended to facilitating communication between the overseas conspirators and their associates in India, thereby helping to execute the planned attack.

The agency is continuing its probe into the broader conspiracy and is examining the involvement of other individuals linked to the case.

Earlier in 2024, a 22-year-old arms supplier, Dharminder Kumar, was arrested by a joint team of the Delhi Police Special Cell and the NIA in connection with the murder. A resident of Ludhiana, Kumar was allegedly involved in arranging weapons for the accused.

During questioning, Kumar reportedly disclosed that after being released from jail in April 2024, he came into contact through social media with an individual based in a Middle Eastern country who instructed him to procure firearms.

Vikas Prabhakar, the president of the VHP’s Nangal unit, was shot dead by unidentified assailants at his confectionery shop in Punjab’s Nangal town on April 13, 2024.

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