A new online service, OnlyFake, reportedly utilizing advanced artificial intelligence (AI) technologies, was successful creating counterfeit driver’s licenses and passports.
These fake IDs were used to pass Know Your Customer (KYC) checks on several cryptocurrency exchanges, raising significant security concerns.
What Happened: Priced at just $15 each, OnlyFake’s service generates highly realistic fake IDs from 26 countries, including the U.S., Canada, Britain, Australia and various European Union nations. The site accepts payments in multiple cryptocurrencies through Coinbase’s commercial payment service.
On Feb. 5, 404 Media reported a successful attempt to bypass the KYC verification process of the crypto exchange OKX using a British passport photo generated by OnlyFake.
When asked for a comment an OKX spokesperson told Benzinga the industry uses compliance vendors to screen IDs and that using fake IDs to bypass security was an industry-wide issue.
“OKX strongly denies any allegation, statement or implication that it condones, accepts, or disregards fraudulent conduct, and we are actively working with our internal teams and our external partner to investigate the allegations. We are committed to aggressively fighting fraudulent conduct on our platform and seeking the highest standards of compliance. It is apparent that the abusive use of AI to conduct fraudulent activity is an evolving and industry-wide challenge which OKX is comprehensively addressing,” the spokesperson added.
Benzinga has also reached out to Bybit, Bitget, and Coinbase for comments.
The image, seemingly taken on a bedsheet, was convincing enough to pass the exchange’s security checks.
Further evidence of the service’s effectiveness comes from a Telegram channel, where users of OnlyFake have shared their experiences using these AI-generated IDs to circumvent verification processes at various financial platforms. These include prominent crypto exchanges like Kraken, Bybit, Bitget, Huobi and the online payment system PayPal Holdings Inc (NASDAQ: PYPL).
Also Read: How Bitcoin ETFs Reshape The Investment Landscape: ‘Mega-Bullish Longer Term,’ Expert Tells Benzinga
Why It Matters: The emergence of such services poses a significant risk, particularly for the cryptocurrency sector. Scammers and hackers could potentially…
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