The $15 AI-generated fake IDs are reportedly being used to avoid identity verification procedures on cryptocurrency exchanges, which might provide cryptocurrency hackers and con artists with a new tool.
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A new service has reportedly successfully passed know-your-customer checks on cryptocurrency exchanges. The service claims to use artificial intelligence (AI) “neural networks” and “generators” to produce fake driver licenses and passports. The service costs only $15 per person.
AI-generated fake IDs claimed to pass crypto exchange KYC are selling for $15
A new service claiming to use artificial intelligence (AI) “neural networks” and “generators” to create fake driver licenses and passports has reportedly succeeded in passing Know Your Customer (KYC). pic.twitter.com/ti3GmlEsAX
— CompleteApprise (@CompleteApprise) February 6, 2024
International reach
The website OnlyFake creates realistic fake driver’s licenses and passports from 26 countries. These countries include the United States, Canada, Britain, Australia, and multiple European Union countries. The website accepts payments in various cryptocurrencies through Coinbase’s business payments service.
On Feb. 5, 404 Media reported that it successfully bypassed the KYC verification of the crypto exchange OKX. They achieved this by using a photo of a British passport the outlet generated with the site, where the ID appeared to be laid on a bedsheet as if a picture of it were taken.
New: inside the underground site where "neural networks" churn out fake IDs
– I tested, made two IDs in minutes
– used one to successfully bypass the identity verification check on a cryptocurrency exchange
– massive implications for crime, cybersecurityhttps://t.co/hCjHWbKJPf pic.twitter.com/sd8ofmdEOE— Joseph Cox (@josephfcox) February 5, 2024
Concerns about cryptocurrency exchanges
The use of these fake documents has sparked concerns about how hackers and crypto scammers leverage them to open bank accounts and exchanges while hiding their real identities.
OnlyFake, an online service, is selling AI-generated fake IDs for $15, claimed to pass KYC checks on crypto exchanges like Binance, Kraken, and Coinbase. The service offers IDs for 26 countries, accepts crypto payments, and enables users to bypass identity verification at various…
— BlockVoyager (@BlockVoyagerAIO) February 6, 2024
According to OnlyFake’s pseudonymous owner, known as “John Wick,” these IDs can get around these KYC checks on popular exchanges such as Binance, Kraken, Bybit, Huobi, Coinbase, and OKX, as well as the crypto-accepting Neobank Revolut.
One of the affected crypto exchanges, however, OKX, firmly denied any complicity in or tolerance of fraudulent activities. Together with outside partners, they have started an investigation to find the cause of the problem and uphold strict compliance guidelines.
According to an OKX spokesperson, they are committed to aggressively fighting fraudulent conduct on their platform and seeking the highest compliance standards. The spokesperson, in addition, emphasized that the abusive use of artificial intelligence (AI) to conduct fraudulent activity is an evolving and industry-wide challenge that OKX is comprehensively addressing.
OnlyFake site refutes the claim
The OnlyFake site, however, claims that it doesn’t produce fake documents because it is illegal. Also, its terms state that its templates are only for use in movies, TV shows, [and] web illustrations.
Generating a fake document on the website takes less than a minute. This allows users to upload photos or select one from a preset selection.
OnlyFake additionally provides image metadata spoofing. This lets users change the device used to take the purported shot as well as the GPS position, date, and time. With the aid of this functionality, users can successfully pass identity verification services whose legitimacy is determined by such data.
Cryptocurrency scammers and hackers have long employed techniques to conceal their true identities while forging documents and gaining access to cryptocurrency exchanges.
Blockchain security company CertiK discovered an underground market in late 2022 where people were offering as little as $8 for the sale of their identities. In exchange, they would register bank and exchange accounts and serve as the verified face of fictitious cryptocurrency businesses.
Crypto scammers are using black market identities to avoid detection: CertiK: Crypto scammers have been accessing a “cheap and easy” black market of individuals willing to put their name and face on fraudulent projects — all for the low price of $8.00,… https://t.co/fpTNywxvpY
— Check Crypto News (@CheckCryptoNews) November 18, 2022
Executives in the cryptocurrency sector have expressed worries about the efficacy of video verification used in certain identity checks due to the ease and widespread availability of AI-deep fake techniques.
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