In July 2025, cybercriminals executed a sophisticated scam resulting in a bank executive in India transferring ₹1.08 crore, believing he was communicating with his CEO via a flawless deepfake video call. This incident highlights the growing threat posed by artificial intelligence (AI), which is increasingly used by fraudsters to create realistic impersonations of trusted figures. The India Cyber Threat Report 2025 anticipates a dramatic rise in cyberattacks utilizing deepfake technology, particularly targeting the Banking, Financial Services, and Insurance (BFSI) sector.
Estimates suggest that financial fraud enabled by AI could result in losses surpassing ₹20,000 crore by the end of 2025. The evolution of these threats has made it easier for individuals with minimal technical skills to engage in cybercrime. For instance, in 2024, a fraudulent scheme in Hong Kong involved a deepfake impersonation of a Chief Financial Officer, leading to a loss of $25 million for the targeted company. In India, deepfake videos of public figures, including Finance Minister Nirmala Sitharaman and Google CEO Sundar Pichai, have been exploited to deceive investors.
Additionally, the rise of AI has transformed phishing attacks, now characterized by highly personalized emails that mimic legitimate communication styles. Reports indicate that phishing accounts for 38% of all reported fintech frauds in India, with attackers frequently posing as the Reserve Bank of India. The emergence of synthetic identity fraud, where entirely fictitious identities are created using AI, has surged by 450% since 2022, complicating detection efforts for cybersecurity experts.