Sweden’s Truecaller, a prominent developer known for its caller ID and spam-blocking application, is actively implementing advanced technologies in response to an alarming trend: the rise of criminal activities leveraging artificial intelligence to generate highly convincing voice clones for fraudulent purposes. CEO Rishit Jhunjhunwala recently addressed the growing issue in an exclusive conversation with Bloomberg News, emphasizing how scammers are adeptly using voice cloning to target businesses and their executives.

Jhunjhunwala highlighted a particularly concerning tactic where fraudsters replicate the voice of a CEO and then contact the company's finance chief with the intent to request a substantial financial transfer. This form of impersonation exploits trust and can lead to significant financial losses for businesses. He noted that these criminals go beyond impersonating executives; they also pose as fictitious customers to infiltrate corporate systems, further compromising security. With the widespread availability of generative AI tools, these malicious actors can easily and convincingly imitate voices, thereby escalating the risk of telephone fraud.

To counter this, Truecaller has developed a system that analyzes and scans incoming voice calls, looking for signs that suggest the voice is computer-generated rather than human. “In the landscape of emerging markets, where communication primarily occurs through mobile devices, we find that criminals are shifting their focus to exploit these vulnerabilities,” Jhunjhunwala remarked during his first major interview after taking over as CEO earlier this month.

He recognizes that the landscape of digital crime is evolving rapidly and often outpaces the measures taken to combat it. The surge in digital crime coincides with Truecaller’s impressive growth, particularly in India, where the app has secured a commanding user base, accounting for approximately 70% of the company’s revenue. As of last year, global monthly active users of the app exceeded 433 million, and analysts are forecasting full-year revenue of around 1.85 billion Swedish kronor (approximately 166.5 million USD) for 2024, based on data compiled by Bloomberg.

Truecaller’s strategy for combating voice cloning scams is the integration of CallHero, an Israeli cloud telephony company acquired in 2022. Jhunjhunwala stated that Truecaller plans to continue exploring strategic acquisitions in the field of artificial intelligence. He predicts that “2025 will be a pivotal point for AI adoption across the board in the company,” particularly highlighting the potential use of large language models to analyze and detect call patterns from the vast amounts of data Truecaller collects.

The company’s shares have surged by 21% this year, reflecting growing investor confidence in its prospects. Recently, Carnegie Investment Bank reaffirmed its buy recommendation, noting that the company’s new growth initiatives have often gone unnoticed amidst broader market sluggishness. Truecaller shares experienced a notable increase, closing up 13.1% on the Stockholm stock exchange.

In parallel with AI advancements, Truecaller’s forthcoming strategy involves monetizing a newly enhanced application compatible with iOS 18, the latest operating system from Apple Inc. Although only 7% of Truecaller’s active user base currently utilizes iOS devices, Jhunjhunwala expresses a strong belief that this ratio will improve as the company enhances its ecosystem to accommodate developers like Truecaller.

This updated iOS app will feature the capability to detect every phone number, addressing a critical limitation compared to its Android counterpart, an improvement that Jhunjhunwala claims Truecaller significantly influenced. This app upgrade is particularly important for the Indian market, where Jhunjhunwala observes Apple’s increasing ambitions, viewing this growth trajectory as a positive indicator for Truecaller’s future. However, the company is also contending with the complexities of evolving data protection laws, such as the Data Protection Act in India, which could present significant compliance challenges. In light of these legislative changes, Truecaller has proactively adopted data protection practices globally that conform to stringent European Union regulations, which Jhunjhunwala states reflect the company’s commitment to ethical standards and responsible business practices. He emphasizes that implementing such measures is not just a regulatory obligation but the “right thing to do” in safeguarding user data and trust.

Source: Bloomberg