Device connection regulatory measures to control deceptive stock advertising

Technisanct, a Kerala-based data security solutions provider, has called for regulatory measures to check deceptive stock advertisements as it often leads to significant personal, financial and professional losses for consumers.

Nandakishore Harikumar, CEO of Technisanct, warned that the number of such fraudulent attacks is increasing due to the emergence of deepfake AI and the increasing misuse of AI, especially the creation of deepfakes, has become a serious problem in recent times.

He emphasized that since May 1 this year, over 600 such digital ads have been created, of which over 3,000 were displayed on Facebook, Instagram and their audience networks.

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These scams cleverly use fake images of well-known stock market professionals, celebrities and entrepreneurs to lure unsuspecting people. This manipulation not only undermines public trust, but also poses a serious risk to the financial security of individuals. It highlights the critical need for enhanced monitoring and regulatory measures around digital advertising to protect consumers from these deceptive practices, said Nandakishore Harikumar.

According to a report prepared by the company, deepfakes are artificially generated fake images, voices and videos that are so convincing that they can deceive individuals and companies, often leading to significant personal, financial and professional losses. The stock market is no exception, and many unsuspecting victims, unaware of deepfake technology, fall prey to such scams, he said.

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The modus operandi involves creating fake videos of popular brands, their founders, stock advisors and long-term investors offering investment advice or conducting interviews. These deepfakes are then spread on social media platforms and fake websites, often combined with clickbait tactics to attract victims. Once caught, people are redirected to fake platforms or fake websites that promise investments without the need for a demat account or proper investment formats. According to the report, fraudsters also use the logos of SEBI, NSE, BSE, etc. to attract investments.

Another way of cheating is to click on advertising links that lead to WhatsApp groups. Once you join the group, we will contact you personally and promise refunds. The report shows that most of the phone numbers used in these WhatsApp groups are Indian numbers.