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Attackers use AI-based software to bypass strict KYC measures on cryptocurrency exchanges. This is stated in a report by security firm Cato Networks.
The tool, called ProKYC, demonstrates a "new level of sophistication" in crypto fraud. It represents a significant step up from the older methods that cybercriminals used to bypass two-factor authentication and KYC.
Instead of buying fake IDs, scammers use AI-powered tools to create brand-new documents and fake videos to go through facial recognition.
ProKYC is specifically configured to work with crypto exchanges and financial companies whose KYC protocols involve matching a webcam face with a government document.
In the published video, the user integrates the AI-generated face into the Australian passport template. ProKYC then creates a video and photo of the person to bypass KYC on the Bybit crypto exchange.
Thanks to such tools, attackers can create new accounts on crypto exchanges, experts noted. ProKYC is available for $629 per year. It's also designed to work on payment platforms like Stripe and Revolut.
Itay Maor, chief security strategist at Cato Networks, stressed that detecting and protecting against a new type of fraud is a difficult task.
"The creation of ultra-restrictive biometric authentication systems can lead to many false positives. On the other hand, weak control is a road to fraud," he said.
Methods for detecting the use of AI tools exist. Some rely on people to manually identify unusually high-quality images and videos, as well as inconsistencies in facial movements.
The tool, called ProKYC, demonstrates a "new level of sophistication" in crypto fraud. It represents a significant step up from the older methods that cybercriminals used to bypass two-factor authentication and KYC.
Instead of buying fake IDs, scammers use AI-powered tools to create brand-new documents and fake videos to go through facial recognition.
ProKYC is specifically configured to work with crypto exchanges and financial companies whose KYC protocols involve matching a webcam face with a government document.
In the published video, the user integrates the AI-generated face into the Australian passport template. ProKYC then creates a video and photo of the person to bypass KYC on the Bybit crypto exchange.
Thanks to such tools, attackers can create new accounts on crypto exchanges, experts noted. ProKYC is available for $629 per year. It's also designed to work on payment platforms like Stripe and Revolut.
Itay Maor, chief security strategist at Cato Networks, stressed that detecting and protecting against a new type of fraud is a difficult task.
"The creation of ultra-restrictive biometric authentication systems can lead to many false positives. On the other hand, weak control is a road to fraud," he said.
Methods for detecting the use of AI tools exist. Some rely on people to manually identify unusually high-quality images and videos, as well as inconsistencies in facial movements.
