How safe is VKYC?

I heard an incident from a family relative where someone used KYC documents to get a loan. Long story short: The fraudster somehow knew PAN and Aadhaar Number using which a fraudster (still not known) sanctioned a loan of 50k from Dhani. It was never paid, and the party never came to know about it until my relative was not able to get loan because of bad CIBIL score. Upon checking with CIBIL data and cont. followup from Dhani the person got to know about how someone morphed his own photo on PAN and Aadhaar card. Even the phone number was unknown and useless. 

I never use PAN card as a document of proof anywhere but there are some places where you are forced to share these details: 

1. Banking operations like opening accounts. 
2. Buying/Selling/Renting property. 
3. Mediclaim. 
4. Buying Fine Jewlery with cash/old gold. 

Now thinking about this, the VKYC process I did recently got stuck in my head? So, what is the process? 

1. The web application is loaded and browser most likely to have permissions for camera, mic and location. 
2. There is a pop up to ask users to allow usage of hardware and soon a video call is in progress. 
3. Customer care greets you and asks for location permission. 
4. They then inform us no one else should be whispering and only you should be answering the questions looking into camera. 
5. He then switches the camera and asks us to sign on blank page in front of the camera collecting knowledge on how we sign. 
6. After getting us to speak our Name, DOB and Mothers Name he asks us for PAN. The clicked photo is matched with Aadhaar and PAN card. 
7. He then confirms the process is over and it will take an hour to reflect. 

So in span of 5 mins, we provide Location, Video with Audio (Can be used for Deepfake), Signature and obviously the PAN and Aadhaar data. Now to top it all there are apps which facilitate online FD account opening which opens web app within their app and can record screen activity. These apps can replicate the process on behalf of us using deepfake to get loans and later default on us. Though the Aadhaar OTP linking has made the process difficult but there are ways to get loans without Aadhaar verification. If someone from the government is reading this, please make the process so stringent that it leaves no chance for fraudsters.