A network security company warns that criminals have developed artificial intelligence (AI) tools to target cryptocurrency exchange platforms.
In a new report, Cato Networks said bad actors are selling deepfake tools on underground markets that allow users to bypass crypto exchanges' identity verification tests.
The company says users are using the tool to create fake accounts for money laundering purposes, rather than hacking existing accounts.
“The creation of verified but synthetic accounts allows for money laundering activities, mule accounts, and other forms of fraud. According to AARP (American Association of Retired Persons), losses due to new account fraud in 2023 will be over $5.3 billion (up from $3.9 billion in 2022).
According to Cato Networks, malicious actors first use an AI rendering website to generate fake credentials and images. They then used deepfake tools to forge passports and create videos designed to pass through cryptocurrency exchanges' facial recognition systems. After these steps, the criminal uploads the fake government ID to a cryptocurrency exchange and creates a new verified account.
“He will then be asked to open his computer's camera and perform facial recognition. Instead, this tool will allow him to connect the video he has created as if it were an input to the camera. Masu.”
The company has also shared a video showing how to use the tool to create a verified Level 1 account on a cryptocurrency exchange in minutes.
Cato Networks says crypto exchanges need to update their security systems to combat new account fraud attacks.
“Although AI has received a lot of hype in the media, threat actors have been perfecting their use of deepfake technology for quite some time.
What can organizations do to protect themselves from AI threats? Cato CTRL collects threat intelligence from human intelligence (HUMINT), open source intelligence (OSINT), or other means to keep up with the latest cybercrime trends. We recommend that you keep track of it at all times.
Threat actors will continue to evolve and find ways to use new deepfake techniques and software to their advantage. ”
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