The article also highlights how liveness checks, an additional security measure requiring users to demonstrate they are real, can be bypassed using gen AI. The chief security officer for cryptocurrency exchange Binance has stated that deepfake tools today are sufficient to pass these checks. The article concludes by suggesting that KYC could soon become ineffective as a security measure due to the advancements in deepfake technology.
Key takeaways:
- Generative AI could potentially disrupt the "Know Your Customer" (KYC) process used by financial institutions and fintech startups to verify customer identities, by enabling the creation of deepfaked ID images.
- Using open source software like Stable Diffusion, an attacker could create synthetic renderings of a person holding an ID document, which could potentially pass a KYC test.
- Some apps and platforms use "liveness" checks as an additional security measure, but these can also be bypassed using generative AI.
- While there is currently no evidence that generative AI tools have been used to fool a real KYC system, the potential for this to happen in the future is a growing concern.