As financial services are moving increasingly to a digital experience, so are the methods that have appeared in the cybercriminal ecosystem. One of the more concerning trends in recent years has been the emergence of digital impostors; specifically, they are fake individuals posing as and impersonating authentic, trusted financial institutions, financial advisors, or online platforms in an effort to defraud a victim.
When cybercriminals commit fraud, it is no longer limited to simple phishing emails; today it is fraud using counterfeit websites, lookalike social media profiles, AI-generated deep fakes, and chat interfaces that have been altered.
How Do Digital Imposters Operate?
These scams often start subtly. A cloned website that looks nearly identical to a legitimate bank or investment platform might show up in search results or appear via a sponsored ad. Fraudsters also create fake social media accounts, impersonating financial advisors or influencers, complete with doctored credentials and fake testimonials.
In India, the rise of such scams has been significant. According to the Indian Cyber Crime Coordination Centre (I4C) / NCRP data, India recorded 9.66 lakh cybercrime complaints in 2022.*
In 2024, India’s cybercrime reporting mechanisms recorded ₹22,845 crore in financial fraud losses, more than double the previous year, marking a 206% surge.**
The number of high-value cyber frauds involving amounts above ₹1 lakh also saw a fourfold increase in fiscal 2024, with losses totalling approximately USD 20 million (₹160+ crore).***
Once a victim engages, scammers typically request personal information, such as banking credentials, Aadhaar or PAN numbers, or even ask for money transfers under the pretence of investment opportunities or account verification. Some may offer “guaranteed returns,” a hallmark red flag of fraudulent schemes.
Realistic Deception
What makes these scams particularly risky is their believability. Scammers often use the real names of registered entities and clone verified sites. Others run targeted campaigns via SMS messaging, social media/online platforms to appear more credible.
A recent tactic involves artificial intelligence generating images of financial advisors, or even voice clips, using “deepfake” technology to establish trust. In some cases, the scammer will run an online “webinar” or post a video with investors claiming to be “financial education providers,” and the investor tries to attract other individuals to invest or attend a webinar in a certain company.
Red Flags to Watch Out For
- Too-Good-to-Be-True Offers: Promises of high returns with low or no risk are classic signs of fraud.
- Unverified URLs or Social Profiles: Always double-check domain names and verify social media handles from official sources.
- Urgency and Pressure: Scammers often create a false sense of urgency to rush decisions.
- Unusual Communication Channels: Legitimate financial institutions rarely contact clients through personal messaging apps without prior consent.
How to Protect Yourself
- Verify Identities: Use official websites (check for .gov.in, .org, or company-verified domains) and contact financial entities through their verified customer care channels.
- Always verify registration: Before investing, check whether the mutual fund distributor, broker, or advisor is registered with the relevant regulator (like SEBI). You can cross-check their registration status on the official SEBI or AMFI website to ensure you’re dealing with an authorised intermediary.
- Avoid Clicking Unknown Links: Especially those sent via SMS or unsolicited emails.
- Report Suspicious Activity: Use the National Cyber Crime Reporting Portal to flag suspicious entities.
Verify Before You Trust
The advancements in digital ease within finance have provided consumers with digital threats, too. As scammer schemes develop, consumer vigilance will also need to be expanded upon. In a world full of impersonators, trust is not assumed; it must be earned and verified. That’s why it’s more important than ever to pause before acting – stop, think, and verify every financial interaction.
Source:
* The Hindu | Over ₹10,300 crore siphoned off by cyber criminals since April 2021: I4C | Jan 4, 2024
** TOI | India’s cyber fraud epidemic: Rs 22,845 crore lost in 2024; 206% jump from previous year, says government | Jul 22, 2025
*** Reuters | India says cyber fraud cases jumped over four-fold in FY2024, caused $20 mln losses | Mar 11, 2025