#FactCheck - "Deepfake Video Falsely Claims of Elon Musk conducting give away for Cryptocurrency”

Introduction

The Chairman of Vardhman Group, Mr SP Oswal, an India-based textile manufacturer, fell victim to a cyber fraud scheme that cost him ₹7 crore. The scam unfolded on August 28 and 29, conning Mr Oswal into transferring Rs 7 crore into multiple bank accounts. As per the recent reports, the Police have managed to freeze these accounts and recover over Rs 5 crore as of now. The fraudsters convinced Mr SP Oswal that he was a suspect in a money laundering investigation and held on a “Digital Arrest”. These are sophisticated cyber frauds where cyber-criminals impersonate law enforcement officials or other authorities and target innocent individuals with manipulative tactics. The scam targets are often contacted out of the blue, on Instant messaging apps like WhatsApp and informed that their bank accounts, digital identities, or other online assets have been compromised. Criminals play into the victims' fear by threatening them with imminent arrest, legal consequences, or public humiliation if they don't cooperate with a series of urgent demands.

Posing as Officials, Fraudsters Orchestrate ₹7 Crore Scam

The investigation revealed that the fraudsters posed as members of the Central Bureau of Investigation (CBI). They had contacted Mr Oswal and claimed that his Aadhaar had been misused in a case involving fake passports and financial fraud. The imposter conducted a video call in a police uniform using a background with the CBI logo. The fraud escalated further, Mr Oswal got a fake "arrest warrant" on  WhatsApp allegedly authorised by the Supreme Court. Fraudsters convinced Mr Oswal to transfer ₹7 crores to facilitate bail proceedings, claiming he was under "digital arrest". The meticulously planned scam involved fake documents, a virtual courtroom, and relentless intimidation tactics leaving Mr Oswal effectively under "digital arrest" for two days. While the police have successfully recovered over Rs 5 crore so far, this case highlights the alarming threat of digital impersonation of law enforcement authorities.

Legal Outlook on the Validity of Digital Arrests

In India, the main laws governing cyber crimes are the Information Technology Act, of 2000 and the rules made under therein, and the newly enacted Bhartiya Nyaya Sanhita, 2023. Recently enacted new criminal laws do not provide for any provision for law enforcement agencies conducting a digital arrest.  The law only provides for service of the summons and the proceedings in an electronic mode. Hence, there are no provisions for conducting 'digital arrests' as per the laws of the country. 

Further, It should be noted that the Indian Cyber Crime Coordination Centre (I4C), under the Ministry of Home Affairs, coordinates the activities related to combating cybercrime in the country. MHA works closely with other ministries to counter these frauds. The I4C also provides technical support to the police authorities of states/UTs for the identification and investigation of these cases. 

Best Practices to Avoid Digital Arrest Scams 

• To protect yourself from scams, it is crucial to verify the identity of individuals claiming to be law enforcement or government officials and use official contact channels to confirm their credentials. 
• Be cautious of pressure tactics used by fraudsters, especially demands for quick payment over unverified communication platforms like WhatsApp. 
• Cross-check official documents with legal advisors or relevant authorities. 
• Never share sensitive personal information, such as your Aadhaar number, over phone calls, emails, or messages without verifying the request's authenticity. 
• Avoid untraceable payments, such as cryptocurrency or prepaid cards, without validating the transaction's legitimacy, especially under duress. 
• Stay informed on scam techniques, particularly those involving impersonation and digital threats. 
• Enable Two-Factor Authentication (2FA) for sensitive online accounts to prevent misuse. 
• Consult advice from legal professionals if you receive threatening communication involving digital arrest or legal actions and do not take any action on the asks of persons posing as legitimate authorities. 
• In case of any cybercrime, you can file a complaint at cybercrime.gov.in or helpline number 1930. You can also seek assistance from the CyberPeace helpline at +91 9570000066.

Conclusion

The digital arrest of Vardhman Group's CEO underscores the increasing sophistication of cyber fraud schemes, which exploit fear and urgency, leading to severe financial and reputational harm. No one is immune from cybercrime, vigilance is essential at all leadership levels. While laws like the IT Act and initiatives taken by the I4C help combat cybercrime, rapidly evolving threats demand proactive safety measures. Beyond the possibility of financial loss, incidents like this jeopardise brand reputation, investor confidence, and operational stability. Be cautious of such threats and exercise due care and caution while navigating the digital landscape. Be aware of such kinds of scams and the manipulative tactics used by fraudsters to avoid them. By staying vigilant and aware we can avoid the growing scam of digital arrests. 

References

• https://www.business-standard.com/companies/news/digital-arrest-and-rs-7-crore-heist-how-vardhman-group-head-was-tricked-124100100832_1.html
• https://www.hindustantimes.com/business/vardhman-group-chairman-sp-oswal-duped-of-rs-7-crore-fraudsters-posed-as-cbi-101727666912738.html 
• https://www.msspalert.com/native/digital-arrests-the-new-frontier-of-cybercrime

‍

Introduction

In a world teeming with digital complexities, where information wends through networks with the speed and unpredictability of quicksilver, companies find themselves grappling with the paradox of our epoch: the vast potential of artificial intelligence (AI) juxtaposed with glaring vulnerabilities in data security. It's a terrain fraught with risks, but in the intricacies of this digital age emerges a profound alchemy—the application of AI itself to transmute vulnerable data into a repository as secure and invaluable as gold.

The deployment of AI technologies comes with its own set of challenges, chief among them being concerns about the integrity and safety of data—the precious metal of the information economy. Companies cannot afford to remain idle as the onslaught of cyber threats threatens to fray the fabric of their digital endeavours. Instead, they are rallying, invoking the near-miraculous capabilities of AI to transform the very nature of cybersecurity, crafting an armour of untold resilience by empowering the hunter to become the hunted.

The AI’s Untapped Potential 

Industries spanning the globe, varied in their scopes and scales, recognize AI's potential to hone their processes and augment decision-making capabilities. Within this dynamic lies a fertile ground for AI-powered security technologies to flourish, serving not merely as auxiliary tools but as essential components of contemporary business infrastructure. Dynamic solutions, such as anomaly detection mechanisms, highlight the subtle and not-so-subtle deviances in application behaviour, shedding light on potential points of failure or provoking points of intrusion, turning what was once a prelude to chaos into a symphony of preemptive intelligence.

In the era of advanced digital security, AI, exemplified by Dynatrace, stands as the pinnacle, swiftly navigating complex data webs to fortify against cyber threats. These digital fortresses, armed with cutting-edge AI, ensure uninterrupted insights and operational stability, safeguarding the integrity of data in the face of relentless cyber challenges.

India’s AI Stride

India, a burgeoning hub of technology and innovation, evidences AI's transformative powers within its burgeoning intelligent automation market. Driven by the voracious adoption of groundbreaking technological paradigms such as machine learning (ML), natural language processing (NLP), and Automated Workflow Management (AWM), sectors as disparate as banking, finance, e-commerce, healthcare, and manufacturing are swept up in an investment maelstrom. This is further bolstered by the Indian government’s supportive policies like 'Make in India' and 'Digital India'—bold initiatives underpinning the accelerating trajectory of intelligent automation in this South Asian powerhouse.

Consider the velocity at which the digital universe expands: IDC posits that the 5 billion internet denizens, along with the nearly 54 billion smart devices they use, generate about 3.4 petabytes of data each second. The implications for enterprise IT teams, caught in a fierce vice of incoming cyber threats, are profound. AI's emergence as the bulwark against such threats provides the assurance they desperately seek to maintain the seamless operation of critical business services.

The AI integration 

The list of industries touched by the chilling specter of cyber threats is as extensive as it is indiscriminate. We've seen international hotel chains ensnared by nefarious digital campaigns, financial institutions laid low by unseen adversaries, Fortune 100 retailers succumbing to cunning scams, air traffic controls disrupted, and government systems intruded upon and compromised. Cyber threats stem from a tangled web of origins—be it an innocent insider's blunder, a cybercriminal's scheme, the rancor of hacktivists, or the cold calculation of state-sponsored espionage. The damage dealt by data breaches and security failures can be monumental, staggering corporations with halted operations, leaked customer data, crippling regulatory fines, and the loss of trust that often follows in the wake of such incidents.

However, the revolution is upon us—a rising tide of AI and accelerated computing that truncates the time and costs imperative to countering cyberattacks. Freeing critical resources, businesses can now turn their energies toward primary operations and the cultivation of avenues for revenue generation. Let us embark on a detailed expedition, traversing various industry landscapes to witness firsthand how AI's protective embrace enables the fortification of databases, the acceleration of threat neutralization, and the staunching of cyber wounds to preserve the sanctity of service delivery and the trust between businesses and their clientele.

Public Sector

Examine the public sector, where AI is not merely a tool for streamlining processes but stands as a vigilant guardian of a broad spectrum of securities—physical, energy, and social governance among them. Federal institutions, laden with the responsibility of managing complicated digital infrastructures, find themselves at the confluence of rigorous regulatory mandates, exacting public expectations, and the imperative of protecting highly sensitive data. The answer, increasingly, resides in the AI pantheon.

Take the U.S. Department of Energy's (DOE) Office of Cybersecurity, Energy Security, and Emergency Response (CESER) as a case in point. An investment exceeding $240 million in cybersecurity R&D since 2010 manifests in pioneering projects, including AI applications that automate and refine security vulnerability assessments, and those employing cutting-edge software-defined networks that magnify the operational awareness of crucial energy delivery systems.

Financial Sector 

Next, pivot our gaze to financial services—a domain where approximately $6 million evaporates with each data breach incident, compelling the sector to harness AI not merely for enhancing fraud detection and algorithmic trading but for its indispensability in preempting internal threats and safeguarding knightly vaults of valuable data. Ventures like the FinSec Innovation Lab, born from the collaborative spirits of Mastercard and Enel X, demonstrate AI's facility in real-time threat response—a lifeline in preventing service disruptions and the erosion of consumer confidence.

Retail giants, repositories of countless payment credentials, stand at the threshold of this new era, embracing AI to fortify themselves against the theft of payment data—a grim statistic that accounts for 37% of confirmed breaches in their industry. Best Buy's triumph in refining its phishing detection rates while simultaneously dialling down false positives is a testament to AI's defensive prowess.

Smart Cities 

Consider, too, the smart cities and connected spaces that epitomize technological integration. Their web of intertwined IoT devices and analytical AI, which scrutinize the flows of urban life, are no strangers to the drumbeat of cyber threat. AI-driven defense mechanisms not only predict but quarantine threats, ensuring the continuous, safe hum of civic life in the aftermath of intrusions.

Telecom Sector 

Telecommunications entities, stewards of crucial national infrastructures, dial into AI for anticipatory maintenance, network optimization, and ensuring impeccable uptime. By employing AI to monitor the edges of IoT networks, they stem the tide of anomalies, deftly handle false users, and parry the blows of assaults, upholding the sanctity of network availability and individual and enterprise data security.

Automobile Industry 

Similarly, the automotive industry finds AI an unyielding ally. As vehicles become complex, mobile ecosystems unto themselves, AI's cybersecurity role is magnified, scrutinizing real-time in-car and network activities, safeguarding critical software updates, and acting as the vanguard against vulnerabilities—the linchpin for the assured deployment of autonomous vehicles on our transit pathways.

Conclusion 

The inclination towards AI-driven cybersecurity permits industries not merely to cope, but to flourish by reallocating their energies towards innovation and customer experience enhancement. Through AI's integration, developers spanning a myriad of industries are equipped to construct solutions capable of discerning, ensnaring, and confronting threats to ensure the steadfastness of operations and consumer satisfaction. 

In the crucible of digital transformation, AI is the philosopher's stone—an alchemic marvel transmuting the raw data into the secure gold of business prosperity. As we continue to sail the digital ocean's intricate swells, the confluence of AI and cybersecurity promises to forge a gleaming future where businesses thrive under the aegis of security and intelligence.

References 

• https://timesofindia.indiatimes.com/gadgets-news/why-adoption-of-ai-may-be-critical-for-businesses-to-tackle-cyber-threats-and-more/articleshow/106313082.cms
• https://blogs.nvidia.com/blog/ai-cybersecurity-business-resilience/
• 
  

In a recent ruling, a U.S. federal judge sided with Meta in a copyright lawsuit brought by a group of prominent authors who alleged that their works were illegally used to train Meta’s LLaMA language model. While this seems like a significant legal victory for the tech giant, it may not be so. Rather, this is a good case study for creators in the USA to refine their legal strategies and for policymakers worldwide to act quickly to shape the rules of engagement between AI and intellectual property.

The Case: Meta vs. Authors

In Kadrey v. Meta, the plaintiffs alleged that Meta trained its LLaMA models on pirated copies of their books, violating copyright law. However, U.S. District Judge Vince Chhabria ruled that the authors failed to prove two critical things: that their copyrighted works had been used in a way that harmed their market and that such use was not “transformative.” In fact, the judge ruled that converting text into numerical representations to train an AI was sufficiently transformative under the U.S. fair use doctrine. He also noted that the authors’ failure to demonstrate economic harm undermined their claims. Importantly, he clarified that this ruling does not mean that all AI training data usage is lawful, only that the plaintiffs didn’t make a strong enough case.

Meta even admitted that some data was sourced from pirate sites like LibGen, but the Judge still found that fair use could apply because the usage was transformative and non-exploitative.

A Tenuous Win

Chhabria’s decision emphasised that this is not a blanket endorsement of using copyrighted content in AI training. The judgment leaned heavily on the procedural weakness of the case and not necessarily on the inherent legality of Meta’s practices.

Policy experts are warning that U.S. courts are currently interpreting AI training as fair use in narrow cases, but the rulings may not set the strongest judicial precedent. The application of law could change with clearer evidence of commercial harm or a more direct use of content. 

Moreover, the ruling does not address whether authors or publishers should have the right to opt out of AI model training, a concern that is gaining momentum globally.

Implications for India

The case highlights a glaring gap in India’s copyright regime: it is outdated. Since most AI companies are located in the U.S., courts have had the opportunity to examine copyright in the context of AI-generated content. India has yet to start. Recently, news agency ANI filed a case alleging copyright infringement against OpenAI for training on its copyrighted material. However, the case is only at an interim stage. The final outcome of the case will have a significant impact on the legality of these language models being able to use copyrighted material for training.

Considering that India aims to develop “state-of-the-art foundational AI models trained on Indian datasets” under the IndiaAI Mission, the lack of clear legal guidance on what constitutes fair dealing when using copyrighted material for AI training is a significant gap.  

Thus, key points of consideration for policymakers include: 

• Need for Fair Dealing Clarity: India’s fair-dealing provisions under the Copyright Act, 1957, are narrower than U.S. fair use. The doctrine may have to be reviewed to strike a balance between this law and the requirement of diverse datasets to develop foundational models rooted in Indian contexts. A parallel concern regarding data privacy also arises. 
• Push for Opt-Out or Licensing Mechanisms: India should consider whether to introduce a framework that requires companies to license training data or provide an opt-out system for creators, especially given the volume of Indian content being scraped by global AI systems.
• Digital Public Infrastructure for AI: India’s policymakers could take this opportunity to invest in public datasets, especially in regional languages, that are both high quality and legally safe for AI training.
• Protecting Local Creators: India needs to ensure that its authors, filmmakers, educators and journalists are protected from having their work repurposed without compensation, since power asymmetries between Big Tech and local creators can lead to exploitation of the latter.

Conclusion

The ruling in Meta’s favour is just one win for the developer. The real questions about consent, compensation and creative control remain unanswered. Meanwhile, the lesson for India is urgent: it needs AI policies that balance innovation with creator rights and provide legal certainty and ethical safeguards as it accelerates its AI ecosystem. Further, as global tech firms race ahead, India must not remain a passive data source; it must set the terms of its digital future. This will help the country move a step closer to achieving its goal of building sovereign AI capacity and becoming a hub for digital innovation.

References

• https://www.theguardian.com/technology/2025/jun/26/meta-wins-ai-copyright-lawsuit-as-us-judge-rules-against-authors 
• https://www.wired.com/story/meta-scores-victory-ai-copyright-case/ 
• https://www.cnbc.com/2025/06/25/meta-llama-ai-copyright-ruling.html 
• https://www.mondaq.com/india/copyright/1348352/what-is-fair-use-of-copyright-doctrine 
• https://www.pib.gov.in/PressReleasePage.aspx?PRID=2113095#:~:text=One%20of%20the%20key%20pillars,models%20trained%20on%20Indian%20datasets. ‍
• https://www.ndtvprofit.com/law-and-policy/ani-vs-openai-delhi-high-court-seeks-responses-on-copyright-infringement-charges-against-chatgpt