On 19 November 2024, the Reserve Bank of India, the apex bank of India, issued a press release regarding the circulation of fake deepfake videos on social media featuring the RBI Governor. The central bank emphasised that these videos fraudulently attribute financial advice and investment endorsements to its senior leadership, posing a risk to public trust and security.
In its official statement, the Reserve Bank of India clarified that it has no involvement in or support for any such investment schemes or financial advice. The deceptive videos, created using advanced artificial intelligence tools, falsely claim endorsements from the Reserve Bank of India’s leadership to lure unsuspecting individuals into dubious schemes. The central bank urged the public to disregard such videos and refrain from making financial decisions based on them. This warning applies throughout India’s jurisdiction, including all its states and union territories, where the Reserve Bank of India holds regulatory authority.
The Rise of Deepfake Videos and Illicit Use of Artificial Intelligence
Deepfake technology, a product of advanced artificial intelligence, is increasingly being used for malicious purposes, including impersonation and fraud. By creating highly realistic videos that manipulate the likeness and voice of individuals, bad actors exploit the public’s trust in authoritative figures. This misuse is particularly concerning in jurisdictions like India, where a rapidly expanding digital population is vulnerable to cyber fraud. Globally, the misuse of deepfakes poses similar threats, with incidents reported in North America, Europe, and Asia, underscoring the transnational nature of this issue.
The lack of stringent legislation and penalties for the misuse of artificial intelligence in India and other jurisdictions has created an environment where perpetrators operate with impunity. India, like many nations, lacks comprehensive legal frameworks specifically addressing the creation and distribution of deepfake content. The country’s regulatory framework must incorporate strict penalties under laws such as the Indian Information Technology Act, 2000 and explore the integration of new, artificial intelligence-specific provisions.
Globally, other jurisdictions are setting an example in addressing this issue. The European Union, through its Artificial Intelligence Act, is moving towards regulating artificial intelligence misuse, while in the United States, individual states such as California and Texas have enacted laws against the non-consensual use of deepfake technology. India must adopt similar measures to close this legal gap. Without harmonised and enforceable laws, scammers will continue to exploit the technology across borders, eroding public trust and financial stability.
As scammers use deepfake technology to mimic credible authorities, the public must exercise caution. Verify the authenticity of financial advice through official Reserve Bank of India channels, such as its website or helpline. Avoid engaging with unsolicited investment schemes and report any suspicious activities to the appropriate authorities. With cyber threats evolving, vigilance and proactive measures, supported by stringent laws, are essential to safeguarding your financial well-being in India and across the globe.
(Source: https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR1537476468F86E1848F9BD55A9E2EA22EA5E.PDF, https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=59135)
