Deepfakes Challenge Traditional Security Measures, Threatens a New Era in Identity Fraud
Summary:
The rapidly expanding Artificial Intelligence (AI) field is reshaping the security landscape with the rise of "deepfakes", AI-generated realistic video and audio reproductions that can create convincing counterfeit identification photos. The use of deepfakes is impacting the existing Know Your Customer (KYC) paradigm, pushing towards the application of cryptography to mitigate these challenges. The increasing sophistication of hackers has raised alarms around the world, especially in the cryptocurrency sector, as traditional verification processes are getting bypassed. Experts predict a future of "face swap" deepfake attacks, emphasizing the pressing need for industries to evolve their security mechanisms.
Artificial intelligence (AI) has been expanding dramatically, with predictions suggesting it could contribute up to $15.7 trillion to the global economy by 2030, a value exceeding the current economic contributions of major nations like China and India. One of the latest advancements in this field is the rise of "deepfakes", AI-generated highly realistic video and audio reproductions capable of replicating human identities. Recent instances highlighted how this technology can manipulate personal images to create false identification photos, challenging current security measures.
The increasing use of deepfakes significantly impacts the existing verification techniques like Know Your Customer (KYC). HyperCycle CEO, Toufi Saliba, conversed with Cointelegraph about the role of current security approaches contributing to this predicament and suggested that cryptography could resolve these challenges. Saliba also highlighted the potential disruptions in the cryptocurrency sector due to AI and deepfakes, emphasizing the necessity for prompt adjustments.
Dimitry Mihaylov, an AI research expert at the United Nations, brought to light the urgency for industries to evolve rapidly as criminals have started using advanced tools to generate convincing counterfeit identification documents. Mihaylov anticipates that KYC processes might become more dynamic and interactive as regulations adapt to these technological advancements.
The world of cryptocurrency is also feeling the impact of deepfakes, with a platform called OnlyFake recently claiming to have bypassed the KYC protocols of several known cryptocurrency trading platforms. For $15, it promises to create counterfeit driving licenses and passports for multiple nations. In February, 404 Media, a company, revealed that it had used OnlyFake’s services to evade the KYC verification of popular crypto exchange OKX.
In late 2022, blockchain security company CertiK unearthed the existence of an underground marketplace where identities were available for as low as $8. The easy availability of AI deepfake technology has triggered concerns among cryptocurrency sector leaders, especially around the authenticity of video verification processes used for identity validation.
Looking ahead, the threat from "face swap" deepfake attacks is likely to grow. A significant rise in attacks against remote identification verification systems was observed between 2022 and 2023 mainly due to the availability of free and cost-effective face swap tools, virtual cameras, and mobile emulators. As hackers and scammers grow more sophisticated, digital injection attack vectors and emulators that allow real-time deepfake creation pose a serious threat to mobile and video authentication systems. How this budding security paradigm will evolve, especially with the increasing dependency on advanced technologies, remains to be seen.
Published At
2/20/2024 5:01:00 PM
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