'Disregard all videos on specific...': Former RBI chief Raghuram Rajan warns against deepfake investment advices

Former RBI governor Raghuram Rajan cautioned about deepfake video posts on social media using his identity to give advice on investing, especially in individual stocks.

Highlighting such practices, Rajan in a post on LinkdIn, wrote, “I understand there are videos of me on various social media purporting to give advice on investing, especially in individual stocks. These are fake and the perpetrators should be reported to the relevant authorities.”

The former RBI chief added that he neither gives investment advice to the public nor have he touted individual stocks. “Please disregard all videos where I tout specific investments,” he advised.

Elaborating further, he said that each individual has their own financial needs and risk appetite.

“Investors are typically better off holding diversified portfolios of bank deposits, bonds, and stocks (through mutual funds and ETFs) rather than buying individual stocks or stock options. You may be extremely lucky and strike it rich, but more likely, you will be a lot poorer following the latter strategy.”

The post captured the attention of many who said they have come across such advices and have reported them. Some also expressed concern about citizens who are not tech savvy becoming victims to the menace.

“Kindly publish this over other social media channels i.e. Instagram, Facebook etc. Candidly speaking, I was so disturbed to see your name till yesterday over the matter of investment advice and was 80% sure that it is fake. Today, it’s clear,” one user wrote.

“Not only you sir, many other people's name used in such fake ads,” another wrote.

The menace of fake investment advice videos is a serious threat, which often misleads investors, leading to potential financial losses.

Last week, a Mumbai-based doctor got duped of Rs 7 lakh by fraudsters, who used a deepfake video of RIL chairman Mukesh Ambani to promote a fictitious share trading academy.

Other personalities like former captain of the Indian national team, Virat Kohli and batting legend Sachin Tendulkar have also been used in such deep fake videos to promote investments. Tendulkar had spoken out against such “rampant misuse of technology”.

In April, the BSE issued a circular expressing alarm over the proliferation of fake videos and audio impersonating its MD and CEO, Sundararaman Ramamurthy.

The advisory was issued a few days after the National Stock Exchange (NSE) of India cautioned investors against a deepfake video of its CEO, Ashishkumar Chauhan, giving stock recommendations.