A highly sophisticated cyber fraud case involving artificial intelligence (AI), deepfake technology and alleged manipulation of data related to Aadhaar has been busted in Ahmedabad, Gujarat. Cyber Crime Branch officials have arrested three more suspects from Assam and Uttar Pradesh in connection with an interstate gang accused of availing online loans in the names of innocent individuals after illegally changing mobile numbers linked to Aadhaar cards.
Investigators claim the gang used sophisticated digital tools and identity manipulation techniques to circumvent online verification systems and obtain instant digital loans. Officials said the fraudsters first altered the mobile numbers linked to victims’ Aadhaar and then used the updated numbers to activate banking services, apply for loans and divert funds to multiple accounts.
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Newly arrested suspect’s role in AI fraud network
The newly arrested suspects include Rubul Hussain, a B.Com student and resident of Assam, who is said to be the mastermind behind the technical operations of the network. Investigators say the suspect was involved in data theft and digital identity manipulation activities. Krishna Prajapati, a resident of Uttar Pradesh, allegedly worked as a cybercafe operator and agent and helped change Aadhaar-related details in exchange for a commission. Another accused, Qasimuddin Ali, who is reportedly educated till class 7, is accused of receiving fraudulent proceeds into his bank account.
Cybercrime authorities revealed that the gang operated through a highly organized process. The suspects allegedly collected GST and PAN-related details through websites like ‘Master India’ and then checked CIBIL scores and financial records to identify potential targets for quick digital loans. Investigators also suspect that the gang used Telegram bots and social media platforms to obtain information related to Aadar and photos of the victims.
AI-generated deepfake videos and mobile number hijacking
After collecting the necessary data, the suspect allegedly created an AI-generated “deepfake flashing video” to fool online authentication and biometric systems. Cybersecurity experts say such videos can appear very realistic and can fool automatic identity verification mechanisms used by financial platforms. Using this technique, the gang allegedly changed mobile numbers linked to Aadhaar without the knowledge of the original users.
Once the mobile number was changed, the suspects allegedly activated new SIM cards, opened bank accounts and secured multiple small digital loans of ₹25,000 ₹50,000 ₹50,000. Authorities believe the scam was repeated across multiple victims using tiered digital identities and mule bank accounts.
The scam was reportedly discovered after an Ahmedabad businessman stopped receiving OTPs linked to his Aadhaar-enabled payment system. During investigation, authorities found that his Aadhaar-linked mobile number and biometric details were suspected to have been changed without OTP-based verification. It was later discovered that online loans were also made in his name. Investigators suspect that some local Aadhaar kit operators may have helped the gang in carrying out the scam.
Scale of fraud, ongoing investigation, and cybersecurity alerts
Cybercrime authorities estimate that the gang was illegally obtaining around Rs 1 million to Rs 15 million every year through fraudulent digital loan applications. Seven suspects have been arrested in the case so far, but another suspect, identified as Oli Ullah from Assam, remains at large. Police teams are searching in multiple states to track down the suspect.
Professor Triveni Singh, a renowned cybercrime expert and former IPS officer, said AI and deepfake technologies are now increasingly being used for digital identity theft, biometric fraud and financial crimes. According to him, “Cybercriminals are no longer using deepfake technology only for fake videos. These tools are now being integrated into organized financial fraud and identity manipulation operations, making cybercrime investigations even more difficult. ”
Cybersecurity analysts believe that the incident raises serious concerns regarding the safety of India’s digital identity infrastructure and Aadhaar-based authentication ecosystem. Investigators are currently examining Aadhaar records, banking transactions, SIM activation history and digital server logs to determine the full extent of the network. The authorities have also reportedly alerted relevant departments to possible vulnerabilities within the identity verification system.
