#FactCheck -AI-Generated Crowd Video Falsely Tied to Epstein Files Release

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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A photo showing Cilia Flores, wife of Venezuelan President Nicolás Maduro, with visible injuries on her face is being widely shared on social media. Users claim the image was taken during her court appearance in the United States on January 5, alleging that she was beaten before being produced before a judge. Cyber Peace Foundation’s research  found that the viral image was created using AI tools and is not real.

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Claim:

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A Facebook user shared the image claiming it shows Venezuelan President Maduro’s wife during her US court appearance, alleging physical assault prior to her arrest. The post also makes political and religious allegations in connection with the incident.Link, archive link and screenshot

• https://www.facebook.com/groups/674544033342149/posts/2098587984271073/ 
• https://archive.ph/6zu0g 

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Fact Check:

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The viral image appeared suspicious due to unnatural facial details and injury patterns. Given the increasing use of artificial intelligence to generate fake visuals, Vishvas News analysed the image using AI image detection tools.TruthScan assessed the image as 93% likely to be AI-generated.

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Sightengine flagged the image as 77% likely to be AI-generated.

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The results indicate that the image is not authentic and has been created using AI tools.

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What Official Reports Say

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According to a CBS News report published on January 6, Nicolás Maduro and his wife Cilia Flores were produced before a federal court in Lower Manhattan, where they pleaded not guilty to drug trafficking and other charges. They are currently lodged at the Metropolitan Detention Center in Brooklyn The report states that the couple was detained during a US military operation. Following this, Venezuela’s Vice President Delcy Rodríguez was sworn in as the acting president. While Cilia Flores did appear before a Manhattan court, there is no authentic image showing her with injuries during the court proceedings. Link and Screenshot

‍https://www.cbsnews.com/live-updates/venezuela-trump-maduro-charges/ 

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Conclusion:

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The image being circulated as a photo of Cilia Flores during her US court appearance is AI-generated and fake. The claim that it shows injuries inflicted on her before being produced in court is false and misleading. The viral image has no connection with real court visuals.

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Cyber attacks in India besides becoming common are also getting deadlier. Each strike has taken proportions to drive home the fact that no one is safe.

Hacker ‘John Wick’, hasn’t spared India’s PM or Paytm. Cyber intelligence firm Cyble which dredges the Dark Web has red-flagged hacking episodes at Truecaller, Dunzo, Unacademy, Naukri.com, Bharat Earth Movers Limited (BEML), LimeRoad and IndiaBulls.Picture this, Mumbai-based cybersecurity firm Sequretek, says in Covid-hit 2020, India has seen a 4000% spike in phishing emails and a 400% uptake in the number of policy violations that have grown over 400% as per the latest statistics.Besides the threat to crucial data, the cost suffered by companies is phenomenal. According to a report by IBM’s ‘Cost of a Data Breach Report 2020’ report, Indian companies witnessed an average $2 Mn total cost of data breach in 2020, this is an increase of 9.4% from 2019.

Another survey by Barracuda Networks revealed that 66% of Indian organisations have had at least one data breach or cybersecurity incident since shifting to a remote working model during the pandemic.

Indian Startups At Mercy Of Cyber Attacks

More recently personal data of 2.8 Lakh WhiteHat Jr students and teachers were exposed, where crucial details of minors have been made available on the dark web. Another major breach that took place this week and exclusively reported by Inc42 was when data of 1.4 Mn job seekers was leaked when jobs portal IIMjobs was hacked.

Vineet Kumar, the founder of Cyber Peace Foundation (CPF), a think tank of cybersecurity and policy experts, said that with the increased digitisation of companies and their processes, data has become the new oil.

“You get good money when you sell users data on the dark web. Hackers discovering vulnerabilities and using SQL injections to pull entire databases remains a common practice for hacking,” Kumar told Inc42.

The CyberPeace Foundation says from mid-April to the end of June it noticed 8,98,7841 attacks, July and August saw 64,52,898 attacks. Whereas September and October saw 1,37,37,516 attacks and 18,149,233 attacks respectively.

Speaking to Inc42, Pankit Desai, cofounder and CEO, Sequretek says, “Originally only a limited set of systems were being exposed, now with WFH all systems have to be exposed to the internet as all your processes are enabled remotely. WFH also creates an additional challenge where ‘personal assets are being used for professional purposes’ and ‘professional assets are being used for personal purposes.”

Malwares like SpyMax, Blackwater are being used as a combination of phishing mails and poorly secured home computers to harvest credentials. These credentials are then used for carrying out attacks. The number of attacks with harvested credentials is already up 30%, the company revealed.

Government data shows that in 2019 alone, India witnessed 3.94 lakh instances of cybersecurity breaches. In terms of hacking of state and central government websites, Indian Computer Emergency Response Team (CERT-In) data shows that a total of 336 websites belonging to central ministries, departments, and state governments were hacked between 2017 and 2019.

According to Nasscom’s Data Security Council of India (DSCI) report 2019, India witnessed the second-highest number of cyber attacks in the world between 2016 and 2018. This comes at a time when digitisation of the Indian economy is predicted to result in a $435 Bn opportunity by 2025.On September 22, the Ministry of Electronics and Information Technology (MeITY) told the Parliament that Indian citizens, commercial and legal entities faced almost 7 lakh cyberattacks till August this year.

The Indian Computer Emergency Response Team (CERT-In) has “reported 49,455, 50,362, 53,117, 208,456, 394,499 and 696,938 cybersecurity incidents during the year 2015, 2016, 2017, 2018, 2019 and 2020 (till August) respectively,” the MeITY said while responding to an unstarred question in the Lok Sabha regarding cyberattacks on Indian citizens and India-based commercial and legal entities.“

India also lacks a cohesive nation-wide cyber-strategy, policies, and procedures. Regulations around data privacy, protection, and penalty should be enacted and enforced as these measures will help businesses evaluate their cybersecurity posture and seek ways to improve. Currently, incident reporting is not mandatory. By making it compulsory, there will be a body of research data that can provide insights on threats to India and inform the government on strategies it can undertake to strengthen the nation’s cyber posture,” said Kumar Ritesh, founder and CEO, Cyfirma.The Internet Crime Report for 2019, released by the USA’s Internet Crime Complaint Centre of the Federal Bureau of Investigation (FBI), has revealed that India stands third in the world among top 20 countries that are victims of internet crimes.

Kumar attributes these numbers to Indian’s lack of basic cyber awareness. However, a poignant point is also the lack of a robust cybersecurity policy in India.  Though the issue was touched upon by Prime Minister Narendra Modi during his Independence Day speech on Aug 15, 2020, not much movement has happened on that front.

“Cybersecurity is a very important aspect, which cannot be ignored. The government is alert on this and is working on a new, robust policy,” Modi said.The PM’s announcement was made in the backdrop of the government’s initiative to connect 1.5 lakh gram panchayats through an optical fiber network, thereby increasing the country’s internet connectivity.

With India pipped to take on the world with its IT prowess and increased digital integration the need for a robust policy is now more than ever.

‍Source: https://inc42.com/buzz/3-94-lakhs-and-counting-how-cyberattacks-are-a-worry-for-digital-india/