ProKYC is an innovative AI-powered tool that enables fraudsters to circumvent advanced Know Your Customer (KYC) measures employed by cryptocurrency exchanges.

This tool specifically targets crypto exchanges and financial institutions with stringent KYC protocols, which typically require users to match live webcam images to government-issued IDs.

In a striking demonstration, ProKYC generated a deepfake image that was integrated into an Australian passport template, successfully bypassing KYC checks on the Dubai-based exchange Bybit.

Cato Networks, a cybersecurity firm, has labeled ProKYC as a significant advancement in the techniques used for crypto-related fraud.

Cato further emphasizes that these AI-powered methods greatly enhance criminals' capabilities to commit New Account Fraud (NAF) on cryptocurrency platforms.

Recent reports from Gen Digital indicate a notable increase in the use of deepfake AI videos by crypto scammers to defraud individuals, particularly over the past ten months.

Detecting and preventing this new form of AI fraud presents challenges, as overly strict systems may lead to false positives, while more lenient measures could allow fraud to slip through.

Potential detection strategies include manual reviews of high-quality images and videos to identify inconsistencies in facial expressions and image quality.

Unlike traditional methods that relied on purchasing forged IDs, ProKYC can create entirely new identities through advanced AI technology.

The ProKYC service offers a subscription package priced at $629, which includes tools for generating deepfake images and videos, claiming to bypass KYC for various payment platforms like Stripe and Revolut.

In the United States, identity fraud carries severe penalties, with maximum sentences reaching up to 15 years in prison along with substantial fines.

A demonstration video from ProKYC showcases its ability to generate fake IDs and deepfake videos that can successfully navigate the facial recognition systems of major crypto exchanges.