Artificial intelligence advancements are still astounding, but not all of them are motivated by good purposes. In order to get beyond KYC (Know Your Customer) security requirements in cryptocurrency exchanges, the cybersecurity firm Cato Networks unveiled ProKYC, an AI solution, in October. At the expense of platforms and users, this tool makes it easier for new types of fraud to occur. Even if it’s still hard to spot, this phenomena has the potential to overhaul how cryptocurrency exchanges handle security.
Criminals Love for crypto
Cybercriminals have always been drawn to the cryptocurrency market. The increasing sophistication of fraudulent technologies is understandable given the millions at stake.
This new generation of fraudulent technologies is embodied by Cato Networks’ ProKYC. In contrast to conventional techniques for purchasing forged documents on the dark web, ProKYC generates new identities on its own. This tool can create photos and movies that pass facial recognition tests on the biggest cryptocurrency platforms, such as Bybit, by using deepfake videos.
The program provides a straightforward procedure and is specifically tailored for cryptocurrency exchanges. A user can create a unique visage, modify fingerprints, and obtain documents like a virtual passport with a few clicks.
The ProKYC advertising film, which was released by Cato, demonstrates how this program creates a phony identity by utilizing related pictures and videos.
These deepfakes mimic human faces with unsettling realism, convincing enough to fool most of the KYC procedures in place today.
AI difficulties for crypto security
ProKYC’s influence extends well beyond cryptocurrency. Indeed, this program also says it can get beyond Stripe’s and Revolut’s KYC procedures.
ProKYC markets itself as an inexpensive service that is a wise investment for scammers wishing to open multiple accounts under false names, with an annual subscription fee of roughly $629.
New Account Fraud (NAF) is a phenomena that has already cost organizations a lot of money.
Cato Networks chief security strategist Etay Maor cautions that it is challenging to stop this evolution. More lax rules would let fraudsters through, while too many limitations run the danger of producing false positives and penalizing real users.
Because ProKYC is so complex, it could be necessary to use hybrid solutions that combine cutting-edge biometric detection tools with human monitoring to find discrepancies that a machine alone might miss. Young people, meanwhile, believe that cryptocurrency has a bright future.
