In a significant crackdown on a sophisticated cyber fraud operation, the Cyber Police Station (West Division) in Mumbai has apprehended four senior employees of a digital advertising firm. The individuals are accused of providing Facebook advertising account access to Chinese cybercriminals, who then used AI-generated deepfake videos of prominent stock market experts to lure and cheat investors across India.
The Arrests and the Accused
The police have identified the arrested as Chandrashekar Naik, the Vice President of Valueleaf, Jijil Sebastian, the account head, along with two other employees, Danial Arumugam and Deepayan Bannerji. All four were employed with Valueleaf India Services Pvt Ltd. The arrests followed a formal complaint lodged by a research analyst and television stock market expert who discovered that his morphed, deepfake videos were being circulated as ads on Facebook and Instagram.
How the Elaborate Scam Operated
Investigations revealed a disturbing chain of events. The accused employees allegedly sold Facebook Ad IDs to Chinese clients without conducting proper identity verification. These IDs became tools for running paid promotional campaigns. Since September 29, cyber fraudsters utilized AI to create convincing deepfake videos of the analyst, sourced from his appearances on business news channels. These fake videos were used to promote bogus investment schemes falsely associated with reputable companies.
Deputy Commissioner of Police (Cyber) Purshottam Karad stated that the company officials had prior knowledge their platform was being misused by fraudsters from China but allowed it to continue. An investigation report prepared by Inspector Swarna Shinde highlighted that despite repeated warnings and violation flags raised by Meta, the parent company of Facebook and Instagram, the accused continued to provide advertising access to international clients for financial gain.
Financial Gains and Public Warning
The police disclosed that the accused received approximately Rs 3 crore in Indian and foreign currencies as payment for granting this illegal access. The Mumbai Cyber Police have urged citizens to exercise extreme caution. They advise the public to avoid investment offers made through online ads or social media, especially those that claim an association with well-known market experts or celebrities, as these are increasingly likely to be sophisticated scams.
This case underscores the growing threat of deepfake technology in financial cybercrime and highlights the critical need for digital advertising intermediaries to enforce stringent client verification processes to prevent their platforms from being weaponized by international fraud rings.
