Indias rapid digital transformation has resulted in a significant increase in cybercrimes, including deepfake-enabled scams such as Digital Arrest fraud. This highlights the urgent need for advanced security solutions. This paper explores the use of artificial intelligence (AI) in preventing scams, specifically focusing on real-time deepfake detection and anomaly analysis. AI technologies can identify inconsistencies in multimedia content, including facial discrepancies and audio-visual mismatches, as well as detect unusual user behaviors, such as suspicious financial transactions. By acting as an early warning system, AI can reduce fraud and prevent financial losses. To address privacy concerns, this study emphasizes the importance of privacy-preserving AI methods, such as local data processing and transparent handling protocols, ensuring a balance between security and user privacy. The findings aim to contribute to safer digital environments and support sustainable digital transformation.