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According to the gridlines, deepfake fraud efforts in fintech increased by 700% in 2023, resulting in global losses of more than $43 billion from identity fraud. Imagine a scammer who uses a face-swapped video to pose as a real client and quickly obtain a loan approval. Or a cloned voice to tackle the verification process, these aren’t hypothetical anymore. In another case, an overseas cyber ring targets a finance app by replaying synthetic videos, evading the liveness checks and successfully creating dozens of bogus accounts. These attacks demonstrate how deepfakes have undermined trust in digital identity systems.
Fraud is no longer simply a risk in 2025; it is everywhere. Video KYC is now at the centre of a new conflict. Since it is scalable, regulatory compliance banks, fintechs, insurance companies and NBFCs have all adopted it. While this leads to institutions saving money, customers benefit from the flexibility of opening accounts online.
But deepfakes have altered the rules. Fraudsters use AI to superimpose faces, clone voices, and construct synthetic identities that appear and sound authentic. Meanwhile, ID R&D reported a tenfold increase in deepfakes internationally that year, with video KYC being one of the most exploited targets.
Deepfake-driven fraud attempts have risen by 900% in the last year alone, according to industry sources, making it one of the threats associated with digital identities that is growing the fastest.
Deepfakes: The New Weak Link in Video KYC
As deepfake technology gets more affordable and accessible, fraudsters are leveraging it on a larger scale. What was once considered futuristic deception is now a daily threat, with attackers utilising AI to impersonate appearances, voices and even entire identities. Here are their most common tactics:
- AI generated images and videos: Fraudsters create AI generated images and display them to verification systems.
- Face swap attacks: Faces are swapped or masked onto other videos or images to bypass verification
- Photo and video Replay attacks: Static pictures or pre recorded films are played back to fool liveness checks
- Voice cloning: Voices are cloned using only a few seconds of audio, avoiding voice-based verification
- Face Spoofing: AI generated masks are used during live video calls to spoof real users.
- Synthetic identities: Complete synthetic identities are created, including deepfake looks, sounds and documents.
Why Institutions Choose Secure ID to Stay Ahead
Secure ID by Cashfree Payments was designed for the emerging fraud scenario, going beyond compliance to actively prevent deepfakes. It enables institutions to onboard clients at scale while ensuring that synthetic identities will be stopped before they slip through.
Here’s how we do it:
- AI-powered deepfake detection analyses texture, motion, and lighting to detect lip-sync discrepancies, irregular blinking, and skin abnormalities that the human eye cannot see.
- Blocks pre-recorded images and videos, preventing fraudsters from bypassing checks using replays or overlays.
- Detects attempted voice cloning and compares biometric patterns to assure audio-visual consistency.
- Enhances fraud detection without sacrificing user experience by learning new fraud patterns.
Scaling Without Compromise
Video KYC has evolved into both the backbone of digital onboarding and a key target for fraudsters. The only way to prevent this is to implement a technology that matches the complexity of attackers. Secure ID’s native, regulatory-first and fraud-proof video KYC gives institutions the confidence to expand without compromise and it also safeguards revenue and opens the door to growth.
Deepfake detection in video KYC is the way of the future for onboarding the customers. Secure ID’s purpose-built solution assures inclusivity for all customers, whether they’re using a low-end device in a small village or in a metro with high-speed demands. With 99% fraud detection, 40% higher revenue impact, and onboarding times slashed to less than a minute, Secure ID is setting the new norm for secure digital identification in India.
Check out this link to book a demo today. See how an AI native video KYC stops frauds and accelerates your business growth.
Frequently Asked Questions (FAQs)
1. What is Deepfake fraud in Video KYC
Deepfake fraud in Video KYC refers to the use of AI-generated visuals, audio, or videos to mimic actual people during the Know Your Customer process. Fraudsters use techniques such as face replacement, voice imitation, or replay attacks to circumvent authentication and set up fraudulent accounts.
2. How does Secure ID prevent fraud during Video KYC?
Secure ID uses AI-driven deepfake detection that analyses subtle facial movements, synchronisation of lip movements, abnormal blinking patterns, and texture discrepancies that are not detectable by the naked eye.
3. Will Secure ID slow down the onboarding process?
No. Secure ID aims to strike a balance between preventing fraud and providing a good user experience. It shortens the onboarding duration to less than one minute while achieving a 99% accuracy rate in fraud detection.
4. Is Secure ID compliant with regulatory requirements?
Absolutely! Secure ID adopts a regulatory-first methodology to ensure complete adherence to RBI and SEBI regulations concerning Video KYC, while also incorporating an enhanced layer for fraud detection.
