Technisanct, the Kerala based data security solutions provider, has called for regulatory measures to control deceptive stock ads as it is often leading to substantial personal, financial and professional losses to consumers.
Nandakishore Harikumar, CEO, Technisanct warned that such fraudulent attacks are on the rise due to the advent of deepfake AI and the increasing misuse of AI, especially the creation of deepfakes, is becoming a significant concern in the recent period.
He pointed out that more than 600 such digital ads have been created since May 1, this year with over 3,000 ads being run on Facebook, Instagram, and their audience network.
These scams cleverly use fake images of well-known stock market professionals, celebrities, and entrepreneurs to lure unsuspecting individuals. This manipulation not only undermines public trust but also poses significant risks to the financial security of individuals. It highlights a critical need for enhanced monitoring and regulatory measures on digital advertising to protect consumers from these deceptive practices, said Nandakishore Harikumar.
A report prepared by the company said deepfakes are artificially generated fake images, voices, and videos that are so convincing they can deceive individuals and businesses, often leading to substantial personal, financial, and professional losses. The stock market is no exception, and many unsuspecting victims unaware of deepfake technologies are falling prey to such scams, he said.
The modus operandi involves creating fake videos featuring popular brands, their founders, stock market advisors, and long-term investors offering investment advice or conducting interviews. These deepfakes are then circulated across social media platforms and counterfeit websites, often coupled with clickbait tactics to attract victims. Once ensnared, individuals are redirected to fraudulent platforms or fake websites that promise investments without requiring demat accounts or proper investment formats. Scammers are also using logos of SEBI, NSE, BSE, etc., to attract investments, the report said.
Another way of scamming involves clicking on ad links that lead to WhatsApp groups. Once you join the group, you are personally contacted and promised returns. Most of the phone numbers used in these WhatsApp groups are Indian numbers, the report said.