Ahmedabad police have detained four individuals for allegedly using artificial intelligence (AI). The group generated deepfake videos using AI to bypass Aadhaar-based biometric verification and secure fraudulent loans.

The case highlights rising concerns about the misuse of digital identity in India.

“The accused created manipulated videos and synthetic identities to impersonate genuine Aadhaar holders. These were then used to complete KYC checks and break through instant loan services from digital lending platforms.”

-said investigators

The arrests were made following complaints linked to suspicious loan activity and identity misuse.

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How the Deepfake Aadhaar Fraud Was Carried Out

Police said the group relied on AI tools to generate realistic video overlays and mimic facial movements. These deepfake videos were used during e-KYC processes that require live facial verification.

The accused allegedly obtained Aadhaar details unlawfully and paired them with fabricated visuals to bypass the verification process.

This gave them a bypass of the biometric checks without the original Aadhaar holder being physically present.

The fraud exploited gaps in remote onboarding systems used by fintech platforms. Multiple loan applications were processed using the same method, raising red flags among lenders, the officials added.

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Crackdown Highlights Growing Risks in Digital Lending and KYC Systems

The case has highlighted vulnerabilities in India’s fast-growing digital lending ecosystem. Authorities said such fraud is becoming more sophisticated, with AI tools that make detection harder.

Ahmedabad police are now examining links to wider networks and additional cases. Devices used in the operation have been seized for forensic analysis.

The incident occurred while increased scrutiny is being placed on Aadhaar-enabled services and amid calls for stronger safeguards in biometric authentication & video-based KYC.

Industry experts say tighter verification protocols and AI detection tools are important to prevent similar breaches in the future.