AI-generated $15 fake ID is reportedly being used to circumvent identity verification procedures at crypto exchanges, potentially giving crypto hackers and scammers another tool There is.
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It has been reported that the new service has passed the crypto exchange's customer verification checks. The service claims to use artificial intelligence (AI) “neural networks” and “generators” to create fake driver's licenses and passports. The fee for the service is only $15 per person.
AI-generated fake ID that claims to have passed cryptocurrency exchange KYC goes on sale for $15
A new service that claims to use artificial intelligence (AI) “neural networks” and “generators” to create fake driver’s licenses and passports has reportedly been successful in passing know-your-customer (KYC) procedures. Masu. pic.twitter.com/ti3GmlEsAX
— CompleteApprise (@CompleteApprise) February 6, 2024
The website OnlyFake creates realistic-looking fake driver's licenses and passports for 26 countries. These countries include the United States, Canada, the United Kingdom, Australia, and several countries in the European Union. This website accepts payments in various cryptocurrencies through Coinbase's Business Payments service.
February 5th at 404 Media report It means that they succeeded in bypassing the KYC verification of the cryptocurrency exchange OKX. They achieved this by using British passport photos generated by this site. The ID was placed on the bed sheet and looked as if it had been photographed.
New: Inside the underground site where a “neural network” churns out fake IDs
– Tested and created 2 IDs in minutes
– Used to bypass identity verification checks on cryptocurrency exchanges
– Significant impact on crime and cybersecurityhttps://t.co/hCjHWbKJPf pic.twitter.com/sd8ofmdEOE
— Joseph Cox (@josephfcox) February 5, 2024
Concerns about virtual currency exchanges
The use of these fake documents has raised concerns about how hackers and crypto fraudsters use them to open bank accounts and exchanges while hiding their true identities.
Online service OnlyFake sells AI-generated fake IDs for $15, claiming to pass KYC checks from crypto exchanges like Binance, Kraken, and Coinbase. The service provides IDs for his 26 countries, accepts payments in cryptocurrencies, and allows users to bypass identity verification in various locations.
— BlockVoyager (@BlockVoyagerAIO) February 6, 2024
According to the owner of the OnlyFake pseudonym known as “John Wick,” these IDs pass KYC checks on popular exchanges such as Binance, Kraken, Bybit, Huobi, Coinbase, OKX and Neobank Revolut, which accepts cryptocurrencies. It is said that it can be avoided.
However, OKX, one of the affected cryptocurrency exchanges, categorically denied being complicit in the fraud or condoning any wrongdoing. Working with external partners, we launched an investigation to determine the cause of the issue and adhere to strict compliance guidelines.
According to an OKX spokesperson, OKX is committed to aggressively combating fraud on its platform and pursuing the highest compliance standards. The spokesperson further emphasized that the misuse of artificial intelligence (AI) to commit fraud is an evolving, industry-wide challenge that OKX is addressing comprehensively.
OnlyFake site denies this claim
However, the OnlyFake site claims it does not create fake documents because it is illegal. The terms also state that the templates can be used for movies, TV shows, [and] Web illustration.
Generating a fake document on a website takes less than a minute. This allows users to upload a photo or select one from a selection of presets.
OnlyFake additionally provides image metadata spoofing. This allows users to change not only the GPS location, date, and time, but also the device used to take the intended shot. This feature allows users to successfully pass identity verification services whose legitimacy is determined by such data.
Cryptocurrency scammers and hackers have long used techniques to disguise their true identity when forging documents and accessing cryptocurrency exchanges.
Blockchain security company CertiK discovered an underground market in late 2022 where people were offering as little as $8 to sell their identities. Instead, they will register bank or exchange accounts and act as the authenticated face of the fictitious cryptocurrency business.
Cryptocurrency scammers are using black market identities to avoid detection: CertiK: Cryptocurrency scammers are using “cheap and easy” ” Accessing the black market. All for the low price of $8.00… https://t.co/fpTNywxvpY
— Check Crypto News (@CheckCryptoNews) November 18, 2022
Crypto industry executives have expressed concern about the effectiveness of video verification used to verify certain identities, as AI-based deepfake technology has become easily and widely available.