Every day, cybercriminals armed with artificial intelligence target businesses and consumers worldwide. In Hyderabad alone, the Telangana Cyber Security Bureau fields 250 cybercrime calls daily, with financial losses averaging Rs 5 crore. This alarming trend signals a global shift where AI becomes both shield and weapon in the digital battleground.
At the TRUST AICS – 2025 conference, Shikha Goel, director of the Telangana Cyber Security Bureau, warned that AI is a “double-edged sword.” She emphasized that “AI must be harnessed as a shield for society, rather than a threat.” The stakes couldn’t be higher as fraudsters deploy sophisticated AI tools to devise innovative scams while security agencies race to strengthen defensive algorithms.
Record Losses Drive Strategic Response
Deepfake fraud poses the most significant risk, with potential losses in India projected at Rs 70,000 crore by 2025, according to Pi-Labs’ Digital Deception Epidemic report. These synthetic media attacks challenge traditional identity verification systems that financial institutions have relied on for decades. A KPMG survey reveals that 72% of organizations consider reputational damage the severest impact of fraud, extending far beyond immediate financial losses.
Global data reinforces this threat. Regula’s identity verification report shows deepfake fraud resulted in average losses of $450,000 per business in 2024. The United States alone could lose up to $40 billion annually by 2027 to AI-enabled scams, while Moonlock reports impersonation fraud surged 148% this year.
Prime Day Surge: 36,000 Fraudulent Sites Target Shoppers
Cybercriminals specifically target major retail events, with McAfee identifying over 36,000 fraudulent Amazon websites during Prime Day sales. The security firm also discovered 75,000 impersonation text messages designed to steal personal and financial information. In India, where 96% of consumers plan to shop online during Prime Day 2025, 71% express greater concern about AI-generated scams during major retail events.
The tactics have evolved beyond simple phishing. Fraudsters now create deepfake videos of influencers endorsing products and generate fake Amazon notification texts that mimic legitimate delivery alerts. These messages use urgent language to pressure recipients into clicking malicious links before verification. Among those affected by deepfake scams during sale events, some reported losing more than Rs 40,000.
Corporate Defense: Real-Time Compliance Monitoring
While criminals exploit AI, forward-thinking businesses deploy it as a protective shield. Vasanth Kumar, director of compliance at Darwinbox, explained how AI reshapes corporate governance: “AI can now review compliance evidence itself, instead of waiting for an auditor. Systems can flag violations in real time, and in some cases, even prevent them before they occur.”
Large Language Models focus on data consumption, regional operation, data localization, and privacy assurances. However, liability concerns remain complex. Anuraag Gorty, security lead at Glean, points to well-known failures like facial recognition systems that misidentify darker skin tones and hiring tools that favor certain demographics. “AI liability cannot rest on a single actor. Developers must ensure data diversity, deploying organizations must run fairness and bias checks, and regulators must both guide and enforce,” he noted.
Advanced Detection: Blockchain and Multi-Factor Authentication
Financial institutions are adopting sophisticated countermeasures. Advanced AI algorithms detect anomalies in facial features, verify digital footprints, identify irregular head movements, and spot lip-sync errors invisible to human observers. Blockchain technology offers robust identity verification by creating immutable and verifiable digital identities, making it harder for deepfakes to create or copy personas.
Video verification has become standard to prevent deepfake-based KYC fraud, though even this faces challenges. Deepfake technology now simulates blinking, subtle head movements, and micro-expressions. Current deepfake usage is led by video (46%) and images (32%), followed by audio (22%).
Strategic Response for Business Leaders
Multi-factor authentication adds critical security layers, forcing scammers to overcome additional hurdles. Training programs must equip employees to recognize red flags: avoiding unknown callers, refraining from instant emergency reactions, using code words with contacts for identity confirmation, and verifying video or photo sources before taking action.
Businesses must implement comprehensive defense strategies. Nearly half (49%%) of consumers would consider using scam detection tools, while 27%% plan to shop less during major sales events due to fraud fears. This consumer wariness directly impacts revenue, making robust security measures essential for maintaining market confidence.
Why This Transforms Global Business
The rapid evolution of AI-driven fraud demands immediate strategic adaptation. Voice cloning requires just 15 seconds of audio to create convincing impersonations, while 70%% of people cannot confidently distinguish between real and cloned voices, according to McAfee’s global survey. One standout case involved an employee in Hong Kong who was fooled by a deepfake CFO in a video call and authorized a $25 million transfer.
For business leaders worldwide, embracing AI defensively becomes critical for protecting operations and maintaining consumer trust. The threat landscape requires reassessing verification protocols, implementing multi-layered authentication systems, and fostering cultures of digital vigilance.
Recognizing AI’s potential for harm shapes strategies that secure transactions and mitigate risks across global operations. By integrating blockchain identity solutions, advanced detection algorithms, and comprehensive employee training, businesses can fortify against pervasive AI-driven threats while preserving the trust essential for digital commerce.
What’s your organization’s strategy for combating AI-powered fraud? Share your approach to balancing innovation with security.
