Home Editor's Pick OnlyFake: Underground Site Churns Out AI-Generated Fake IDs to Dupe Crypto Exchange KYC

OnlyFake: Underground Site Churns Out AI-Generated Fake IDs to Dupe Crypto Exchange KYC

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An anonymous site named OnlyFake is claiming to utilize “neural networks” to create fake driver’s licenses and passports from over 25 countries for just $15. It has already been used to bypass Know Your Customer (KYC) checks at various crypto exchanges, raising alarms around identity fraud.

TLDR

A site called OnlyFake offers fake IDs and passports from 26 countries generated using “neural networks” for just $15 per document.
The site has been used to successfully bypass Know Your Customer (KYC) checks at crypto exchanges like OKX, Kraken, Bybit, and others.
It generates realistic images of IDs on backgrounds like carpets and countertops to mimic verification photos. Metadata can also be spoofed.
OnlyFake’s owner claims hundreds of fake IDs can be produced at once using Excel data and the era of Photoshopped documents is ending.
The easy access to convincing fake IDs raises concerns around streamlining identity fraud and money laundering using crypto exchanges and neobanks.

As reported by cybersecurity journalist Joseph Cox, OnlyFake generates realistic images of IDs on backgrounds like fabrics and countertops to mimic the verification photos asked by many online services. Metadata can also be spoofed to match details like GPS location with the forged document.

The entire process takes only minutes, allowing anyone to obtain high-quality fake IDs instantly compared to the manual effort of forging physical documents.

According to OnlyFake’s owner “John Wick”, the IDs have been used to pass verification checks at major crypto exchanges including OKX, Binance, Coinbase, Kraken, Bybit and Huobi.

Cox himself used a fake British passport image from OnlyFake to successfully get approved in OKX’s KYC process. This indicates a concerning vulnerability, especially given OKX’s prominence in recent legal cases around large-scale crypto fraud.

The fake passport generated by David Cox, Image from 404Media

The widespread availability of such fake identity documents flags serious concerns around their misuse for criminal activities. Identity fraud could be severely exacerbated leading to streamlined money laundering, tax evasion, and regulatory bypass especially via cryptocurrency channels.

OnlyFake’s owner shamelessly markets the IDs as capable of passing KYC checks at various crypto platforms and online banks, indirectly promoting their misuse despite simultaneously claiming an anti-forgery policy.

AI-generated identities can become lucrative loopholes that undermine due diligence efforts by financial institutions and crypto businesses. With nearly untraceable fake credentials just a click away, this heralds a challenging era for KYC and compliance procedures.

As AI replication of identity documents gets increasingly sophisticated, crypto exchanges and cross-border payment services need to double down on security.

Introducing multi-factor and behavioral authentication, liveness checks, forensic document verification, and enhanced due diligence on source of funds are some measures that could counter the mounting threat of AI-generated fake profiles.

With $15 and a couple of minutes all that’s now needed to generate credentials appearing to be from almost any country.

The post OnlyFake: Underground Site Churns Out AI-Generated Fake IDs to Dupe Crypto Exchange KYC appeared first on Blockonomi.

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