The age of AI promises a lot of changes that are set to happen in the world, across the board, in different segments and sectors. One of the most important sectors or industries that could be first in line to see and experience this change firsthand is the world of finance.
Digital Fraud
While changes are important, some changes carry malice from previous practices, emboldening them further. The focus here is on digital/cyber fraud in the finance sector.
Recently, the Reserve Bank of India, after its MPC meeting, underscored the importance of protecting consumers against the ills of the money world. The central bank asked the banking sector to shore up its bulwark against fraud.
Zerodha's Nithin Kamath | X
Reacting to these developments, Zerodha's Nithin Kamath raised caution against rising number of scams.
In a post on X, Kamath said, "The sheer number and variety of digital frauds is astounding."
Raising alarm at the rise of AI in this field, Kamath said, "It's fair to assume that things will only get much worse from here, thanks to AI."
He also underscored the role of SEBI and RBI and said that these bodies are trying to educate people and implement measures to combat these frauds.
On the recent measures, Kamath said, "SEBI has published a consultation paper proposing unique UPI IDs for brokers to ensure that investors transfer money only to SEBI-registered brokers and not to scammers using UPI IDs with broker names. Yesterday, the RBI announced that it would implement the "http://bank.in" domain exclusively for Indian banks, aiming to counter the numerous phishing sites that mimic legitimate bank websites."
Mumbai: 42-Year-Old Woman Scammed Out of More Than ₹15 Lakhs in Online Work-from-Home Scheme | Representational Photo
He also cautioned against the proliferation of fake apps that mimic banks, brokers, and payment apps. He added that action needs to be taken against such apps.
This is crucial given how, apart from causing interim fiscal constraints, the also affect the sentiment of taxpayers, when spending, thereby affecting consumption.
