AI Tool Enables Creation of Fake IDs for Bypassing Verification
In order to trade cryptocurrencies on major crypto markets, investors are typically required to go through a Know Your Customer (KYC) verification process and provide valid identification (ID) documents. However, technological advancements in artificial intelligence (AI) pose a threat to this current model. A new AI-based tool called OnlyFake now allows people to create realistic fake IDs within minutes for $15, as reported by 404 Media.
Joseph Cox, co-founder of 404 Media and journalist, tested the tool and successfully bypassed the verification check on OKX. This development has massive implications for crime and cybersecurity.
OnlyFake Capable of Generating Over 20,000 Fake IDs Daily
OnlyFake claims to have the capacity to generate over 20,000 fake IDs per day. At full capacity, this would result in daily revenue of $300,000 for its developers. Despite the possibility of mistakes in some pictures, the overall quality of the fake IDs is very realistic.
Cryptocurrency exchanges like Kraken are considering measures to prevent users from bypassing verification with AI-generated fake IDs. Others are exploring longer and more complex KYC methods, such as real-time video calls.
The Challenges Faced by Honest Users
Honest users may encounter difficulties accessing high-liquidity markets due to increased verification requirements. These requirements also expose users to data leaks, leading some individuals to avoid these services altogether. Meanwhile, criminals and those unconcerned about following regulations can exploit technological advancements and bypass KYC mechanisms.
It is crucial to note that faking IDs is a crime in all jurisdictions. Service providers and users who attempt to bypass KYC mechanisms may face legal action.
Hot Take: The Impact of AI on KYC Verification
The development of an AI tool that can generate fake IDs to bypass verification poses significant challenges to the current KYC model. While this advancement may benefit criminals and those seeking to evade regulations, it raises concerns about crime and cybersecurity.
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