$15 Fake IDs From Dark Web Bypass KYC On Exchanges

An online platform named OnlyFake is reportedly using artificial intelligence to produce fake identification documents, including passports and driver’s licenses, from 26 countries, with the intent to bypass cryptocurrency exchanges’ identity verification processes. Reports indicate that these forged documents have successfully fooled the KYC verification of several major crypto exchanges, including OKX, which has denied such allegations and is investigating the incident.

Key Takeaways

• A new online site named OnlyFake is using AI “neural networks” and “generators” to create fake identification documents. They only charge $15 per document, accepting payment in cryptocurrencies.
• OnlyFake produces replica driver’s licenses, identification documents, and passports from 26 countries, including the US, Canada, Britain, Australia, and several European countries.
• On Feb 5, 2024, 404 Media reported successfully fooling the KYC verification of crypto exchange OKX with a British passport photo created on OnlyFake. However, OKX denied the allegations and stated its commitment to fighting fraudulent conduct on its platform.
• OnlyFake denies manufacturing forged documents, claiming to produce templates for movies, TV shows, and illustrations.

A new online site is reportedly using artificial intelligence (AI) “neural networks” and “generators” to produce fake identification documents, passports, and driver’s licenses. The fake documents are allegedly being used to bypass crypto exchanges’ identity checks (KYC). 

Whether you want to use the Dark Web or the Clearnet to purchase these IDs, it’s available. They have a Telegram Channel proving the ability to create these driver’s license fakes within seconds.

The mastermind behind the website, known as “John Wick”, claims that the fake identity documents can bypass checks on all major crypto exchanges, including Binance, Kraken, Bybit, Huobi, Coinbase, OKX, and the Neobank Revolut.

OnlyFake.org generates replica driver’s licenses, identification documents, and passports from 26 countries, including the US, Canada, Britain, Australia, and several European countries. 

The site reportedly charges $15 per document and accepts payment in cryptocurrencies through Coinbase‘s commercial payment service.

What We Know About the Incidents

On Feb 5, 2024, 404 Media reported that it successfully fooled the KYC verification of crypto exchange OKX with a photo of a British passport created on OnlyFake. The ID document appeared to be resting on a bedsheet as if an image of it was produced.

OKX denied the allegations that it “condones, accepts, or disregards fraudulent conduct.” A spokesperson for the exchange said that “We are committed to aggressively fighting fraudulent conduct on our platform and seeking the highest standards of compliance.”The exchange is working with its teams and external partners to investigate the incident.

Screenshots from OnlyFake users appearing to have passed KYC at multiple exchanges using fake documents (Source: Cointelegraph)

OKX’s incident wasn’t the only one circulating in reports. Users on a Telegram channel allege that fake IDs purchased from OnlyFake were successful in passing checks on major exchanges like Bybit, Huobi, Kraken, and even PayPal.

A fake Australian passport using the details of former U.S. president Donald Trump

Creating a fraudulent document on the website reportedly requires less than a minute. All users are required to do is to upload an image or select one from a library. OnlyFake reportedly also offers image metadata spoofing for documents.

Image metadata spoofing allows users to forge the GPS location, data, time, and devices used to take an image. Identification services check such data to determine the authenticity of a document.

Crypto hackers and scammers are notorious for using methods to spoof information and gain access to crypto exchanges, while remaining hidden.

In 2022, blockchain security firm CertiK reported an underground KYC actor industry of individuals selling their identities for $8. These KYC actors would agree to be the verified face of fraudulent crypto projects and open crypto exchange accounts on behalf of the bad actors. 

Additionally, a Telegram channel posted several examples of fake driver’s licenses and passports appearing to be used for online verification. The post indicates that 100 fake IDs can be simultaneously created using Excel spreadsheet data.

Despite the numerous reports, OnlyFake denies “manufacturing forged documents as it is illegal.” The site claims that it only manufactures templates for use in movies, TV shows, and illustrations.

The Risks Associated With Fake IDs

Stolen credentials remain a hot commodity on the dark web, however, the introduction and widespread use of AI deep fake tools raises new concerns for the cryptocurrency world. Hackers and crypto scammers are potentially using these fake IDs to register new accounts, protecting their real identities and virtually becoming untraceable.

The current situation indicates the ongoing fight against fraud in the crypto world and the importance of adequate verification systems to prevent fraudulent activities and protect users’ information.

Jimmy Su, Binance’s Chief Security Officer, warned that there was an increase in scammers attempting to deceive exchange KYC checks with deep fake documents. He added that AI-generated videos would soon be convincing enough to fool human operators.