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SEBI Unleashes AI to Shield Investors from Fraudsters
10 Jan
Summary
- SEBI will use AI to detect fraudsters posing as financial advisors.
- The Sudarshan system flags fake advisors on social media.
- New AI tools will analyze cyber audit reports for security gaps.
The Securities and Exchange Board of India (SEBI) is leveraging artificial intelligence to bolster investor protection and ensure market integrity. SEBI Chairman Tuhin Kanta Pandey announced at the ANMI convention in Chennai that the regulator is actively deploying internally developed AI tools to combat fraud.
These advanced AI systems are designed to detect individuals and groups who falsely present themselves as registered financial advisors to mislead investors. The SEBI Sudarshan system, for instance, is specifically used to identify fraudsters operating on social media platforms, serving as a crucial defense against deception and financial scams.
Beyond flagging fraudulent advisors, SEBI is also developing AI capabilities to analyze cyber audit reports, identifying potential security gaps. This initiative, alongside ongoing investor awareness campaigns and tools like validated UPI handles and SEBI Check, underscores SEBI's commitment to safeguarding investors in an increasingly digital financial landscape.
