India’s financial sector is facing a growing cybersecurity threat as cybercriminals increasingly use AI-powered deepfake technology to target banks, customers, and digital payment systems.
A recent report has warned that fake voices, manipulated videos, and synthetic digital identities are now being used to bypass traditional banking verification systems, creating serious risks for financial institutions and weakening trust in digital transactions.
Experts said attackers are using advanced AI tools to create highly realistic copies of human voices and facial expressions. These fake identities are being used to impersonate bank officials, relationship managers, and even customers to carry out financial fraud and manipulation.
The report noted a rise in cases involving fraudulent transaction approvals, account takeovers, and real-time payment fraud, putting pressure on banks’ fraud detection and security infrastructure.
Between October 2024 and September 2025, hundreds of millions of cyber detections were reportedly recorded, with hundreds of security alerts generated every minute. Many of these threats involved malware such as Trojans and file infectors, often linked to social engineering and identity-based scams.
Experts warned that traditional verification systems are no longer sufficient against modern AI-driven fraud. They recommended stronger security frameworks based on behavioural analytics, AI-powered anomaly detection, multi-layer authentication, and real-time transaction monitoring.
The report also highlighted that under the Digital Personal Data Protection Act, 2023, financial institutions are legally required to maintain secure processing and protection of personal data. However, deepfake-based attacks are creating new compliance risks, including financial losses, reputational damage, and possible regulatory penalties.
Cybersecurity specialists said deepfake technology has now become a key tool in large-scale social engineering attacks. Criminals often collect personal information from online leaks and digital sources before creating convincing fake identities to deceive victims.
India’s banking sector is already strengthening fraud detection and monitoring systems, but experts cautioned that without advanced real-time AI security infrastructure, countering deepfake fraud will remain difficult.
Experts also urged the public not to trust unknown calls, videos, or banking-related messages and to always verify information through official channels before taking action.
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