AI voice cloning, deepfake videos and personalised phishing messages are making financial scams harder to detect, prompting banks to strengthen cybersecurity awareness and urging customers to verify every suspicious request before transferring money.

Punjab National Bank (PNB) has issued a warning to customers about the growing threat of artificial intelligence-enabled cyberattacks, highlighting the increasing use of voice cloning, deepfake videos and sophisticated phishing techniques to commit financial fraud. The warning comes amid rising concerns over digital scams, as fraudsters exploit familiar voices, trusted identities and the widespread use of online banking and instant payment services.

The bank has urged customers to remain vigilant and avoid making financial decisions under pressure. As AI tools become more accessible, criminals can create increasingly convincing messages and impersonations, making it harder for individuals to distinguish genuine communications from fraudulent attempts.

AI Is Changing the Way Cybercriminals Target Customers

Traditionally, cyber fraud often relied on generic messages, suspicious links or calls from unknown numbers. However, AI-enabled tools can make these attempts appear more personal and credible.

Fraudsters may imitate the voice or appearance of a family member, friend, bank representative or another trusted person. They can then invent an emergency, claim that someone has been detained or injured, or demand an immediate transfer of money.

In a message to customers, PNB Managing Director and Chief Executive Officer Ashok Chandra highlighted how scammers exploit human emotions and everyday digital habits. Fear, trust and urgency can cause people to act before checking whether a request is genuine.

Deepfake videos and cloned voices can add another layer of deception. A familiar voice or realistic-looking video should therefore not be treated as conclusive proof of a person's identity.

Phishing Messages Are Becoming More Convincing

AI can also help fraudsters create personalised emails, text messages and instant messages that resemble legitimate bank communications. These messages may use professional language, familiar branding and details that make them appear authentic.

A fraudulent message might warn that a bank account will be blocked, a KYC process must be completed immediately or a payment has failed. The recipient may be directed to a fake website, asked to reveal confidential banking information or pressured into authorising a transaction.

Customers should be particularly cautious of messages that demand immediate action, request passwords or one-time passwords (OTPs), or contain links to unfamiliar websites. A message that appears to come from a known institution should still be independently verified.

Urgency Remains the Common Thread Behind Financial Scams

Cybersecurity experts have pointed out that although technology is changing, the underlying strategy behind many scams remains similar: create panic, reduce the victim's time to think and push them towards an immediate payment.

A fraudster may claim that a relative is in trouble, impersonate a law enforcement official or threaten to suspend a bank account unless money is transferred quickly. The objective is to prevent the victim from checking the facts.

Srinivas L, Joint Managing Director and Joint Chief Executive Officer of 63SATS Cybertech, has emphasised the importance of pausing and verifying suspicious requests through an independently chosen communication channel.

One practical safeguard is to call the person back using a number already saved in the phone rather than a number supplied during the suspicious conversation. Families can also agree on a private code word to help verify emergency requests involving money. Such a code should never be shared publicly or disclosed during an unverified call.

Essential Steps Customers Should Take to Protect Their Money

Customers can reduce their exposure to digital fraud by adopting a few basic security practices.

Verify before transferring money: If someone requests an urgent payment, end the conversation and contact the person directly through a previously verified number. Do not rely solely on a voice, video call or message.

Never disclose confidential credentials: Do not share OTPs, PINs, passwords, internet banking credentials or other sensitive information with callers or through suspicious links.

Enable two-factor authentication: Activate two-factor authentication wherever available, particularly for email, banking and social media accounts. Use strong, unique passwords for different services.

Set transaction limits: Consider setting suitable daily limits for UPI and card transactions. Lower limits can help restrict potential losses if an account or payment method is compromised.

Avoid suspicious links and applications: Do not download applications, install remote-access tools or enter banking details through links received from unverified sources.

Check account activity regularly: Review transaction alerts, bank statements and payment histories. Report unfamiliar transactions immediately to the bank.

Keep devices updated: Install security updates for mobile phones, computers, banking applications and other software. Updated systems can help address known security vulnerabilities.

Banks Strengthen Cybersecurity as Digital Risks Evolve

Indian public and private sector banks are increasing their focus on information technology and cybersecurity as digital transactions expand and attack methods become more sophisticated. Financial institutions must also respond to evolving regulatory expectations and emerging technological risks, including the potential future implications of quantum computing for existing encryption systems.

However, cybersecurity is not solely a technology challenge. Even sophisticated monitoring systems cannot eliminate every risk if a customer is manipulated into voluntarily sharing credentials or authorising a fraudulent transaction.

Banks, technology providers, regulators and customers therefore have complementary roles to play. Financial institutions need robust detection and response systems, while customers must remain alert to suspicious communications and follow secure digital practices.

What Should Customers Do If They Suspect Fraud?

Anyone who suspects that they have been targeted should stop communicating with the suspected fraudster, avoid authorising further transactions and contact their bank through its official channels. If money has already been lost, the incident should be reported immediately.

In India, victims of cyber financial fraud can call the national cybercrime helpline 1930 and report the incident through the official National Cyber Crime Reporting Portal at cybercrime.gov.in. Quick reporting can improve the chances of timely intervention, although recovery of funds is not guaranteed.

Customers should preserve relevant transaction details, messages, phone numbers and other evidence that may help investigators.

Cyber Awareness Is Becoming Essential for Digital Banking

PNB's warning underscores a wider challenge facing India's increasingly digital financial system. AI can improve customer service, fraud detection and operational efficiency, but the same technology can also be misused to create convincing impersonations and targeted scams.

For customers, the most effective defence is to combine digital security measures with disciplined decision-making. No urgent request for money should bypass independent verification, even when it appears to come from a trusted person or institution.

As AI-powered fraud techniques continue to evolve, staying alert, protecting confidential credentials and reporting suspicious activity promptly will remain essential to safeguarding personal information and hard-earned savings.