AI tool ProKYC is an app that uses fake IDs and ripped videos to pass the KYC test for crypto exchanges.
ProKYC also allows fraudsters to create several fake identities on those platforms.
The problem of recognizing ProKYC deepfakes is challenging; any attempts to tighten control lead to false positives.
ProKYC, an AI-based tool recently discovered, has been claimed to be a significant danger to crypto exchange and KYC rules. Cybersecurity firm Cato Networks disclosed on October 9 that ProKYC provides a way around KYC making fake identities and deepfake videos. These tools are specifically initially aimed at sequences and exploiting the weaknesses in biometric verification used by the crypto exchanges.
How ProKYC Operates
Specifically, through the ProKYC, consumers can develop fake identification documents with synchronized fake identification videos. These deepfake videos will be used to deceive face recognition software applied in KYC procedures. It can scan one face and superimpose it into identity documents such as passports and identity cards.
Apart from bogus ID documents, ProKYC offers an array of products for fraudsters, such as a camera, virtual emulator, facial animation, and even fingerprint imitation. This suite of tools, which costs $629 per year, will allow its users to scam crypto exchanges and payment services such as Stripe and Revolut.
New Account Fraud and Growing Threats
One of the many techniques facilitated by ProKYC is New Account Fraud (NAF). Through ProKYC, fraudsters can open multiple accounts with exchange houses, defeating the purpose of the KYC checks, which are meant to eliminate activities like money laundering and identity theft. The appearance of such AI tools as ProKYC is less like buying and utilizing stolen identities found on the black market and more about creating original synthetic identities based on machine learning algorithms.
In a discussion with Cato Networks’ chief security strategist Etay Maor, he noted that ProKYC is a new level of AI ‘elaborate fraud.’ Contrary to previous techniques, fraudsters do not even need to use stolen personal data since they can easily avoid any checks using AI identities
https://twitter.com/PitchyisaRed/status/1844439923040059478 Challenges for Detection and Prevention
.One of the most significant unsolved issues for exchanges is how to substantiate deepfakes generated with AI. Cato Networks also mentioned that while performing much tighter biometric security, users may be locked out because of high false positive alarms. However, ignoring or formulating a weak measure and regulation puts an exchange in the wrong place where sharp practices dominate.
Some defense measures can be obtained using manual approaches, such as asking employees to search for ‘weird’ images and videos. In the future, crypto exchanges and the client identification industry will adopt advanced tools, including ProKYC; therefore, new security measures will need to be implemented. In June 2021, the Crypto exchange OKCoin incorporated a new KYC function.
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