For years, the promise of eKYC (electronic Know Your Customer) has been to make customer onboarding faster, cheaper, and more secure. However, as AI technology evolves, so do the risks. What happens when deepfakes – those eerily realistic, AI-generated videos – start tricking financial institutions into approving fraudulent applications? The potential risks are staggering.

Deepfakes: the new age fraudsters

Reserve Bank of India (RBI) have recognised the growing concern of deepfake fraud. Mandating live video as part of the KYC process is a step forward, but as AI-powered scams continue to rise, even these measures may fall short. Imagine a criminal manipulating a video to fool a KYC system—using a face that’s not their own but appears strikingly real. In fact, deepfake-related fraud in the fintech sector surged by 700% in 2023, globally. It's a scenario that keeps banking executives up at night, especially with credit and loan applications at stake.

A smarter way to fight fraud

Finacus Solutions, a leading digital banking solution provider based in Mumbai, and pi-labs.ai, an AI-based startup specialising in deepfake detection, have teamed up to fortify eKYC. Together, they have integrated cutting-edge deepfake detection technology into Finacus’s established eKYC framework. What’s particularly noteworthy is how this solution combines human intuition with AI-driven precision. The result? A hybrid system that doesn’t just identify fraudulent attempts but continually evolves, becoming more adept at securing transactions over time.

Why this matters now?

Why is this collaboration so crucial? As the financial sector undergoes rapid digital transformation, it’s becoming a prime target for sophisticated scams. With over 63 billion eKYC transactions happening worldwide, the potential for fraud is vast. Instances such as fraudulent Jan Dhan accounts used to exploit government subsidies are just the beginning. Banks that fail to adapt risk being left vulnerable.

This technology doesn’t just shield financial institutions—it safeguards customers by ensuring that their identities are verified securely and accurately, mitigating the risk of AI-generated fraud.

A safer, smarter tomorrow

The financial industry is evolving its approach to eKYC processes, placing emphasis on enhancing security alongside convenience. As the sector navigates the complexities introduced by artificial intelligence, both challenges and potential solutions emerge. Moving forward, secure digital verification will focus on not only identifying existing risks but also anticipating and preventing future issues, which is essential for maintaining trust in an increasingly digital environment.

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