OnlyFake’s Artificially Intelligent Fake IDs Pose Threat to Crypto Exchange Security
crypto exchange KYC requirements : OnlyFake, a newly launched service in the cryptocurrency space, has caused waves of disruption by purporting to use artificial intelligence “neural networks” and “generators” to generate realistic fake driver’s licenses and passports that have passed Know Your Customer (KYC) checks at various cryptocurrency exchanges.
OnlyFake Offers Seamless KYC Bypass at an Affordable Cost
With only $15, users on OnlyFake can obtain fake IDs from 26 countries including the U.S., Canada, Britain and Australia as well as various European Union nations. Coinbase’s commercial payments service accepts payment in various cryptocurrencies that make payment easy while showing its effectiveness in bypassing KYC verifications on popular exchanges.
Successful KYC Bypass Incidents On April 4th 404 Media reported on an OKX KYC bypass using fake passport photos generated through OnlyFake. A Telegram channel associated with the website showed users sharing their success using these fake IDs to bypass verification on cryptocurrency exchanges such as Kraken, Bybit, Bitget and Huobi as well as financial service providers such as PayPal.
Misuse and Security Threat OnlyFake provides its services primarily for movie, TV show and web illustration use; however, security professionals remain concerned about potential misuse by crypto scammers and hackers. Its ease of acquiring counterfeit IDs could allow malicious actors to open exchange and bank accounts in their name while disguising their true identities to circumvent tracking efforts and conceal accounts with no traceable trail.
OnlyFake’s Controversial Stance
OnlyFake, led by its anonymous founder “John Wick,” recently made controversial claims to 404 Media that its fake IDs could bypass KYC checks at major exchanges and the cryptocurrency-friendly neobank Revolut. However, OnlyFake maintains that their company does not manufacture fake documents illegally – with their templates simply intended for cinematic use.
AI-Generated IDs and Metadata Spoofing
Producing fake documents using OnlyFake can reportedly take less than a minute. Users can upload their photo or randomly choose one from a library. Furthermore, OnlyFake allows for metadata spoofing which enables users to falsify GPS location, date/time information, device details etc – an essential feature since some identity verification services rely on such details for authenticity purposes.
Industry Issues and Instances
The cryptocurrency industry has experienced numerous difficulties with identity verification and security breaches, such as when CertiK uncovered an online black market where individuals sold their identities for as little as $8 to act as fronts for fraudulent crypto projects. Furthermore, AI deep fake tools have raised doubts regarding video verification’s efficacy for identity checks; industry executives warn against them potentially tricking human operators with convincing deep fakes that can fool identity checks.
Cointelegraph reached out to Coinbase, Binance, OKX, Kraken, Bybit, Bitget, Revolut, Huobi and PayPal for comment on OnlyFake but did not receive immediate replies. Crypto community stakeholders await answers from these platforms regarding potential KYC bypass incidents or security risks posed by AI-generated fake IDs.