APIs failing in AWS with 500 Internal server error when authorizer is configured

Serverless Framework
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1

Hello, I have a simple handler with lambda authorizer configured. The handler works fine in offline. But in AWS, it is failing with 500 Internal Server error. The handler works fine in AWS if authorizer is not configured in serverless YML.

Handler

module.exports.hello = async (event, context, callback) => {
        const responseBody = {
            "key3": "value3",
            "key2": "value2",
            "key1": "value1"
        };
        const response = {
            "statusCode": 200,
            "headers": {
                "my_header": "my_value"
            },
            "body": JSON.stringify(responseBody),
            "isBase64Encoded": false
        };
        return response;
    };

Serverless YML Functions

functions:
  authorize:
    handler: handlers/authHandler.authenticate
  hello:
    handler: handlers/helloHandler.hello
    events:
      - http:
          path: hello
          method: get
          cors: true
          authorizer: authorize
2

If you add some logging to your authenticate function, is it successfully returning a well formed IAM policy?