Deepfake Scams Rise: RBI Issues Fresh Cybersecurity Advisory
The Reserve Bank of India (RBI) has issued a stringent cybersecurity advisory following a spate of deepfake-related fraud incidents across Tier-1 cities. Banks are now mandated to upgrade their biometric verification frameworks with enhanced liveness detection protocols by Q4 2025.
How Deepfakes Are Being Exploited
Several cases have emerged where fraudsters used AI-generated video and voice to impersonate customers during remote onboarding. In one instance, a deepfake video passed through a KYC gateway, resulting in the unauthorized transfer of ₹7.5 crore.
The Advisory: Key Directives
RBI’s circular, issued on June 1st, outlines the following requirements:
- Adoption of liveness detection for facial biometrics
- Mandatory multi-factor authentication (MFA) for all transactions above ₹50,000
- Third-party audit of biometric tech stacks every 6 months
Industry Impact
Banks are scrambling to comply. Fintechs, in particular, face integration challenges as many rely on outsourced KYC engines. “It’s a wake-up call,” says the CTO of a leading neobank. “We’re now investing in AI-detection layers to validate video KYC in real-time.”
The Policy Push
Sources within the Finance Ministry suggest a larger AI regulation framework is in the works, focused on ethical use, impersonation detection, and algorithmic transparency in financial services.
What This Means for Consumers
For everyday users, this may mean more frequent security checks and longer onboarding processes. However, it also adds a vital shield against identity theft and synthetic fraud — both on the rise in India’s digital economy.