Government warns banks and fintechs about new AI risks amidst soaring cybercrime and deepfake threats.

The finance and banking sectors have recently been exploring the advantages of artificial intelligence to enhance their services. However, they are now facing a looming threat in the form of deepfakes. This technology not only allows for the creation of fake photos and videos, but it is also being used to steal people’s identities. Tricksters are now using deepfakes to clone individuals’ voices and deceive their loved ones into divulging sensitive information or emptying their bank accounts. In response to this growing threat, the Indian government has issued a warning to banks and fintech companies, urging them to bolster their security measures against cybercrime in the coming months.

To understand the threat of deepfakes, you need to know what it is. These are AI-generated videos, images and audio that are edited or manipulated to clone a person’s identity, including voice.

The government is concerned about the deep counterfeiting risks of banks and fintech companies

According to a TOI report, the finance ministry has asked banks and fintech companies to be prepared for the emerging threat of deep counterfeiting during the stress test. Financial Services Secretary Vivek Joshi highlighted the emerging risks of cloning voices and personalities instead of deep fakes. Joshi said, “The government has taken critical steps to ensure that robust cyber security systems are put in place. Banks need to step it up a notch and include cyber risk assessment stress tests to measure the impact of cyber attacks.

In addition, Joshi added that banks and financial institutions must work to develop advanced cyber security tools and technology to secure critical and vulnerable information about organizations and their customers to avoid mistakes. Such important measures have already been implemented in Europe and Singapore. Moreover, he also talked about India’s growing economy and how it should remain stagnant in 2024.

Deepfake has been a constant threat to protect people from becoming victims of cybercrime due to advanced technology and clever tricks used by criminals to manipulate people. Cybersecurity systems should be able to analyze and detect potential risks before they arise as a result of unusual activity on an account.