A cybersecurity firm, Cato Networks, has raised alarms about a new AI-powered deepfake tool called ProKYC. This tool enables malicious actors to circumvent high-level Know Your Customer (KYC) measures on cryptocurrency exchanges, marking a significant advancement in crypto fraud sophistication. Instead of resorting to traditional methods like purchasing forged ID documents on the dark web, fraudsters can now create entirely new identities using AI tools. ProKYC specifically targets crypto exchanges and financial institutions with stringent KYC protocols, such as facial recognition matching. The tool can generate fake ID documents and deepfake videos to deceive KYC processes successfully. With the rise of AI-powered tools like ProKYC, the threat of New Account Fraud (NAF) on crypto exchanges has escalated. Detecting and preventing such AI fraud poses challenges, but potential methods include manual identification of high-quality images and inconsistencies in facial movements. The consequences of identity fraud can be severe, with penalties including imprisonment and hefty fines. Read more AI-generated news on: https://app.chaingpt.org/news