Fraudsters have long depended on social engineering to trick people online, but with the rise of artificial intelligence their methods have become far more advanced, widespread, and harder to identify. In this week’s edition of The Safe Side, we take a closer look at the growing menace of AI-powered scams and the precautions users should adopt.
One recent case began with a WhatsApp message that seemed to come from a woman’s sister-in-law in New Jersey, urgently requesting money. To confirm, she called the number and heard a familiar voice reply “Yes”. Believing it to be genuine, she transferred money via Google Pay—only to later discover she had been cheated.
Investigators suspect that the fraudsters used AI-based voice cloning technology to replicate her relative’s voice, making the deception nearly impossible to detect. The Hyderabad cybercrime team is currently tracking the case. Police have cautioned that such scams are spreading quickly and urged people to always cross-check emergency money requests, even if they appear to come from close contacts. They recommend confirming identities through video calls, enabling WhatsApp’s two-step verification, and reporting any suspicious activity immediately.
A study by McAfee earlier this year revealed alarming statistics. Around 83 percent of Indian victims of AI voice scams reported losing money, with nearly half of them losing more than Rs 50,000. The survey further showed that 69 percent of Indians struggle to tell the difference between a real and AI-generated voice. Additionally, 47 percent of Indian adults have either personally faced or know someone who has faced an AI voice scam—almost double the global average of 25 percent.
Common AI-driven frauds
Experts highlight several popular methods criminals are currently using:
🔹OTP thefts: AI scraping tools enable fraudsters to trick users into sharing OTPs through phishing, merged calls, or SIM swaps.
🔹Email attacks: AI-backed spear phishing creates highly tailored emails, sometimes reinforced with deepfake video calls.
🔹Digital arrest cons: Scammers impersonate law enforcement using AI-generated voices and fake backgrounds to pressure victims into transferring money.
🔹Fake loan apps: Malicious apps steal contacts and photos, later using AI threats and doctored images to extort money.
🔹Bogus investment sites: Fraudulent trading platforms display fake dashboards and use AI chatbots to delay withdrawals.
🔹Romance and deepfake traps: AI-generated profiles and videos lure people into financial or emotional exploitation.
Why these scams succeed
According to Imteyaz Ansari, CEO of Azmarq Technologies, AI scams in India have spiked in 2025, particularly on WhatsApp, SMS, and phone calls. He noted that the trend reflects the growing sophistication of cybercrimes, especially through phishing, deepfake impersonations, and voice cloning.
Cybersecurity expert Neehar Pathare of 63SATS Cybertech explained that such scams are effective because they exploit human psychology—fear, trust, and urgency. Amod Joshi, chief technology strategist at Turinton, added that fraudsters often collect publicly available data, then use it to create cloned voices or deepfake videos that appear convincing in emails, calls, or virtual meetings. These urgent requests for money or sensitive details often feel authentic, making them highly persuasive.
Kaushal Beda, director at Pelorus Technologies, cautioned that while not every fraud uses AI, it is increasingly layered onto traditional scams to make them more convincing and difficult to trace. He stressed that voice cloning, romance scams, and deepfake extortion are among the most dangerous threats right now.
How to stay safe
Experts suggest the following measures:
🔹Never share OTPs or login credentials, no matter how urgent the request seems.
🔹Confirm identities through official channels or secure video calls.
🔹Pause and double-check any unusual or sudden requests before responding.
🔹Avoid deals that sound too good to be true.
🔹Limit the amount of personal photos and details shared online.
🔹Enable two-factor authentication and use trusted cybersecurity apps like CYBX by 63SATS Cybertech.
AI is now being misused to power a wide range of scams, from fake celebrity endorsements and shopping sites to impersonation fraud against businesses. Criminals have even cloned the voices of corporate executives to authorize fraudulent transactions, putting not just individuals but also banks and government agencies at risk. This trend poses a threat not only to finances but also to public trust and security.
Steps if you fall victim
🔹Report immediately on cybercrime.gov.in or dial 1930.
🔹Check all official notices directly on government portals.
🔹Avoid installing unverified loan or trading apps.
🔹Keep detailed records of evidence such as screenshots and chat histories to support investigations.
As Pathare emphasized, “The strongest defense is to pause before reacting, question before trusting, and verify before acting.” While technology is advancing rapidly, awareness and caution remain the most reliable shields against AI-driven fraud.