Zerodha’s Nithin Kamath raises concerns about fake apps & AI, urges RBI to take stricter action

Nithin Kamath took to X (formerly Twitter) to voice his concerns about the growing number of fake apps pretending to be legitimate banks, brokers, and payment platforms. His tweet follows RBI’s recent move to introduce an exclusive ‘.bank.in’ domain aimed at controlling digital financial fraud. 

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His Concerns about Fake Apps and AI 

In his post on X, the Zerodha founder emphasizes the risk posed by cyber fraud and how AI has only added fuel to this fire. He stressed the importance of implementing stricter steps to combat phishing schemes and the spread of fake apps, which often trick users into divulging sensitive personal information.

Kamath acknowledged the RBI's initiative but advocated for more comprehensive actions, such as the implementation of multi-layered app store policies, real-time AI-powered detection, and official app directories to assist consumers in identifying authorized companies. 

Earlier this week, the RBI introduced the 'bank.in' domain to improve cybersecurity and prevent fraud, with registrations set to begin in April through IDRBT, the organization's official registrar. A 'fin.in' domain for non-bank financial institutions is also in the works.

Kamath’s tweet read - 

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.

SEBI has published a consultation paper… pic.twitter.com/i1AJ6SGDe5

— Nithin Kamath (@Nithin0dha) February 8, 2025

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Netizens’ Support 

X Users have shown support for Kamath's concerns. One comment read, “Awareness is the key element, which enables customers to probe before taking action. 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 for 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 suggests, “AI is making digital frauds smarter, but SEBI & RBI are fighting back with smarter regulations. The ‘http://bank.in’ move is solid, but how about an official SEBI/RBI-approved verification badge for brokers & financial apps? If blue ticks work for X, why not for finance?”

One user added, “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 has previously expressed concerns about digital fraud, advising users to meticulously verify information and be wary of offers that appear too good to be true.

Kamath's call for more extensive measures emphasizes the need for a coordinated, multifaceted approach to countering digital fraud, particularly when new threats emerge from advances in technology like artificial intelligence (AI).

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