An optical system operating in the near or short-wave infrared wavelength range identifies an object based on water absorption. The system comprises a light source with modulated light emitting diodes operating at wavelengths near 1090 and 1440 nanometers, corresponding to lower and higher water absorption. The system further comprises one or more wavelength selective filters and a housing that is further coupled to an electrical circuit and a processor. The detection system comprises photodetectors that are synchronized to the light source, and the detection system receives at least a portion of light reflected from the object. The system is configured to identify the object by comparing the reflected light at the first and second wavelength to generate an output value, and then comparing the output value to a threshold. The optical system may be further coupled to a wearable device or a remote sensing system with a time-of-flight sensor.