As fast as Artificial Intelligence (AI) is making people’s lives easier, at the same time cyber criminals are also misusing it. The latest example of this is SPL, a subsidiary of jewelery company Sky Gold and Diamonds Ltd. (Starmangalsutra Private Limited) This has come to light in 2017, where the company was defrauded of about ₹ 10.70 crore (about ₹ 11 crore) by using deepfake technology and profile cloning.
This case is a big proof that now cyber fraud is not limited to only fake emails or phone calls, but with the help of AI based technology, criminals can also cheat crores of rupees by impersonating someone.
The company said in the information given to the stock exchange that this fraud is related to the official mobile phone and laptop of an employee of the company. Cyber criminals somehow gained unauthorized access to both these devices and then created deepfakes. (Deepfake)Profile cloning and psychological pressure (coercion) Using modern techniques like introducing himself as a director of the company. The employee felt that he was actually receiving instructions from a senior company official. In this confidence, he transferred many funds from the company’s bank account, which later reached unknown bank accounts.
When the entire matter was investigated, it was revealed that the concerned director had never given instructions for any such transfer. That means the employee became a victim of completely AI based fake identity and cyber fraud. According to the company, the incident has caused a financial loss of around ₹10.70 crore.
As soon as the incident was known, the company immediately lodged a complaint with the National Cyber Crime Helpline and the concerned Cyber Crime Police Station. Also, action has been initiated with the banks to trace and freeze the bank accounts to which the money was sent, so that maximum amount can be brought back. The company said that it is fully cooperating with all the concerned agencies and banks in the recovery of the money and legal action.
It is a matter of relief that the company has made it clear that in this incident there has been no indication of any tampering or data leak from its IT system, network, customer data or employee database. According to preliminary investigation, the matter is limited only to the employee’s misuse of company-issued mobile and laptop and misuse of communication channels. The company says that this incident has not had any major impact on its normal business and all business activities are continuing as before.
However, after this incident, Sky Gold and its subsidiary have decided to further strengthen their security arrangements. The company will now make employees more aware of cyber security, introduce multi-level verification for large payments, call-back confirmation and further tighten internal control procedures to prevent such incidents in future.
This matter is not limited to just one company, but is a big lesson for all companies and common people. In the growing era of AI and Deepfake technology, relying only on a call, video or message can be dangerous. It is now more important than ever to re-verify identity and adopt strong cyber security measures before any large financial transaction.