Lessons from SP Oswal and other recent Deep-fake Scams: How to combat sophisticated frauds

Scams in India are reaching a whole new level. Take the case of Sri S.P. Oswal, the 82-year-old chairman of Vardhman Group, who scammers posing as government officials, including impersonating the Chief Justice of India, defrauded of ₹7 crore into multiple accounts! These criminals used deep fake technology, fake legal documents, and a fabricated virtual courtroom to make everything look frighteningly real. Sri. The criminals convinced Sri Oswal that he was under investigation for money laundering, tricking him into transferring large amounts of money and subjecting him to round-the-clock monitoring under the guise of "digital arrest."

This scam is more than just shocking; it’s a massive wake-up call for all of us. It shows how even the most seasoned and tech-savvy people can fall victim to increasingly sophisticated online frauds. And it's not just one respected senior citizen. Scammers are targeting everyone from top businessmen to everyday citizens. For example, in June 2024, a Mumbai-based doctor was duped out of ₹7 lakh in a'share market scam' that used a deep fake video of billionaire Mukesh Ambani to promote a fake share trading academy. Then, in August, a businessman from Hyderabad fell prey to a fake Initial Public Offering (IPO) scam, losing ₹5.9 crore. These scammers used WhatsApp messages and fake calls from supposed Goldman Sachs officials, making the whole thing seem legitimate.

So, what’s going on here?

India saw a massive surge in digital fraud between January and April 2024, with losses hitting over ₹1,750 crore. Cybercriminals have gotten creative, pulling off scams like online investment fraud, fake lending apps, and even using scare tactics like "digital arrests," where they accuse people of being involved in drugs or sex rackets. One of the big reasons for this spike is the booming use of digital payments like UPI, which also saw fraud jump to a crazy ₹14.57 billion. Its lack of awareness around these scams makes people easy targets.

Scammers are using advanced technology, such as deep-fakes, AI, and social engineering tactics, to defraud people in unprecedented ways. They know how to play on fear and urgency, making you feel like you have no choice but to act fast. And this makes it even harder to spot the red flags.

What Can the Government Do?

In May this year, the Indian government warned the public about a growing number of "digital arrests" being reported. In these scams, cybercriminals sometimes dress up as police officers and operate from studios that look like police stations or government offices. These scammers use platforms like Skype to trick people, and over 1,000 Skype IDs linked to such activities have already been blocked.

The government also launched the Chakshu portal on the 'Sanchar Saathi' platform where people can report these kinds of scam calls. The Chakshu feature is all about protecting users from cyber fraud. It makes reporting shady activities easier and helps catch and prevent scams early on.

And, just a couple of days ago, the government rolled out a new system to catch and block incoming international spoofed calls before they even hit Indian telecom users. This comes in response to a wave of cases where people were "digitally arrested" and threatened with everything from mobile disconnection to fake accusations of being involved in drugs or sex rackets. Some scammers even went as far as pretending to be government officials or law enforcement! It's a move to put an end to these crafty cybercriminals. However, there are additional steps we can take to further strengthen the system.

1. Strengthen Cybercrime units: 

With the rise of deepfakes and AI-powered scams, India needs cybercrime units that can keep up with these new tactics. Specialised training and the latest tools should be provided to law enforcement agencies to stay ahead of the game.

2. Run awareness  campaigns:

Let’s face it, most people aren’t fully aware of how sophisticated scams have become. The government should launch big awareness campaigns that teach people how to spot scams, especially targeting senior citizens and business leaders who are often in the crosshairs.

3. Tighter regulations on deep fakes:

Deepfakes aren't just cool tech—they're dangerous when used for fraud. The government needs to implement stricter regulations on how deepfake technology can be used and come down hard on those using it for criminal purposes.

4. Cross-agency collaboration:

Financial institutions and law enforcement need to work hand-in-hand. Rapid responses to suspicious activities in bank accounts could prevent more people from becoming victims.

How to get senior citizens to update on technology

Scammers often target senior citizens because they're seen as easier prey. Many seniors aren't as familiar with modern technology, making it difficult for them to recognize common scam tactics. Social isolation can make them even more vulnerable to manipulation, and since seniors often have more savings or assets, scammers see them as prime targets for bigger payoffs.

One way to combat this is by educating seniors and raising awareness about these frauds. By teaching them how to recognize scams, spot red flags, and protect their assets, we can help make them less vulnerable to these schemes.

Helping senior citizens learn technology can be incredibly rewarding. Start by finding out what they’re interested in—maybe it's staying connected with family through video calls or simply browsing the internet for fun. There are so many devices and apps designed just for seniors, like tablets with bigger buttons and simple-to-use apps, which can make learning easier and more enjoyable.

The key is to go at their pace and focus on one thing at a time, so they don’t feel overwhelmed. Start with the basics, using simple and clear instructions. Easy-to-understand online resources can go a long way in empowering older adults to stay safe. Visual aids or step-by-step guides work wonders when explaining new concepts. Once they get the hang of one area, you can slowly introduce them to more features.

Also, consider partnering with local senior centres, residential societies, or libraries to set up workshops or one-on-one sessions. This can also teach them about online safety and avoiding fraud. With a bit of patience and encouragement, we can help them stay connected, safe, and engaged with the world in new and exciting ways.

What Should the Public Do?

1. Verify everything twice:

Got a suspicious email? Received a legal notice? Before acting, verify it with the real government agencies or companies involved. Don’t trust everything you see, especially if it’s coming through WhatsApp or email. So verify, verify and verify..

2. Don’t fall for urgency:

Scammers rely on making you feel like you need to act immediately. Whether they say your bank account is compromised or you’re under investigation, take a step back, breathe, and consult with someone you trust before making any decisions.

3. Stay up to date with technology:

Scams are evolving, and so should we. Keep informed about new types of fraud—like deep fakes—and know what signs to look out for. The more you know, the harder it is for scammers to trick you.

4. Report suspicious activity ASAP:

If something feels off, don’t hesitate to report it to the authorities. The sooner you alert them, the better their chances of catching the scammer and preventing more people from getting hurt.

Bottom Line

The S.P.Oswal fraud, the Mumbai doctor’s scam, and the Hyderabad businessman’s case all prove one thing: scammers are no longer just sending phishing emails. They’re using the latest technology—deep fakes, AI, and social engineering—to pull off extremely sophisticated cons. And it’s not just the tech-illiterates who are falling for it. Even experienced professionals are being duped.

To fight back, we need to stay informed, be cautious, and double-check everything. The government needs to ramp up its cybercrime units, pass stricter laws on deepfake use, and run mass awareness campaigns. As individuals, we need to slow down, ask questions, and never act out of fear or urgency.

In today’s digital world, being aware is your best defence. Don’t let fear or urgency make you a victim. Let these scams be a lesson to all of us to stay sharp and skeptical, especially when something seems too urgent to be true.