Description: Cato CTRL security researchers reported that the cybercriminal group ProKYC is selling a deepfake tool capable of bypassing biometric and two-factor authentication (2FA) systems on cryptocurrency exchanges. The tool creates synthetic identities using AI-generated videos and forged documents, enabling fraudulent account creation. A demo video from ProKYC shows the tool in action against ByBit, allowing attackers to verify fake accounts for purposes such as money laundering and identity theft.
Editor Notes: Reconstructing the timeline of events: (1) Sometime before 2024: ProKYC develops a deepfake tool designed to defeat biometric and 2FA systems. (2) Sometime in Q4 of 2024: Cato CTRL security researchers discover ProKYC’s deepfake tool being sold in the cybercriminal underground. (3) October 9, 2024: Cato Networks publishes its report.
Entities
View all entitiesAlleged: ProKYC developed and deployed an AI system, which harmed ByBit , Cryptocurrency exchanges and Cryptocurrency investors.
Incident Stats
Risk Subdomain
A further 23 subdomains create an accessible and understandable classification of hazards and harms associated with AI
4.3. Fraud, scams, and targeted manipulation
Risk Domain
The Domain Taxonomy of AI Risks classifies risks into seven AI risk domains: (1) Discrimination & toxicity, (2) Privacy & security, (3) Misinformation, (4) Malicious actors & misuse, (5) Human-computer interaction, (6) Socioeconomic & environmental harms, and (7) AI system safety, failures & limitations.
- Malicious Actors & Misuse
Entity
Which, if any, entity is presented as the main cause of the risk
Human
Timing
The stage in the AI lifecycle at which the risk is presented as occurring
Post-deployment
Intent
Whether the risk is presented as occurring as an expected or unexpected outcome from pursuing a goal
Intentional
Incident Reports
Reports Timeline
Cato CTRL security researchers have recently discovered a threat actor, ProKYC, selling a deepfake tool in the cybercriminal underground that helps threat actors beat two-factor authentication (2FA) for conducting account fraud attacks.
T…
Variants
A "variant" is an incident that shares the same causative factors, produces similar harms, and involves the same intelligent systems as a known AI incident. Rather than index variants as entirely separate incidents, we list variations of incidents under the first similar incident submitted to the database. Unlike other submission types to the incident database, variants are not required to have reporting in evidence external to the Incident Database. Learn more from the research paper.
Similar Incidents
Did our AI mess up? Flag the unrelated incidents
Hackers Break Apple Face ID
· 24 reports
The DAO Hack
· 24 reports
Game AI System Produces Imbalanced Game
· 11 reports
Similar Incidents
Did our AI mess up? Flag the unrelated incidents
Hackers Break Apple Face ID
· 24 reports
The DAO Hack
· 24 reports
Game AI System Produces Imbalanced Game
· 11 reports