min read

Innovation in AI challenges Identity Verification

Published on
March 28, 2024
Subscribe to our newsletter
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

In an unprecedented move, a generative AI-based online service has emerged, capable of crafting fake IDs with alarming proficiency. This service has sent ripples through the cybersecurity and financial sectors, particularly affecting cryptocurrency exchanges that rely heavily on Know Your Customer (KYC) protocols. The website, OnlyFake, has demonstrated the capability to bypass stringent KYC measures with its AI-generated identification documents, underscoring a significant vulnerability in current identity verification processes.

The Evolution of Fraudulent ID Creation

The emergence of such sophisticated methods for creating fraudulent IDs is not entirely new; the dark web has long been a hotspot for acquiring fake or stolen identity data. Traditional tactics employed by fraudsters include acquiring genuine personal photos or ID images from data breaches, utilizing counterfeit documents, and exploiting social engineering techniques. Despite their varying complexity levels, these methods often remain undetected by conventional ID scanning solutions, which underscores the necessity for multi-faceted fraud detection strategies.

The primary vulnerability exploited in these schemes is the ability for users to upload ID documents from their device's gallery, a feature that significantly simplifies the process for potential fraudsters.

The acquisition of legitimate identity documents for fraudulent purposes has become alarmingly accessible, with prices dipping as low as 5 USD for a genuine document photo. This presents a formidable challenge for ID scanning technologies, which struggle to identify authentic documents being misused by impostors.

Comprehensive Solutions to Enhance Verification Protocols

In response to these challenges, a series of features are recommended and some are in the process of being implemented to significantly enhance the security and integrity of the identity verification process:

Document Liveness

We are introducing advanced features to our document scanning technology, including the ability to detect and validate holographic stickers, optically variable ink, and machine-readable elements in real-time. This initiative is critical for ensuring the authenticity of documents submitted during the verification process, effectively combating the use of sophisticated forgeries.

1:N Face Verification

An upcoming feature will allow us to compare the biometric parameters of individuals undergoing verification against a secure database. This means that even if a new attempt is made with a fraudulent document, you can quickly identify discrepancies and take appropriate action.

Liveness Checks

We recommend implementing liveness checks to make the verification process even more secure. This approach requires users to perform specific actions in real-time, significantly complicating fraudulent attempts. With over 4,096 variations in liveness check actions, it becomes exceedingly difficult for fraudsters to prepare or bypass these checks.

Forgery Detection

ZignSec is rolling out a sophisticated forgery detection tool, designed to analyse documents for any signs of tampering or alteration. This tool is a vital part of our multi-layered defence strategy, offering an additional layer of security and peace of mind for businesses and their customers.

Identity Data Verification

Employing additional tools for identity validation and verification is crucial. This encompasses methods like eID 2FA (where applicable) and verifying personal information against government or commercial databases. This comprehensive approach helps ascertain an individual's identity more accurately and securely.

These advanced solutions signify a significant step forward in combating identity fraud, showcasing a proactive and innovative approach to ensuring the integrity of online verification processes. As technology evolves, so too must the measures to protect against its exploitation, a challenge that we continue to face head-on.

Do you want to discover more about ZignSecs solutions and how they cover your use case? Send an email to sales@zignsec.com, or book a demo here.

Verify and validate the legitimacy of your corporate clients

Evaluating corporate clients involves digging, investigation, and complicated decision-making. Our extensive portfolio of KYB-focused products and workflow solutions mitigate these efforts.