Bad Actors Selling Deepfake Tool To Bypass Crypto Exchange Security Protocols, According to Cybersecurity Firm

A network security company is warning that criminals have developed an artificial intelligence (AI) tool that targets crypto exchange platforms.

In a new report, Cato Networks say Bad actors are selling a deepfake tool on underground markets that allows users to bypass a crypto exchange’s identity authentication tests.

According to the company, users rely on the tool not to hack existing accounts, but to create fake accounts for money laundering.

“Creating verified but synthetic accounts enables money laundering operations, mule accounts and other forms of fraud. According to AARP (American Association of Retired Persons), new account fraud was responsible for more than $5.3 billion in losses in 2023 (up from $3.9 billion in 2022).

Cato Networks says bad actors initially generate fake credentials and images using AI rendering websites. They then use the deepfake tool to forge passports and create videos designed to pass a crypto exchange’s facial recognition systems. After these steps, the criminals upload the fake government ID to a crypto exchange to create a new and verified account.

“He is then asked to open his computer’s camera to perform facial recognition. Instead, the tool allows him to connect the video he shot as if it were the camera’s input.”

The company also shares a video showing how the tool was used to create a verified level one account on a crypto exchange in minutes.

Cato Networks says crypto exchanges should update their security systems to combat new account fraud attacks.

“AI is heavily hyped in the media, but threat actors have been perfecting their use of deepfake technologies for some time.

What can organizations do to defend themselves against AI threats? Cato CTRL recommends gathering threat intelligence – whether from human intelligence (HUMINT), open source intelligence (OSINT) or other means – and staying up to date on the latest cybercrime trends.

Threat actors will continue to evolve and find ways to use new deepfake technologies and software to their advantage.”

Don’t miss a beat – Subscribe to receive email alerts straight to your inbox

Check price action

Follow us further X, Facebook And Telegram

Surf to the Daily Hodl mix

Generated image: Midjourney



Credit : dailyhodl.com

See also  Six US Banks Issue Urgent Debit Card Alerts, Forcing Mandatory Replacements for Many, After Third-Party Security Breach