AI vs fake documents the future of verification

Fake documents and rubber stamps are not the only things that can be used for identity theft. It has turned into deepfakes, fake IDs, and digital tricks that can get by human checks. As India’s economy goes digital on a large scale, being able to reliably verify identity and documents has become significant.

By 2029, the global market for identity verification is expected to be worth $23.49 billion. The rise of digital transactions is only one aspect that is driving this expansion. There is also a need to safeguard people and businesses against fraud, which, in its absence, makes people lose faith in government and financial systems.

Banks are gearing up for AI

For banks, verification is both a way to protect themselves and a way to improve the customer experience. Customers are more likely to be victims of fraud when there are gaps in oversight and manual processes that slow down account openings. AI systems can now analyze thousands of papers in seconds and find small differences in fonts, backgrounds, or metadata that one would miss.

Banks have altered how they provide services. Speed and safety are no longer at odds with each other. AI-powered verification makes it possible for both, and it also cuts expenses. Not only are Indian banks using these techniques to reduce fraud, but they are also making client interactions more personal and efficient. Customers are starting to see banking differently; there is less paperwork, it is easier to access, and they do not have as many questions about security.

Land records use of AI in high-stakes reform

Land ownership is still one of the most cumbersome and long-drawn issues in India. Property is the main way that most families preserve their wealth, but proving ownership can be slow, complex, and easy to change. Digitizing land records with AI-based verification can make property data more accurate and easier to find. The GIS land bank and other systems like it are a step toward cutting down on arguments and guesswork in real estate. AI could help stop people from taking advantage of weaknesses in old systems by verifying documents and correlating records to real digital identities.

The benefits go beyond just buying and selling property. To get people to invest, make it easier to get a mortgage, and build trust in rural credit markets, land records need to be clear and trustworthy. But if digitization goes ahead without strict inspections, there is a chance that old problems will be carried over to new digital systems. So, AI-based verification needs to be created with responsibility, not just automation.

Onboarding and financial inclusion

Business Correspondents (BCs) bring financial services to places where there are no formal branches. In the past, onboarding these agents took a long time because documentation had to be checked manually, financial histories had to be reviewed, and agreements had to be signed. AI automation now pulls out information, points out errors, and uses facial recognition to confirm identities. With eSign and eStamping, onboarding that used to take days can now be done in hours.

Faster onboarding means that rural clients who depend on these agents for basic services can get to them more quickly.

Secure verification is also very important for government-supported inclusion programs. The Pradhan Mantri Jan Dhan Yojana (PMJDY), the Pradhan Mantri Suraksha Bima Yojana (PMSBY), and the Unified Payments Interface (UPI) all need verification systems that can work on a large scale without making mistakes too often. AI helps these programs reach more people who need them by automating compliance checks and lowering operational costs. But mistakes in these systems can also lead to exclusion, which shows how important it is to check and test them often.

Cyber fraud and constant adaptation

Fraudsters have realized that AI verification is becoming more popular. Even the most modern systems can now be fooled by deepfake videos, biometric spoofing, and digital forgeries. This makes it a never-ending race between verification technologies and the threats they try to stop. Banks and other financial organizations, as well as government bodies, cannot think of adopting AI as a one-time upgrade. It is necessary to make regular changes, refresh the training data, and connect with threat intelligence networks. A static system, however advanced, becomes vulnerable once attackers discover its patterns.

Finding the proper balance

AI has made verification quicker, more accurate, and in many situations, easier to access. It has helped banks deal with fraud, made it easier for governments to provide services, and allowed new businesses into a growing global market. But the technology does not guarantee safety. It only works when there is open governance, regular checks, and systems that can learn and change.

India has a lot at stake because financial inclusion and digital governance are very important to the country. Verification failures are more than just technical problems; they can keep people who need it most from getting banking, healthcare, or assistance. The way forward is to see AI as an enabler.

Authored By~

Shikhar Aggarwal, Chairman, BLS E-Services Ltd

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