Forrester study says 69% institutions not equipped to identify AI generated KYC docuents

Mumbai: 69% of Indian organizations admit that their existing Know Your Customer (KYC) and identity-verification checks are simply not equipped to detect documents generated by Generative AI (GenAI), highlighting a widening gap in fraud defences, according to a report released by Experian and conducted by Forrester Consulting.
Identity verification has emerged as the most targeted security layer for businesses globally and in India, as digital interactions expand and fraud networks scale across borders. The study, based on a survey of nearly 1,000 senior fraud leaders, said traditional verification systems are struggling to match the speed and cost efficiency of modern fraud operations.
The report said 69% of Indian organizations lack the capability to detect AI-generated documents, allowing fraudsters to deploy deepfakes and manipulated credentials to bypass systems designed for an earlier technology environment.
Businesses are also reporting a rise in GenAI-linked risks. Around 65% of respondents said GenAI represents the most significant fraud threat seen so far, while 74% said they have observed an increase in GenAI-driven fraud attempts over the past year. According to the study, 57% of organizations are unable to determine whether GenAI was involved in a successful fraud incident, making it difficult to assess the financial impact.
The industry is shifting towards automated and behaviour-based systems as rule-based checks lose effectiveness. “Fraud was never a static challenge; it’s constantly evolving,” said Shail Deep, COO of Experian EMEA & APAC.
Companies are increasing investment in technology-led solutions, with 71% prioritising fraud technology over human analysts. The report said 83% of businesses are exploring passive fraud detection tools such as behavioural and device intelligence, which assess user interactions instead of relying only on documents.
Adoption of machine learning is also showing results. According to the study, 54% of organizations using such systems have reported improved detection accuracy, indicating a shift towards technology-driven fraud prevention.


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