#FactCheck - AI Manipulated image showing Anant Ambani and Radhika Merchant dressed in golden outfits.

Introduction
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Generative AI, particularly deepfake technology, poses significant risks to security in the financial sector. Deepfake technology can convincingly mimic voices, create lip-sync videos, execute face swaps, and carry out other types of impersonation through tools like DALL-E, Midjourney, Respeecher, Murf, etc, which are now widely accessible and have been misused for fraud. For example, in 2024, cybercriminals in Hong Kong used deepfake technology to impersonate the Chief Financial Officer of a company, defrauding it of $25 million. Surveys, including Regula’s Deepfake Trends 2024 and Sumsub reports, highlight financial services as the most targeted sector for deepfake-induced fraud.

Deepfake Technology and Its Risks to Financial Systems

India’s financial ecosystem, including banks, NBFCs, and fintech companies, is leveraging technology to enhance access to credit for households and MSMEs. The country is a leader in global real-time payments and its digital economy comprises 10% of its GDP.  However, it faces unique cybersecurity challenges. According to the RBI’s 2023-24 Currency and Finance report, banks cite cybersecurity threats, legacy systems, and low customer digital literacy as major hurdles in digital adoption. Deepfake technology intensifies risks like:

• Social Engineering Attacks: Information security breaches through phishing, vishing, etc. become more convincing with deepfake imagery and audio.
• Bypassing Authentication Protocols: Deepfake audio or images may circumvent voice and image-based authentication systems, exposing sensitive data.
• Market Manipulation: Misleading deepfake content making false claims and endorsements can harm investor trust and damage stock market performance.
• Business Email Compromise Scams: Deepfake audio can mimic the voice of a real person with authority in the organization to falsely authorize payments.
• Evolving Deception Techniques: The usage of AI will allow cybercriminals to deploy malware that can adapt in real-time to carry out phishing attacks and inundate targets with increased speed and variations. Legacy security frameworks are not suited to countering automated attacks at such a scale.

Existing Frameworks and Gaps

In 2016, the RBI introduced cybersecurity guidelines for banks, neo-banking, lending, and non-banking financial institutions, focusing on resilience measures like Board-level policies, baseline security standards, data leak prevention, running penetration tests, and mandating Cybersecurity Operations Centres (C-SOCs). It also mandated incident reporting to the RBI for cyber events. Similarly, SEBI’s Cybersecurity and Cyber Resilience Framework (CSCRF) applies to regulated entities (REs) like stock brokers, mutual funds, KYC agencies, etc., requiring policies, risk management frameworks, and third-party assessments of cyber resilience measures. While both frameworks are comprehensive, they require updates addressing emerging threats from generative AI-driven cyber fraud.

Cyberpeace Recommendations 

• AI Cybersecurity to Counter AI Cybercrime: AI-generated attacks can be designed to overwhelm with their speed and scale. Cybercriminals increasingly exploit platforms like LinkedIn, Microsoft Teams, and Messenger, to target people.  More and more organizations of all sizes will have to use AI-based cybersecurity for detection and response since generative AI is becoming increasingly essential in combating hackers and breaches.
• Enhancing Multi-factor Authentication (MFA):  With improving image and voice-generation/manipulation technologies, enhanced authentication measures such as token-based authentication or other hardware-based measures, abnormal behaviour detection, multi-device push notifications, geolocation verifications, etc. can be used to improve prevention strategies.  New targeted technological solutions for content-driven authentication can also be implemented.
• Addressing Third-Party Vulnerabilities: Financial institutions often outsource operations to vendors that may not follow the same cybersecurity protocols, which can introduce vulnerabilities. Ensuring all parties follow standardized protocols can address these gaps.
• Protecting Senior Professionals: Senior-level and high-profile individuals at organizations are at a greater risk of being imitated or impersonated since they hold higher authority over decision-making and have greater access  to sensitive information. Protecting their identity metrics through technological interventions is of utmost importance.
• Advanced Employee Training:  To build organizational resilience, employees must be trained to understand how generative and emerging technologies work. A well-trained workforce can significantly lower the likelihood of successful human-focused human-focused cyberattacks like phishing and impersonation.
• Financial Support to Smaller Institutions: Smaller institutions may not have the resources to invest in robust long-term cybersecurity solutions and upgrades. They require financial and technological support from the government to meet requisite standards.

Conclusion

According to The India Cyber Threat Report 2025 by the Data Security Council of India (DSCI) and Seqrite, deepfake-enabled cyberattacks, especially in the finance and healthcare sectors, are set to increase in 2025. This has the potential to disrupt services, steal sensitive data, and exploit geopolitical tensions, presenting a significant risk to the critical infrastructure of India. 

As the threat landscape changes,  institutions will have to continue to embrace AI and Machine Learning (ML) for threat detection and response. The financial sector must prioritize robust cybersecurity strategies, participate in regulation-framing procedures, adopt AI-based solutions, and enhance workforce training, to safeguard against AI-enabled fraud. Collaborative efforts among policymakers, financial institutions, and technology providers will be essential to strengthen defenses.

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Sources 

• https://sumsub.com/newsroom/deepfake-cases-surge-in-countries-holding-2024-elections-sumsub-research-shows/ 
• https://www.globenewswire.com/news-release/2024/10/31/2972565/0/en/Deepfake-Fraud-Costs-the-Financial-Sector-an-Average-of-600-000-for-Each-Company-Regula-s-Survey-Shows.html 
• https://www.sipa.columbia.edu/sites/default/files/2023-05/For%20Publication_BOfA_PollardCartier.pdf 
• https://edition.cnn.com/2024/02/04/asia/deepfake-cfo-scam-hong-kong-intl-hnk/index.html 
• https://www.rbi.org.in/Commonman/English/scripts/Notification.aspx?Id=1721 
• https://elplaw.in/leadership/cybersecurity-and-cyber-resilience-framework-for-sebi-regulated-entities/ 
• https://economictimes.indiatimes.com/tech/artificial-intelligence/ai-driven-deepfake-enabled-cyberattacks-to-rise-in-2025-healthcarefinance-sectors-at-risk-report/articleshow/115976846.cms?from=mdr 

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Introduction:

Cybercriminals can hack your phone using or exploiting some public charging stations such as at airports, Malls, hotel rooms, etc. When you plug in your phone or laptop devices into a power charger using USB, you may be plugging into a hacker. Juice jacking poses a security threat at public charging stations at airports, shopping malls and other public places that provide free charging stations for mobile, tablet, and laptop devices. 

Cybercriminals can either hack into the public charging spot or download malware or viruses through the USB port into your system. When you plug your phone, laptop, tablet or other such devices for charging at public charging stations, it can download malware to your phone and other such devices, and then hackers can access your personal information or passwords, It is really a problem since hackers can even get access to your bank account for unauthorised transactions by accessing your passwords and personal information. 

Hence it is important to think twice before using public charging spots, as it might lead to serious consequences such as malware, data leak and hacking. Hacking can gain unauthorised access to your personal information by installing malware in your device and they might monitor your device by installing monitor software or spyware to your device. This scam is referred to as juice jacking. 

FBI issued an advisory  warning about using public charging stations:

The Federal Bureau of Investigation (FBI), In May 2023, advised users to avoid using free charging stations in airports, hotels, or shopping centres. The warning comes as threat actors have figured out ways to inject malware into devices attached to publicly installed USB ports.

Updated Security measures:

We all must have seen public charging points such as airports, shopping malls, metro, and other public places that provide charging stations for mobile devices. But it can be a threat to your stored data on your device. During the charging process, your data can be transferred which can ultimately lead to a data breach. Hence utmost care should be taken to protect your information and data. iPhones and other devices have security measures in place, When you plug your phone into a charging power source, a pop-up appears to ask permission to allow or disallow the transfer of Data. There is also a default setting in the phones where data transfer is disabled. In the latest models, when you plug your device into a new port or a computer, a pop-up appears asking whether the device is trusted or not. 

Two major risks involved in the threat of Juice jacking: 

1. Malware installation: – Malware apps can be used by bad actors to clone your phone data to their device, Your personal data is transferred leading to a data breach. Some types of malware include Trojans, adware, spyware, crypto-miners, etc. Once this malware is injected into your device, It is easy for cybercriminals to extort a ransom to restore the information they have unauthorized access to.
2. Data Theft: It is important to give emphasis to the question of whether your data is protected at public charging stations? When we use a USB cable and connect to a public charging station port, cyber-criminals by injecting malware into the charging port system, can inject the malware into your device or your data can be transferred to the bad actors. USB cords can be exploited by cybercriminals to commit malicious activities.

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Best practices: 

• Avoid using public charging stations: Using public charging stations is not safe. It is very possible for a cybercriminal to load malware into a charging station with a USB cord. Hence It is advisable not to use public charging spots, try to make sure you charge your phone, and laptop devices in your car, at home or office so it will help you to avoid public charging stations.
• Alternative method of charging: You can carry a power bank along with you to avoid the use of public charging stations.
• Lock your phone: Lock your phone once connected to the charging port. Locking your device once connected to the charging station will prevent it from being able to sync or transfer data.
• Software update: It is important to enable and use your device’s software security measures. Mobile devices have certain technical protections against such vulnerabilities and security threats. 
• Review Settings: Disable your device’s option to automatically transfer data when a charging cable is connected. This is the default on iOS devices. Android users should disable this option in the Settings app. If your device displays a prompt asking you to “trust this computer,” it means you are connected to another device, not simply a power outlet. Deny the permission, as trusting the computer will enable data transfers to and from your device.  So when you plug your device into a USB port and a prompt appears asking permission to "share data" or “trust this computer” or “charge only,” always select “charge only.”

Conclusion:

Cybercriminals or bad actors exploit public charging stations. There have been incidents where malware was planted in the system by the use of a USB cord, During the charging process, the USB cord opens a path into your device that a cybercriminal can exploit, which means the devices can exchange data. That's called juice jacking. Hence avoid using public charging stations, our safety is in our hands and it is significantly important to give priority to best practices and stay protected in the evolving digital landscape. 

References: 

• https://www.cbsnews.com/philadelphia/news/fbi-issue-warning-about-juice-jacking-when-using-free-cell-phone-charging-kiosks/
• https://www.comparitech.com/blog/information-security/juice-jacking/#:~:text=Avoid%20public%20charging%20stations,guaranteed%20success%20with%20this%20method
• https://www.fcc.gov/juice-jacking-tips-to-avoid-it

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Executive Summary:

This report deals with a recent cyberthreat that took the form of a fake message carrying a title of India Post which is one of the country’s top postal services. The scam alerts recipients to the failure of a delivery due to incomplete address information and requests that they click on a link (http://iydc[.]in/u/5c0c5939f) to confirm their address. Privacy of the victims is compromised as they are led through a deceitful process, thereby putting their data at risk and compromising their security. It is highly recommended that users exercise caution and should not click on suspicious hyperlinks or messages.

False Claim:

The fraudsters send an SMS stating the status of delivery of an India Mail package which could not be delivered due to incomplete address information. They provide a deadline of 12 hours for recipients to confirm their address by clicking on the given link (http://iydc[.]in/u/5c0c5939f). This misleading message seeks to fool people into disclosing personal information or compromising the security of their device. 

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The Deceptive Journey:

• First Contact: The SMS is sent and is claimed to be from India Post, informs users that due to incomplete address information the package could not be delivered.

• Recipients are then expected to take action by clicking on the given link (http://iydc[.]in/u/5c0c5939f) to update the address. The message creates a panic within the recipient as they have only 12 hours to confirm their address on the suspicious link.

• Click the Link: Inquiring or worried recipients click on the link.

• User Data: When the link is clicked, it is suspected to  launch possible remote scripts in the background and collect personal information from users.

• Device Compromise: Occasionally, the website might also try to infect the device with malware or take advantage of security flaws.

The Analysis:

• Phishing Technique: The scam allures its victims with a phishing technique and poses itself as the India Post Team, telling the recipients to click on a suspicious link to confirm the address as the delivery package can’t be delivered due to incomplete address. 
• Fake Website Creation: Victims are redirected to a fraudulent website when they click on the link (http://iydc[.]in/u/5c0c5939f) to update their address.
• Background Scripts: Scripts performing malicious operations such as stealing the visitor information, distributing viruses are suspected to be running in the background. This script can make use of any vulnerability in the device/browser of the user to extract more info or harm the system security.
• Risk of Data Theft: This type of fraud has the potential to steal the data involved because it lures the victims into giving their personal details by creating fake urgency. The threat actors  can use it for various illegal purposes such as financial fraud, identity theft and other criminal purposes in future.
• Domain Analysis: The iydc.in domain was registered on the 5th of April, 2024, just a short time ago. Most of the fraud domains that are put up quickly and utilized in criminal activities are usually registered in a short time.
• Registrar: GoDaddy.com, LLC, a reputable registrar, through which  the domain is registered. 
• DNS: Chase.ns.cloudflare.com and delilah.ns.cloudflare.com are the name servers used by Cloudflare to manage domain name resolution. 
• Registrant: Apart from the fact that it is in Thailand, not much is known about the registrant probably because of using the privacy reduction plugins. 

• Domain Name: iydc.in
• Registry Domain ID: DB3669B210FB24236BF5CF33E4FEA57E9-IN
• Registrar URL: www.godaddy.com
• Registrar: GoDaddy.com, LLC
• Registrar IANA ID: 146
• Updated Date: 2024-04-10T02:37:06Z
• Creation Date: 2024-04-05T02:37:05Z (Registered in very recent time)
• Registry Expiry Date: 2025-04-05T02:37:05Z
• Registrant State/Province: errww
• Registrant Country: TH (Thailand)
• Name Server: delilah.ns.cloudflare.com
• Name Server: chase.ns.cloudflare.com

Note: Cybercriminals used Cloudflare technology to mask the actual IP address of the fraudulent website.

CyberPeace Advisory:

• Do not open the messages received from social platforms in which you think that such messages are suspicious or unsolicited. In the beginning, your own discretion can become your best weapon.
• Falling prey to such scams could compromise your entire system, potentially granting unauthorized access to your microphone, camera, text messages, contacts, pictures, videos, banking applications, and more. Keep your cyber world safe against any attacks.
• Never reveal sensitive data such as your login credentials and banking details to entities where you haven't validated as reliable ones.
• Before sharing any content or clicking on links within messages, always verify the legitimacy of the source. Protect not only yourself but also those in your digital circle.
• Verify the authenticity of alluring offers before taking any action.
  

Conclusion:

The India Post delivery scam is an example of fraudulent activity that uses the name of trusted postal services to trick people. The campaign is initiated by using deceptive texts and fake websites that will trick the recipients into giving out their personal information which can later be used for identity theft, financial losses or device security compromise. Technical analysis shows the sophisticated tactics used by fraudsters through various techniques such as phishing, data harvesting scripts and the creation of fraudulent domains with less registration history etc.  While encountering such messages, it's important to verify their authenticity from official sources and take proactive measures to protect both your personal information and devices from cyber threats. People can reduce the risk of falling for online scams by staying informed and following cybersecurity best practices.

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