A crypto exchange is selling ‘forged’ fake IDs that claim to have passed KYC for $15.
A new service called Know Your Customer (KYC) that uses artificial intelligence “neural networks” and “generators” to create fake driver's licenses and passports is said to be able to bypass checks on several crypto exchanges.
The cost? Only $15 a pop.
The website Onlifefaq generates real fake driver's licenses and passports from 26 countries, including the US, Canada, Britain, Australia and several EU countries, and pays in multiple cryptocurrencies through Coinbase's trade payments service.
404 Media reported on February 5 that OKX had successfully bypassed Know Your Customer (KYC) verification created with the site using a British passport photo – with the ID apparently placed on a bed sheet. The photo is taken.
It said OKX system is verifying my identity. Then he approved it. There you go: successfully create a cryptocurrency account with a fake name, fake ID. The face is mine (I don't want to call it innocent) but the site says it will launch AI faces pic.twitter.com/VlyIb2EbDE
— Joseph Cox (@josephfcox) February 5, 2024
A Telegram channel spotted by Cointelegraph shows users of the site sharing their success using their credentials to bypass authentication at various crypto exchanges and financial services providers, including Kraken, Bybit, BitGate, Huobi and PayPal.
The service can be a boon to crypto fraudsters and hackers who use fake documents to open exchanges and bank accounts, making it difficult to protect and trace their true identities.
The sole owner of the pseudonym – “John Wick” – told 404 Media that his IDs can pass KYC checks with Binance, Kraken, Bybit, Huobi, Coinbase and OKX and crypto-acceptor Neobank Revolt.
The OnlyFake website, however, says it “does not produce fake documents as it is illegal” and its terms state that “templates are only for use in movies, TV shows [and] Web graphics.
It is understood that generating a fake document on the site takes less than a minute. According to a Telegram post spotted by Cointelegraph, users can upload their own photo or a randomly selected one “without using a private library of droplets and a neural network.”
An associated Telegram channel has dozens of fake driver's licenses and passports spread out on kitchen tables, beds, carpets and desktops – similar to how you'd get them from someone used for online authentication.
The article states that 100 fake IDs can be created at once using Excel spreadsheet data.
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OnlyFake also offers some identity verification services to spoof the image metadata of the GPS location, date, time and device – such as a phone – that took the alleged photo.
Crypto hackers and fraudsters have long been using methods to falsify information and gain access to crypto exchanges while hiding their true identity.
In the year In late 2022, blockchain security firm Certike exposed an online black market of individuals selling their identities for as little as $8 – agreeing to act as fronts for fraudulent crypto projects and open banks and exchange accounts on behalf of malicious actors.
The ease with which AI deep forgery tools can be found has also raised concerns from crypto industry executives about the effectiveness of video verification used in some identity checks.
Binance Chief Security Officer Jimmy Su told Cointelegraph in May 2023 that fraudsters trying to exchange KYC checks using deep fakes are on the rise and warned that the videos will soon be convincing enough to fool human operators.
Cointelegraph reached out to Coinbase for comment on its service using its trading product, but did not immediately receive a response.
Binance, OKX, Kraken, Bybit, Bitget, Revolut, Huobi and PayPal did not immediately respond to requests for comment on users who said they had passed their identity verification.
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