AI Data Breach Puts Millions at Risk of Identity Theft and Financial Fraud

A significant data breach related to two AI-powered apps revealed more than 120 crore KYC records and over 20 crore personal photographs and videos. Cybersecurity experts at Cybernews found the breach, raising major concerns about the security and privacy of AI applications. According to the report, the exposed datasets were kept unsecured and publicly accessible. The compromised data contained government-issued IDs, full names, phone numbers, email addresses, home addresses, and personal photographs provided by individuals. In certain situations, identification cards were directly connected to personal photographs and contact information. This causes the problem, increasing the possibility of identity theft and financial fraud.

The data purportedly belongs to customers from at least 26 nations, with the United States having the most affected individuals. However, users in Europe, Asia, and Latin America were also affected. While the unsecured databases were later taken down, experts are unsure whether attackers viewed or copied the information before it was secured.

What makes this AI data breach particularly concerning is the type of data implicated. Passports, driving licenses, and selfies are frequently used in KYC records to verify identification. Unlike passwords, these documents cannot be easily changed. Once released, they can be exploited for years in scams, impersonations, and bank fraud.

Researchers noted that the databases lacked basic security protections like password authentication. This suggests that the breach happened due to poor data management practices rather than a complex cyberattack. The companies behind the apps have not yet clearly explained how long the data was exposed or how many users were officially notified.

This incident highlights growing concerns about AI data privacy risks. As AI apps collect more sensitive personal data for verification and content generation, security must become a top priority. Experts say users should be cautious before uploading identity documents to new platforms. The massive KYC data breach is a strong reminder that while AI innovation is growing fast, strong cybersecurity practices are still essential to protect users’ personal information.

This article is based on information from Money Control