Crypto hackers and fraudsters have long employed methods to fake information and gain access to crypto exchanges while concealing their true identities. However, word has recently surfaced of an entirely new way to bypass verification procedures: enter artificial intelligence.
Fake IDs, priced at a mere $15 and generated by AI, are being used to fool identity checks on cryptocurrency exchanges, potentially granting crypto hackers and scammers a new advantage.
An underground service OnlyFake utilizes “neural networks” to craft high-quality counterfeit identity documents, and according to a report by 404 Media, anyone can obtain instantly generated fake IDs with astonishing realism, potentially facilitating a whole range of illegal activities.
The OnlyFake website generates realistic fake driver’s licenses and passports from 26 countries, including the USA, Canada, UK, Australia, and a bunch of EU nations, all while accepting payments in multiple cryptocurrencies through the commercial payment service Coinbase.
Crafting a counterfeit document on the site takes less than a minute. Users can upload their own photo or opt for a randomly selected one from the “personal drop library, without using a neural network,” as per Cointelegraph.
The corresponding Telegram channel has posted dozens of examples of fake driver’s licenses and passports, seemingly laid out on kitchen countertops, bedsheets, rugs, and desks, just as someone might perceive them if used for an online check.
OnlyFake also offers metadata manipulation for images, allowing users to fake GPS location, date, time, and device where the supposed photo was taken, as some identity verification services check such data to determine authenticity.
The original OnlyFake Telegram account, the main hub for client dealings, got the boot. But the new account announces the end of the Photoshop era, boasting the ability to mass-produce documents using cutting-edge “generators.” The site owner, going by the nickname John Wick, declared that the service can generate hundreds of documents in batch mode from an Excel dataset.
The Service has already Deceived the OKX Crypto Exchange
The images are so top-notch that 404 Media managed to sidestep OKX’s KYC measures, a crypto exchange that uses the third-party verification service Jumio to authenticate its clients’ documents. A cybersecurity researcher told the news outlet, revealing that users were submitting OnlyFake IDs to open bank accounts and unlock their crypto accounts.
An OKX representative told Cointelegraph that the company denies any accusations or hints that it “approves, accepts, or turns a blind eye to fraudulent behavior” and is working with its teams and external partners to investigate the report.
We’re actively combatting fraudulent activities on our platform and striving for the highest compliance standards. Abusing artificial intelligence for fraudulent activities is a growing problem across the industry, one that OKX is tackling comprehensively.
Criminals Won’t go Unnoticed
In late 2022, blockchain security firm CertiK discovered a dark online market where individuals were selling their personal data for $8, agreeing to act as verified faces for fraudulent crypto projects, and opening bank and exchange accounts on behalf of attackers.
For those looking to avoid the need to use their real identity, OnlyFake might seem enticing. But using this service comes with ethical and legal dilemmas. Under the mask of anonymity and the allure of easy access, these operations stand on very shaky ground.
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As it distributes fake identity credentials from multiple countries, including the USA, Italy, China, Argentina, Czech Republic, and Canada, this openly criminal enterprise has undoubtedly caught the attention of law enforcement agencies worldwide.
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