Deepfake Threat: Govt asks banks, fintechs to gear up for deepfake threat

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MUMBAI: The government has asked banks to be ready to handle the risk of deepfakes clips, where individual voices are cloned to dupe people. The finance ministry has asked banks to include cyber risks while conducting stress tests to gauge their vulnerability.
Financial services secretary Vivek Joshi said that while collaborations between banks and fintechs have led to a number of innovations in customer service and last-mile credit delivery, there is a need for safeguards.He was speaking at SBI Economic Conclave here.
“The government has taken critical steps to ensure that robust cybersecurity systems are put in place. Banks need to move a notch up and include stress testing of cyber risk assessment to gauge the impact if any cyberattack happens,” he said. He added that this is already being done by banks in Europe and Singapore and should be followed in India.

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Joshi said that they indicate the next level of attacks, and that banks & fintechs must upgrade their tools to protect against these emerging threats. He further noted that while India is set to retain its tag as the fastest-growing economy in 2024, what was needed was a new cycle of private investment. “The need of the hour is to think big and bold, while ensuring that execution remains timely and robust,” said Joshi.
“Banks and financial institutions should reassess on whether their goal should include hand-holding and support for private conceptualisation and structuring,” said Joshi. “In 2023, the rupee will be the least volatile major currency. We have a healthy balance sheet for banks and corporates, which creates an enabling environment for new credit and investment. The twin balance sheet problem of the Indian economy has turned into a twin advantage,” said Joshi.
SBI chairman Dinesh Khara said, “We have seen a decoupling from the mayhem sweeping major developed markets, the bouts of volatility plaguing myriad asset classes that greatly undermined investors’ confidence in systemic ability being almost non-existent at our end.” Khara added that against the backdrop of the failure of large banking institutions globally, the relative calmness in India signals an unparalleled maturity of an ecosystem.



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