The ascent of artificial intelligence technologies, particularly the generative application of GANs, has changed the landscape of media production into a milieu that easily allows - creation of hyper-realistic yet deceptive content. While deepfakes have indeed been misused from entertaining, educative, and access provisions, their abuse causes dreadful threats to mental well-being and social harmony. This study explores the psychological effects of deepfakes, such as anxiety owing to identity theft, impersonation, trust erosion in digital media, cognitive dissonance because of the inability to tell the difference between real and fake content, and social isolation due to cyberbullying and non-consensual pornography. On the social front, deepfakes add to the pool of misinformation spreading, fake news politically entering the narratives, and a myriad of ethical dilemmas, adding to general confusion, anxiety, and distrust among the public at large in institutions. The economic designs revolve around hiring specialists to thwart deepfake manipulation and attending to its legal and psychological aftermath. To ameliorating this, the study points out a projective need for strategies of intervention. These would include developing an AI detecting tool that identifies and flags deepfakes, launching public awareness campaigns to increase digital literacy and critical thinking, instituting solid legal scaffolding with added ethical principles, and other support systems including counseling services supporting the victims of deepfake assaults. The study is primarily inclined toward discussing how integrated management approaches shall serve to address the issues faced concerning deepfakes, while the positives remain intact. Future research is necessary to explore the cultural and demographic nuances of deepfake impacts, understand the influence of the COVID-19 pandemic on mental health in the context of deepfake exposure, and evaluate the effectiveness of emerging prevention and mitigation strategies.