AI in Stock Market: A Dual-Edged Sword of Innovation and Deception
The Rise of AI in Stock Market Manipulation
AI's potential for misuse has come to light, particularly in stock markets where it can enable large-scale impersonation at low costs. In April, videos of Ashishkumar Chauhan, the MD and CEO of the National Stock Exchange (NSE), recommending stocks went viral on social media. The video, with the NSE logo, looked genuine enough to influence gullible investors with stock-trading tips. In reality, it was a deepfake using sophisticated technologies to replicate Chauhan's voice and face.
Deepfakes and Cyber Investment Scams
The use of deepfakes in investment scams is alarming. A Bombay High Court directive prompted a removal of accounts infringing on the NSE trademark. In January, fake videos promoting stocks created confusion on platforms like Facebook. The rise of impersonation videos is accentuated, as AI tools appear to manipulate the reputations of well-known figures, creating a fraudulent environment.
Government Response and Risks of AI
In September, the Directorate of Enforcement reported cyber investment scams totaling ₹25 crore. Individuals across various regions have been defrauded by offering fake investment opportunities through deepfake technologies and misleading apps. As AI continues to evolve in capital markets, regulatory bodies like Sebi are focused on balancing the adoption of AI with essential protective measures, ensuring investors are safeguarded against potential threats.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.