Scammers use AI deepfakes of Indian chief minister to promote fake investment scheme

Scammers in India have used AI-generated deepfake technology to create a fraudulent video featuring Andhra Pradesh Chief Minister N Chandrababu Naidu promoting a fake investment scheme. The incident highlights growing concerns about deepfake misuse in financial fraud, prompting government officials to warn of stern action against cyber criminals exploiting this technology.

What happened: Cybercriminals created an AI-generated video of Chief Minister Naidu falsely endorsing an investment scam that promised massive returns for an initial investment of Rs 22,000 (approximately $260).

• The deepfake video was distributed across social media platforms, claiming that “one of India’s most successful entrepreneurs has revealed how you can change your life forever.”
• IT Minister Nara Lokesh, who is also Naidu’s son, discovered the fraudulent content and issued a public warning on social media platform X.

The government response: State officials expressed shock at the brazen use of deepfake technology and vowed to take strict action against the perpetrators.

• “Shocked to see a fake AI-generated video featuring a popular senior journalist and our chief minister, Shri Nara Chandrababu Naidu garu, falsely promoting a scam offering massive investment returns. Let me be very clear – this is a complete fraud,” Lokesh wrote on X.
• The IT minister warned that “criminals misusing deep-fake tech to deceive the public will not be spared” and urged citizens to “stay alert” and “report immediately.”

Why this matters: The incident underscores the growing threat of AI-generated content being weaponized for financial fraud, particularly as deepfake technology becomes more sophisticated and accessible.

• While political parties have legitimately used AI-generated videos for campaign purposes, the misuse of such technology for investment scams represents a dangerous escalation in cybercrime.
• The case demonstrates how scammers are exploiting public trust in government officials to lend credibility to fraudulent schemes.

The broader context: This incident reflects a wider pattern of deepfake misuse targeting unsuspecting victims through fake investment opportunities and betting applications.

• People are increasingly falling prey to such sophisticated fraud schemes that leverage AI technology to create convincing but entirely fabricated endorsements.
• The use of a senior journalist alongside the chief minister in the deepfake video suggests scammers are strategically selecting trusted public figures to maximize their scheme’s credibility.