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The Delhi High Court has ordered nationwide mandatory biometric Aadhaar authentication for all new GST registrations, responding to widespread misuse of stolen PAN and Aadhaar data for fraudulent registrations. The court's directive aims to prevent tax evasion and protect innocent citizens from harassment, leveraging AI-based biometric verification systems.[AI generated]
Why's our monitor labelling this an incident or hazard?
The biometric Aadhaar authentication system is an AI system as it involves biometric data processing for identity verification. The misuse of stolen biometric and PAN data to obtain fraudulent GST registrations has directly caused significant financial harm (tax evasion) and harm to innocent citizens (harassment). The court's order highlights that the insufficient implementation of biometric authentication has allowed these harms to occur. Therefore, the event involves the use and malfunction (or insufficient use) of an AI system leading to realized harm, fitting the definition of an AI Incident.[AI generated]