AI Scams Surge in India: ₹20,000 Crore Loss Feared by Year-End

India is facing a sharp rise in financial scams powered by artificial intelligence (AI), with projected losses expected to cross ₹20,000 crore by the end of 2025. Criminals are now using deepfake videos and fake endorsements by celebrities and government officials to trick people into investing in fraudulent schemes.

In one alarming case, scammers created a deepfake video of Finance Minister Nirmala Sitharaman promoting a fake cryptocurrency scheme. Another fake video featured Google CEO Sundar Pichai endorsing a bogus government investment platform. Thousands of people were misled and lost their money.

“These videos look and sound so real that people believe them instantly,” said Manish Mohta, founder of Learning Spiral AI. “Victims are often convinced that they are following genuine advice from trusted figures.”

A recent report by cybersecurity firm CloudSEK revealed that brand abuse now accounts for nearly one-third of all cybercrimes in India. The banking, retail, and government sectors are the worst affected. Pavan Karthick M, a threat researcher at CloudSEK, said, “The scale of these AI-powered scams is a clear warning. Financial institutions and regulators must take stronger steps.”

Authorities, banks, and tech experts are stepping up efforts to fight these scams. They are using AI tools to detect fraud, running awareness campaigns, and tightening regulations. But the fast-changing nature of these crimes makes them hard to control.

Experts say a united approach is needed. That means individuals, banks, government bodies, and tech companies must work together to stop this growing threat.

“People should be extra careful and always double-check any message or video, especially if it involves money,” warned Mohta. “Never trust investment tips from random messages or videos—even if they seem to come from well-known people.”

Anuj Khurana, CEO of Anaptyss, added that banks and fintech firms must use advanced AI systems to spot unusual patterns in transactions and messages. “Fraud detection methods must keep evolving, just like the scams themselves,” he said.

Venky Sadayappan, cybersecurity director at Arche, pointed out another challenge—deepfakes are often shared through trusted platforms like WhatsApp or Zoom, making them harder to detect.

As AI technology becomes more powerful, India’s fight against digital fraud must become smarter, faster, and more united to protect people and restore trust in the country’s digital economy.