Deceptive KYC Verification: OnlyFake’s AI-generated Fake Identity Documents Successfully Fool Multiple Exchanges

Deceptive KYC Verification: OnlyFake's AI-generated Fake Identity Documents Successfully Fool Multiple Exchanges

Deceptive KYC Verification: OnlyFake's AI-generated Fake Identity Documents Successfully Fool Multiple Exchanges

According to a report from “404 Media,” a new service claiming to use artificial intelligence “neural networks” and “generators” to create fake identity documents such as driver’s licenses and passports has successfully produced fake identity documents and passed KYC verification at multiple cryptocurrency exchanges.

The website, called OnlyFake, reportedly has the ability to generate fake driver’s licenses and passports from 26 different countries, including the United States, Canada, the United Kingdom, Australia, and multiple EU countries, within a minute. It accepts payment in various cryptocurrencies through Coinbase’s merchant payment service, with a cost of only $15.

Joseph, co-founder of 404 Media, revealed that he used OnlyFake’s service to create a fake identity and successfully deceived the KYC system of the OKX exchange.

Despite OnlyFake’s claim on its website that it does not “produce counterfeit documents because it is illegal,” and its terms of service stating that the generated templates are only intended for “movies, TV shows, and internet illustrations,” many users have shared their successful experiences of bypassing KYC at exchanges using OnlyFake in online communities. Some users even generated 100 fake identities simultaneously using Excel spreadsheet data.

Even John Wick, the anonymous owner of OnlyFake, stated that these fake identities can bypass KYC verification at exchanges such as Binance, Kraken, Bybit, Huobi, Coinbase, OKX, and the cryptocurrency-accepting neobank Revolut.

The maturity of AI technology will pose a serious challenge to KYC systems on platforms, including exchanges. Jimmy Su, Chief Security Officer at Binance, had previously warned in May 2023 that deepfake technology is becoming increasingly advanced and will become a major problem for KYC verification at exchanges.

Related report: “Hidden dangers of AI technology development! Binance Chief Security Officer: Deepfake poses an increasingly serious threat to KYC verification at exchanges.”