When OpenAI dropped the ChatGPT-4o update, most people were captivated by its ability to turn simple prompts into stunning Studio Ghibli–style artwork, photorealistic portraits, and even UI mockups instantly. Social feeds are flooded with prompts like “change this image to a Ghibli-style image” or “generate a Pixar-style character with green eyes and a leather jacket.” It was delightful. But under the surface of all this fun, a darker reality is brewing. That same power, prompt-to-image generation, is now fueling a surge in AI-generated document fraud in India. What looks like a celebration of creativity is also unlocking the tools for forging PAN cards, payslips, UPI receipts, and even medical bills, with terrifying accuracy.

This isn’t a theoretical threat. It’s already happening. A recent investigation uncovered over 167,000 fake Indian identity documents created through AI tools, many of which included PAN and Aadhaar cards used to exploit KYC loopholes. This staggering number reveals just how widespread and industrialized identity fraud has become.

In fact, multiple HR teams across metro cities like Bengaluru, New Delhi, and Mumbai have reported receiving doctored payslips and fake degrees weekly, often created using AI tools. The ease and accessibility of AI-generated image tools have made document fraud a scalable problem.

Below, we spotlight five outrageous examples of AI-generated document fraud that can plague India - from fake PAN cards to forged payslips.

1. PAN Card Fraud – Identity Theft with AI-Generated PANs

PAN cards are a cornerstone of identity verification in India. But now, a fraudster can ask an AI tool to “Generate a realistic PAN card with name Ankit Sharma, DOB 02/05/1993, PAN Number ASRPS9821G.” The AI tool can create a digitally rendered PAN card that has every visual detail - from layout and fonts to the hologram effect. This kind of image could easily be used to open a bank account, get a SIM card, or commit identity fraud.

Traditional verification methods that rely on visual inspection or simple uploads wouldn’t detect anything amiss. That’s where intelligent, real-time identity verification steps in, by not just reading the image but matching the data within it to official sources like NSDL and identifying inconsistencies.

2. UPI Receipt Fraud – Fake Payment Proofs to Scam Businesses

Digital payments via UPI are ubiquitous, and so are payment confirmation screenshots as proof. Scammers can exploit this by generating bogus UPI payment receipts to deceive merchants and service providers. For example, an AI could be instructed: “Create a Google Pay payment receipt of ₹15,000 paid to ‘Kiran Electricals’ with transaction ID and timestamp.” The unsuspecting shop owner sees what looks like a valid payment confirmation and hands over the goods, only to realize later that no money was received.

The fake image looks so genuine that business owners are delivering products and services without a second thought. Verifying the actual existence of that UPI transaction through mobile-linked metadata and live UPI ID checks. However, when verification systems go beyond visuals and validate payment identity and account linkage, they expose the deception immediately.

3. Education Degree Certificate Fraud – Forged Degrees to Land Jobs

Job seekers can turn to AI to forge educational certificates. Imagine a candidate with no real engineering degree prompting an AI: “Generate a Bachelor of Engineering degree from Mumbai University, awarded in 2018, with official seal and signatures.” The goal is to pass HR checks and secure a job with a fabricated credential. In India’s competitive job market, this form of fraud is on the rise as people try to fake qualifications for a career boost.

As a matter of fact, hiring platforms estimate that nearly 1 in 30 applicants submit questionable educational records. In such cases, verification needs to go beyond certificate design. Matching degree claims with actual employment history or UAN records provides far more dependable validation.

4. Medical Bill Fraud – Fake Hospital Bills for Insurance Claims

Medical reimbursements and insurance claims often accept scanned hospital bills as proof of expense. Fraudsters can exploit this by using AI to forge hospital invoices for treatments never received. For instance: “Generate a hospital bill from XYZ Hospital, Delhi, dated 12 March 2024 for ₹38,500.” With a convincing fake bill, someone might claim a refund or insurance payout they’re not entitled to, defrauding employers or insurers. These fakes can easily be snapped via phone and submitted through HR portals.

Recent HR audits at mid-sized companies have uncovered dozens of these suspicious submissions, some linked to the same hospitals across different cities. These scams can drain thousands from reimbursement budgets if not caught early. Modern verification tools extract invoice metadata and check hospital legitimacy, issuance patterns, and claim history to stop false reimbursements.

5. Payslip Fraud – Falsified Income to Get Jobs or Loans

Whether applying for a new job or a hefty loan, some individuals inflate or fake their income proof. AI now makes it trivial to create a phony payslip from a top company to misrepresent one’s salary. For example: “Create a payslip for February 2024 showing a ₹92,000 monthly salary, with deductions and net salary.” With such a fake payslip, a person might secure a higher loan amount or impress recruiters with a salary they never actually earned. A well-crafted fake payslip can help someone land a higher-paying job or a bigger loan.

These AI-generated documents mimic company templates with accuracy, logos, payroll structure, deductions, and even manager sign-offs. At face value, they seem legitimate. But real income verification doesn’t rely on documents alone. By pulling salary data directly (with user consent) from payroll systems and comparing it with OCR-extracted payslip details, inconsistencies stand out immediately. If a candidate claims to work at an organization, but payroll sync shows no trace, the deception ends right there.

The Future of Verification is Beyond Images

We’re entering an era where a photo or PDF isn't proof; it’s a prompt away from being a forgery. As AI tools like ChatGPT-4o make hyper-realistic document generation as easy as typing a sentence, businesses must rethink what verification really means. The shift from “seeing is believing” to “data is trust” is no longer optional; it’s mission-critical.

The good news is that businesses and institutions can fight back by moving to multi-source digital verification. Instead of eyeballing documents, solutions like TartanHQ’s Verification Suite verify data at the source, whether it’s a government database, a payment network, or an employer’s HR system. By cross-checking information in real time and using intelligent OCR to parse document content, TartanHQ helps ensure that what you see is backed by what’s true.