Nithin Kamath, founder and CEO of Zerodha, raised concerns with the Reserve Bank of India (RBI) about the growing issue of fake apps posing as banks, brokers, and payment platforms. This follows the RBI's announcement of a new '.bank.in' domain to help prevent digital fraud.
In a post on X, Kamath emphasized the escalating threat of cyber fraud, made worse by artificial intelligence, and called for stronger measures to combat phishing scams and counterfeit apps that deceive users into disclosing personal information.
Kamath recognized the RBI's initiative but stressed the need for more thorough actions, including multi-layered app store policies, real-time AI detection, and official directories to help users distinguish legitimate services.
Earlier this week, the RBI introduced the 'bank.in' domain to strengthen cybersecurity and combat fraud, with registrations scheduled to begin in April through IDRBT as the exclusive registrar. A 'fin.in' domain for non-bank financial institutions is also in the pipeline.
In his post, Kamath wrote, “The sheer number and variety of digital frauds is astounding. It's fair to assume that things will only get much worse from here, thanks to AI. Both SEBI and RBI are trying to educate people and implement measures to combat these frauds,” Kamath wrote. He also pointed out SEBI's recent consultation paper, which proposes the introduction of unique UPI IDs for brokers, ensuring that investors send money only to SEBI-registered brokers and not scammers using fraudulent UPI IDs."
Kamath also pointed out the RBI's announcement of the "http://bank.in" domain, which will be exclusively used for Indian banks in a bid to combat phishing sites that mimic real bank websites. However, he emphasized that fake apps impersonating banks, brokers, and payment platforms remain a major concern.
Kamath has raised concerns about digital frauds before, urging users to carefully verify information and be skeptical of offers that seem too good to be true.
Users have shown support for Kamath's concerns. One commenter, “Awareness is the key element, which enables customers to probe before taking actions. Tech-enabled solutions and fixes like domain names and app regulations strangle the existing fraud infrastructure. Scammers will find new techniques in 6 months, as it's happening from ages. Scammers need to be hit by next-level tech & AI and harsh & criminal punishment so that they stop thinking about it only.”
Another user commented, “SEBI and RBI are taking steps, but scammers always find new loopholes. Fake apps are the next big threat—hope action follows before damage is done.”
Kamath's call for stronger actions highlights the necessity of a unified, multifaceted approach to fight digital fraud, particularly as advancements in technology like AI create new challenges.
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