Deepfakes created by generative AI can deceive facial recognition systems on cryptocurrency exchanges, allowing fraudsters to pass identity verification checks and potentially launder money. These deepfakes are sold on the dark web by threat actors like ProKYC, who use them to forge government IDs and manipulate facial recognition tools. By using AI-generated images, attackers can create realistic faces to pass as live individuals during account creation processes
This poses a significant threat as it enables fraudsters to open accounts under fake identities and engage in illegal activities. Organizations are advised to watch for high-quality AI-generated videos with clear images, detect glitches around eyes and lips, and collect threat intelligence to prevent the creation of fake accounts using AI. https://www.techrepublic.com/article/ai-deepfake-video-crypto-accounts/