Jamtara 2.0 and deepfake fraud: India to lose ₹70,000cr in 2025

Deepfake fraud has rapidly become one of India’s most pressing cybersecurity challenges, with projected losses estimated at ₹70,000 crore in 2025. 

According to Pi-Labs’ latest report, “Digital Deception Epidemic: 2024 Report on Deepfake Fraud’s Toll on India,” the accessibility and sophistication of generative AI tools are driving a sharp increase in crimes like financial scams, identity theft, and non-consensual adult content.

The report reveals that deepfake-related cybercrime cases in India have grown by 550% since 2019, marking a dramatic escalation in their impact. A significant development is the emergence of “Jamtara 2.0,” a term describing how deepfake technology is being used to manipulate video KYC processes, impersonate executives, and create fake digital evidence. 

With over 11 lakh video KYC calls conducted daily in India, this vulnerability has made individuals and financial institutions frequent targets for identity theft, fraudulent investments, and money laundering. Despite the alarming scale of the issue, nearly 65% of cyber incidents involving deepfakes remain unreported, leaving a massive gap in mitigation efforts.

Industries such as finance, media, law enforcement, and social platforms are among the hardest hit by deepfake technology. The report highlights that India ranks as the sixth most vulnerable country to deepfake adult content, with a 500% increase in such material since 2022. These crimes not only inflict financial losses but also undermine public trust in digital platforms and institutions.

Ankush Tiwari, Founder & CEO, pi-labs.ai, said: “Deepfakes have moved beyond being just a technical challenge—they’ve become a serious societal issue that undermines the trust we place in the information we consume online. We need to address this on multiple levels. 

"First, we must empower individuals and organizations with the tools, resources, and education to recognize and combat deepfakes effectively. Second, we need stronger, more comprehensive laws that can not only deter misuse but also hold offenders accountable. 

"Finally, it’s essential for technology innovators and policymakers to work together closely, anticipating emerging threats and developing solutions before they become larger problems. Only through this kind of collaborative effort can we restore the trust that is essential for a secure digital future.”

Looking to the future, the report warns of even more advanced threats, such as real-time deepfakes during live video calls, which could significantly complicate fraud detection. It also identifies promising developments, including advancements in AI-driven fraud detection tools and potential amendments to India’s IT Act to include deepfake-specific penalties. These measures could provide the framework for effectively tackling this evolving threat.

pi-labs emphasizes the need for a multi-faceted approach to counter the crisis. Legal frameworks must be strengthened to penalize the misuse of deepfake technology. Technological innovation, particularly in developing detection and verification systems, will be crucial in identifying manipulated content. Public awareness campaigns are equally important, equipping individuals with the knowledge to recognize and report deepfakes, reducing their effectiveness as a tool for fraud.

The report paints a stark picture of the risks posed by deepfake technology but also offers actionable solutions. Collaboration between governments, enterprises, and individuals will be critical in building a secure and trustworthy digital future.