Artificial intelligence has learned how to pass checks on cryptocurrency exchanges

Network security experts from Cato Networks have announced a new AI-based tool for crypto theft.

The new AI tool for crypto theft is called ProKYC. The program allows attackers to create fake documents and videos that can bypass KYC checks. Moreover, real people are not needed — the platform generates new non-existent identities.

The program offers fraudsters various service packages. For example, facial animation, photo creation for verification, and even fingerprint generation. An annual subscription costs $ 629.

ProKYC is aimed primarily at crypto exchanges that provide KYC. In one of the examples, Cato experts described a case when fraudsters used the tool to create a fake Australian passport, generate a deepfake video, and successfully pass the «know your customer» procedure on Bybit.

«Cybercriminals have been trying to bypass two-factor authentication (2FA) for decades by using fake documents and credentials. Now, artificial intelligence tools are taking these attempts to the next level,» the Cato report says.

In addition to crypto exchanges, ProKYC developers claim that their program is also able to bypass the KYC of platforms such as Stripe and Revolut.

Etai Maora, chief security strategist at Cato Networks, noted that it is too difficult to combat such threats.

«At the technological level, it is quite difficult to detect attacks and account fraud. Creating ultra-strong biometric authentication systems can lead to a large number of false positives. On the other hand, weak controls can lead to fraud,» he explained.