Cryptocurrency News & Updates

People using DeepFakes to bypass crypto exchange’ KYC verification

Reportedly fraudsters are using AI tech generated avatars to easily bypass the human KYC verification on the crypto exchanges.

Over the last 6 months, AI tech concept-based chatbot development work is surging rapidly in the tech world. The current phase of this AI technology advancement is enough to create fake videos of any person, where it will be challenging to point out the fake sign. 

On 24 May 2023, In an interview with Cointelegraph, Binance Chief Security Officer Jimmy Su said that many fraudsters & scammers are using AI-created DeepFake avatars to bypass human KYC verification steps. 

The Binance security officer explained:

“The hacker will look for a normal picture of the victim online somewhere. Based on that, using deepfake tools, they’re able to produce videos to do the bypass.”

According to Jimmy, these AI tools are in the development phase but still they are advanced enough to easily spoof human & verification systems because these AI-created Deepfakes can respond on behalf of audio.

Binance CEO promotes Telegram crypto signal channel 

In Feb of this year, a video surfaced in the crypto sector in which Binance exchange CEO Changpeng Zhao (CZ) promoted a crypto trade signal telegram channel.

Indeed the video was created with the help of AI tools and that was fake. 

Such types of surging advancement in AI technology are creating opportunities for tech developers to create a better ecosystem for digital service users but at the same time, they are creating new challenges for online platforms.

Read also: John Ray III exploring possibilities to launch FTX2.0