Stock market veteran Madhusudan Kela falls prey to deepfake; here's how to tackle this issue

Deepfake menace has now struck ace stock market investor Madhusudan Kela, who became the latest victim of the fraud. Kela has issued a statement clarifying that the video circulated on social media platforms over investment returns is fake. He is also in the process to take legal action.

"This is to inform you that a fake video which appears to be AI generated (voiceover on my existing video) is being circulated on various social media sites like Instagram/Fb claiming false information and promising investment returns. Please note that I have not made any such claims or promises and I do not support these communications. I am in the process of taking legal action for the same. Request you all to not invest on the basis of such video and kindly report the video and not to forward or share it further," Kela stated.

As of March 11, 2024, Trendlyne data showed that portfolio net worth of Madhusudan Kela rose by 15 per cent to Rs 1,383.09 crore.

How to tackle this issue

"Fraudsters are increasingly targeting prominent figures in the investment world, attempting to dupe retail investors of their money. The latest victim of such fraud is Kela, a veteran investor and founder of MK Ventures. These deepfakes are becoming increasingly convincing, blurring the line between what is authentic and what is not, further creating trust deficit in the ecosystem," said Ankit Ratan, CEO & Co-founder at Signzy.

"To tackle this issue, businesses should consider using tech for detecting video forgery to counter the risks associated with deepfakes. The advanced solution should involve real-time interactions, biometric analysis to detect digital alterations, multi-layered authentication, and adaptability to emerging threats, among other features. By leveraging the solutions, companies can detect and prevent such fraudulent activities, thereby enhancing digital trust within the ecosystem and safeguarding both business and individual reputations," Ratan further said.

To spot a fake video, look for unnatural movements and blurry edges around the face or hair. Skin texture can also be a giveaway if it is too smooth or unrealistically consistent. In addition to this, also look for inconsistencies in background, shadows or objects. Manipulated audio is also something that can reveal if it is a deepfake.

The government has issued an advisory for social media platforms against deepfake videos and images on their platforms. The advisory issued by the Ministry of Electronics and Information Technology (MeitY) asks these entities to comply with existing IT Rules with an aim to curb misinformation caused by deepfakes.

Deepfake technology, a type of artificial intelligence, allows anyone to be impersonated using their images. This technology can self-learn and produce convincing footage with various emotions, making them appear real.

The advisory also underscored that all the digital intermediaries need to inform their users “clearly and precisely" about the prohibited content on the platform, especially content mentioned under Rule 3(1)(b) of IT Rules. This rule requires platforms to identify and promptly remove misinformation, false or misleading content, and material impersonating others including deepfakes.