#FactCheck-Old Accident Involving Delhi Police Head Constable Falsely Linked to CJP Protest

Introduction
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Generative AI, particularly deepfake technology, poses significant risks to security in the financial sector. Deepfake technology can convincingly mimic voices, create lip-sync videos, execute face swaps, and carry out other types of impersonation through tools like DALL-E, Midjourney, Respeecher, Murf, etc, which are now widely accessible and have been misused for fraud. For example, in 2024, cybercriminals in Hong Kong used deepfake technology to impersonate the Chief Financial Officer of a company, defrauding it of $25 million. Surveys, including Regula’s Deepfake Trends 2024 and Sumsub reports, highlight financial services as the most targeted sector for deepfake-induced fraud.

Deepfake Technology and Its Risks to Financial Systems

India’s financial ecosystem, including banks, NBFCs, and fintech companies, is leveraging technology to enhance access to credit for households and MSMEs. The country is a leader in global real-time payments and its digital economy comprises 10% of its GDP.  However, it faces unique cybersecurity challenges. According to the RBI’s 2023-24 Currency and Finance report, banks cite cybersecurity threats, legacy systems, and low customer digital literacy as major hurdles in digital adoption. Deepfake technology intensifies risks like:

• Social Engineering Attacks: Information security breaches through phishing, vishing, etc. become more convincing with deepfake imagery and audio.
• Bypassing Authentication Protocols: Deepfake audio or images may circumvent voice and image-based authentication systems, exposing sensitive data.
• Market Manipulation: Misleading deepfake content making false claims and endorsements can harm investor trust and damage stock market performance.
• Business Email Compromise Scams: Deepfake audio can mimic the voice of a real person with authority in the organization to falsely authorize payments.
• Evolving Deception Techniques: The usage of AI will allow cybercriminals to deploy malware that can adapt in real-time to carry out phishing attacks and inundate targets with increased speed and variations. Legacy security frameworks are not suited to countering automated attacks at such a scale.

Existing Frameworks and Gaps

In 2016, the RBI introduced cybersecurity guidelines for banks, neo-banking, lending, and non-banking financial institutions, focusing on resilience measures like Board-level policies, baseline security standards, data leak prevention, running penetration tests, and mandating Cybersecurity Operations Centres (C-SOCs). It also mandated incident reporting to the RBI for cyber events. Similarly, SEBI’s Cybersecurity and Cyber Resilience Framework (CSCRF) applies to regulated entities (REs) like stock brokers, mutual funds, KYC agencies, etc., requiring policies, risk management frameworks, and third-party assessments of cyber resilience measures. While both frameworks are comprehensive, they require updates addressing emerging threats from generative AI-driven cyber fraud.

Cyberpeace Recommendations 

• AI Cybersecurity to Counter AI Cybercrime: AI-generated attacks can be designed to overwhelm with their speed and scale. Cybercriminals increasingly exploit platforms like LinkedIn, Microsoft Teams, and Messenger, to target people.  More and more organizations of all sizes will have to use AI-based cybersecurity for detection and response since generative AI is becoming increasingly essential in combating hackers and breaches.
• Enhancing Multi-factor Authentication (MFA):  With improving image and voice-generation/manipulation technologies, enhanced authentication measures such as token-based authentication or other hardware-based measures, abnormal behaviour detection, multi-device push notifications, geolocation verifications, etc. can be used to improve prevention strategies.  New targeted technological solutions for content-driven authentication can also be implemented.
• Addressing Third-Party Vulnerabilities: Financial institutions often outsource operations to vendors that may not follow the same cybersecurity protocols, which can introduce vulnerabilities. Ensuring all parties follow standardized protocols can address these gaps.
• Protecting Senior Professionals: Senior-level and high-profile individuals at organizations are at a greater risk of being imitated or impersonated since they hold higher authority over decision-making and have greater access  to sensitive information. Protecting their identity metrics through technological interventions is of utmost importance.
• Advanced Employee Training:  To build organizational resilience, employees must be trained to understand how generative and emerging technologies work. A well-trained workforce can significantly lower the likelihood of successful human-focused human-focused cyberattacks like phishing and impersonation.
• Financial Support to Smaller Institutions: Smaller institutions may not have the resources to invest in robust long-term cybersecurity solutions and upgrades. They require financial and technological support from the government to meet requisite standards.

Conclusion

According to The India Cyber Threat Report 2025 by the Data Security Council of India (DSCI) and Seqrite, deepfake-enabled cyberattacks, especially in the finance and healthcare sectors, are set to increase in 2025. This has the potential to disrupt services, steal sensitive data, and exploit geopolitical tensions, presenting a significant risk to the critical infrastructure of India. 

As the threat landscape changes,  institutions will have to continue to embrace AI and Machine Learning (ML) for threat detection and response. The financial sector must prioritize robust cybersecurity strategies, participate in regulation-framing procedures, adopt AI-based solutions, and enhance workforce training, to safeguard against AI-enabled fraud. Collaborative efforts among policymakers, financial institutions, and technology providers will be essential to strengthen defenses.

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Sources 

• https://sumsub.com/newsroom/deepfake-cases-surge-in-countries-holding-2024-elections-sumsub-research-shows/ 
• https://www.globenewswire.com/news-release/2024/10/31/2972565/0/en/Deepfake-Fraud-Costs-the-Financial-Sector-an-Average-of-600-000-for-Each-Company-Regula-s-Survey-Shows.html 
• https://www.sipa.columbia.edu/sites/default/files/2023-05/For%20Publication_BOfA_PollardCartier.pdf 
• https://edition.cnn.com/2024/02/04/asia/deepfake-cfo-scam-hong-kong-intl-hnk/index.html 
• https://www.rbi.org.in/Commonman/English/scripts/Notification.aspx?Id=1721 
• https://elplaw.in/leadership/cybersecurity-and-cyber-resilience-framework-for-sebi-regulated-entities/ 
• https://economictimes.indiatimes.com/tech/artificial-intelligence/ai-driven-deepfake-enabled-cyberattacks-to-rise-in-2025-healthcarefinance-sectors-at-risk-report/articleshow/115976846.cms?from=mdr 

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Artificial intelligence is growing at a rapid pace, with startups promising breakthroughs in industries and attracting billions in investment. Among these was Builder.ai, a London-based company founded in 2016 by an Indian entrepreneur. Once valued at over $1.5 billion, it was known for its game-changing platform that could let anyone build custom apps quickly and affordably with the help of AI.

Yet in 2025, Builder.ai collapsed dramatically, filing for bankruptcy across multiple countries and laying off nearly 80% of its workforce. What was once a celebrated unicorn has become a cautionary tale, exposing not only the risks of hype-driven growth in AI but also inflicting reputational damage on Indian founders in the global startup ecosystem.

The Rise: Big Promises, Big Investors

Builder.ai branded itself as a no-code/low-code app development platform, where its AI assistant “Natasha” would guide customers in creating apps without technical expertise. The pitch was simple and attractive: app development was made “as easy as ordering pizza.” The story resonated with major investors. Backed by SoftBank, Microsoft, and Qatar’s sovereign wealth fund, Builder.ai raised more than $450 million. It scaled rapidly, positioning itself as one of Europe’s most promising AI startups.

The Cracks Appear

Behind the glamour, the first cracks appeared as early as 2019, when The Wall Street Journal reported that Builder.ai’s platform depended far more on human engineers than on the AI automation it advertised. In reality, the much-hyped AI assistant “Natasha” was often just “a guy instead”, i.e., skilled developers in India manually writing code behind the scenes on whose backs the company expanded aggressively. 

The real blow came from Builder.ai’s finances. The company was accused of inflating revenue figures by 300%, with alleged use of round-tripping tactics involving fake invoices that inflated financials.  While it publicly projected revenues of $220 million in 2024, its actual figure was closer to $55 million. When this reality surfaced, investor confidence was lost quickly, and the company’s liabilities ballooned to nearly $100 million, with less than $ 10 million in assets remaining. 

Collapse and Legal Scrutiny

By 2025, the company’s foundations had crumbled. The founder stepped down as CEO but retained the unusual title of “Chief Wizard.” Massive debts to AWS, Microsoft, and other partners mounted into the hundreds of millions. Assets were seized, and the company filed for bankruptcy in the U.S., UK, India, and the UAE.

For clients, the collapse meant abandoned projects. For employees, around 1,000 of them, it meant sudden unemployment. And for investors, it was a devastating loss. The Securities and Exchange Commission and U.S. Attorney’s Office in New York have since launched investigations into potential fraud and investor misrepresentation.

Reputational Damage: Impact on Indian Founders

Perhaps the most enduring consequence of Builder.ai’s downfall is the hit to the credibility of Indian founders on the global stage.

For years, Indian entrepreneurs have earned trust in global tech circles, with leaders heading companies from Google to Microsoft. Indian-led startups abroad were viewed as reliable, innovative, and growth-driven. Builder.ai’s collapse disrupts this narrative.

The allegations of inflated revenue, AI exaggeration, and questionable governance risk reinforcing skepticism among global investors regarding Indian organisational ethics. For other Indian founders seeking international capital, the road has now become tougher: stricter due diligence, harsher scrutiny of claims, and slower trust-building.

This reputational damage arrives at a critical time when India is positioning itself as a global hub for AI and leads the world in AI skill penetration. Rather than highlighting the strength of India’s entrepreneurial and talent ecosystem, the fall of Builder.ai has drawn attention to the risks of overpromising and underdelivering.

Conclusion

The fall of Builder.ai is more than the bankruptcy of one AI unicorn. It is a warning to companies against chasing hyper growth fueled by the riding of the AI wave. While the company’s downfall exposed flaws in governance and accountability, its deeper impact lies in how it dented trust. To drive AI and technology innovation, startups must move beyond flashy valuations and commit to authentic innovation, transparency, and financial integrity.

References

• https://www.moodys.com/web/en/us/insights/lending/moodys-early-warning-in-action-builder-ai.html#:~:text=Despite%20marketing%20itself%20as%20an,fake%20invoices%20that%20inflated%20financials. 
• https://today-innovation.webflow.io/unveiling-the-power-of-natasha-an-ai-assistant-of-builder-ai-to-revolutionize-app-generation 
• https://finance.yahoo.com/news/builder-ais-shocking-450m-fall-170009323.html
• https://www.pib.gov.in/PressReleasePage.aspx?PRID=2108810 
• https://www.cnbctv18.com/technology/how-a-london-based-startups-artificial-ai-gambit-backfired-ws-l-19613692.htm# 

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Introduction

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In today’s digital environment, national security challenges extend well beyond traditional military domains. One growing concern is the unauthorised extraction of information, which is increasingly being used through subtle and gradual methods rather than overt force. Recent advisories point to a rising pattern in which foreign organisations seek to recruit individuals to collect and handle sensitive material, often using financial cybercrime networks as part of their operational ecosystem. This trend has implications for journalists, defence personnel, researchers, students, and academics working in strategic, geopolitical, and security-related fields. The core risk lies in the fact that these activities can proceed quietly and without coercion, with participants sometimes unaware that their actions may contribute to intelligence gathering efforts.

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Digital Platforms as Vectors for Targeted Recruitment

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Professional networking and job portals have become central to modern career development. The same visibility that supports professional advancement is being misused by others. Foreign entities reportedly use these platforms to identify individuals with experience in journalism, defence services, strategic studies, cybersecurity, and international relations.

Early-career professionals and students from reputed Higher Education Institutions (HEIs) are particularly vulnerable because they seek freelance work, research experience and international partnerships. Initial outreach is often framed as legitimate consultancy, research assistance, or content development work, which creates the impression of professional credibility through normal business operations.

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Task-Based Information Extraction

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The organisation assigns writing and research duties to new employees, which seem simple to perform. The topics of source-based articles and analytical pieces include the following two subjects about India.

• The first subject examines India's foreign relations with its strategic partnerships.
• The second subject investigates how armed forces operate through different military movements.
• The third subject focuses on defence procurement activities, which include weapon system development and modernisation projects.
• The fourth subject investigates military activities through joint training exercises and war simulation exercises.

The public possesses most of this knowledge, but its threat emerges from the process of collecting and interpreting data with contextual information. The collection of insights from various sources enables organisations to identify operational patterns, strategic priorities and capacity evaluations which go beyond particular data points.

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The Financial Cybercrime Nexus

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The financial system that pays contributors presents itself as a major problem for this activity. Payments are often routed through:

• Indian bank accounts, including student accounts
• Funds originating from cyber fraud or financial crimes
• Occasional overseas transfers structured to avoid scrutiny

The system establishes a direct connection between financial cybercrime activities and the theft of confidential information, which brings unintentional danger of legal issues and public image damage to those involved. The Indian legal system considers all connections to illegal financial activities as serious offenses even when the person involved did not intend to commit any crime.

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Concealed Identities and Data Harvesting
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The entities that conduct recruitment activities willfully hide their real identities. The organisation uses intermediaries for their operations, which they present as foreign consulting firms, think tanks and analytics companies. Contributors who have defence or security experience will face requests to provide their personal data, which includes their PAN and Aadhaar information.

The collection of such data raises significant concerns. The system creates permanent privacy hazards that permit unauthorised access to personal data and identity theft and coercive practices. The ultimate use of this information often remains opaque to the individuals providing it.
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Why Incremental Leakage Matters
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The threat operates silently because it lacks the visibility of major cyberattacks. The combined effect of all articles and research notes becomes dangerous because no single element can cause harm. Hostile organisations can use incremental information leakage to undermine national security because they can analyse their gathered data to create:

• maps of strategic capabilities,
• defence readiness evaluations,
• security and foreign policy narrative control.

The process of information sovereignty erosion occurs through the establishment of undefined boundaries between journalism and academic research, and consultancy and strategic analysis. The lack of clear boundaries between journalism and academic research, consultancy and strategic analysis makes it difficult to determine who is responsible for research outcomes.
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The Role of Institutions and Individuals
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The universities and media outlets, together with the professional organizations have essential functions in their quest to diminish environmental effects. The organisation should perform the following proactive steps:

• The organisation should organise training programs which will educate people about its services.
• The organisation should require researchers to conduct thorough investigations before they accept paid assignments for research work and writing tasks.
• The organisation should recommend that people do not share their identity documents except when their institution requires it for authentication purposes.
• The organisation should create specific methods to report any suspicious activities that people might encounter.

Students and professionals need to understand that their specialised knowledge and trustworthiness can be used against them. People must protect their digital identities through three actions, which include verifying their affiliations and assessing the complete effects of their daily activities.
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Conclusion

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Cyber enabled threats to national security increasingly operate in grey zones, which makes their legality, legitimacy, and true intent difficult to assess. The convergence of foreign recruitment efforts, financial cybercrime, and covert information gathering creates a persistent risk that is still not widely recognised or fully understood. The state does not bear exclusive responsibility for protecting sensitive information. National resilience in an interconnected knowledge economy requires organisations to develop three core capacities, which include institutional awareness and restraint and institutional vigilance. Cyber resilience depends on two essential factors, which include secure systems and informed citizens, because data continues to determine power relationships.
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References
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• https://reports.weforum.org/docs/WEF_Global_Cybersecurity_Outlook_2025.pdf
• https://www.cyber-espionage.ch/
• https://www.theguardian.com/world/2025/nov/18/mi5-issues-alert-to-mps-and-peers-over-chinese-espionage
• http://cybercrimejournal.com/menuscript/index.php/cybercrimejournal/article/download/263/92
• https://www.researchgate.net/publication/368461675_Cyber_Espionage_Consequences_as_a_Growing_Threat

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