Digital Identity Verification a Safer EKYC Step Against Deepfake Attacks

The quick emergence of AI has become the cause of its huge usage in different industries. Recent studies estimated that the industry will reach up to $1.5 trillion by 2030. Also, this technological boom will open 97 new jobs by 2025, which will have 85 million positions. However, most people are focusing on the trend changing due to AI in the job market, and there’s a new concern about how AI, particularly deepfakes enhances fraud and identity theft by the wrong use of this technology. 

However, places like Sub-Saharan Africa are promoting digital identity verification due to its safe and convenient methods for identification. The use of facial recognition has rapidly expanded in different forms such as speech recognition—-which is a less common type of FRT. Moreover, many identity verification services in various regions are already using online identity authentication systems alongside FRT—-which makes the process quick and convenient to check people across different industries. Moreover, the growing usage of identity verification systems indicates its significance as a robust protection against identity fraud including deepfakes, creating eKYC a secure and robust method. 

Deepfake Attacks and Their Impact on KYC

With the advancement of technological evolvement, cybercriminals are also becoming sophisticated. Companies across the different regions are heavily investing in generative AI while criminals are using this technology in different ways. However, deepfakes are one of the prominent examples that are used to generate fabricated identities and digital accounts, providing the chance for criminals to fool the old Know Your Customer checks. Also, these fake accounts are usually known as digital money mules that are used for stolen fund transfers making it difficult for the law enforcement authorities to find the criminals. 

Importance of Online Identity Verification

Furthermore, Know Your Customer is a high-security method that every financial institution uses to confirm their customer identity. This method protects the companies from illegal activities and frauds, for instance, money laundering and tax evasion. KYC methods, in traditional methods, ask the customers to transfer their documents, a selfie, and video recording while following the particular instructions to confirm their identities. However, digital identity verification has become a more important factor in securing online financial services. Criminals are using different ways to deceive such systems while using deepfakes to bypass biometric verification tools. 

How Deepfakes Threaten KYC Security

Deepfakes are capable of mocking original images of people including voices, and their movements, and making it possible for fraudsters to generate real yet fake identities. Some reports that have expertise in AI deepfake detection revealed how criminals are using several tools to generate fake identities that involve 47 particular tools to fool the KYC rules. 

The use of such tools enables criminals to create an online clone that conveniently passes the identity verification process, opens up bank accounts, exchanges cryptocurrency, and different financial forums under the fabricated identities. So, this development provides them a chance to function undetected and transfer illegal funds across the various regions. 

Market for Digital Clones

The most recent investigation revealed a black-market site where sellers are providing photos and videos of different people so scammers can fool the KYC conveniently. These types of digital cloning are used to assist the volunteers under the economic challenges who pay a small amount for the fake content. 

Such websites sell the fabricated identities of criminals under $30 and these digital clones consist of photos and videos in different attire and resist any detection. Even the latest options provide the dedicated content that is specifically generated after paying the higher prices.  

Role of AI in Document Forgery

The artificial intelligence tools are not useful for generating fabricated faces but these tools are also helpful for scammers to create fake documents. There are some sneaking websites providing the pre-ready sets that thoroughly have fabricated IDs and realistic images and videos to match. 

This method has made things easier for scammers and they avoid the use of real images of individuals or money mules for illegal transactions. They don’t depend on digital clones and artificially generated fake papers to get the same tasks in solitary. It reduces the chance for them to stay under supervision and avoid any detection by law enforcement. 

Need for eKYC Deepfake Protection

• The deepfake technology has sharpened the fraudsters to mock real personalities while making the old KYC methods weak. 
• It made the process more challenging to recognize the real ones for identity verification systems.
• The video-based KYC depends on the still or live image retaining which is easy to trick by deepfake videos—-allowing scammers to impersonate real customers. 
• Document and selfie uploading can easily bypass the latest AI deepfakes highlighting the quick need for robust security.  
• The biometric systems may fail without deepfake detection security to distinguish between real and fake identities. 
• The collapse to detect deepfake attacks can be the cause of scam accounts, lack of customer trust, and financial institutions’ reputation damage. 
• However, the incorporation of artificially driven deepfake detection in electron Know Your Customers can assist in safe online identity verification methods. 
• With the fraud growth ratio, the regulatory authorities are highlighting the demand for secure eKYC techniques to protect against deepfake identity theft. 
• Besides, the adoption of Know Your Customer technology alongside deepfake protection is important to secure identity verification and create flexibility in the digital ecosystem. 

eKYC Benefits: Security & Trust

Future of Digital Identity eKYC

Digital identity verification with the help of VCs is becoming more sophisticated in KYC methods to reduce the emerging risks due to deepfake techniques. However, the use of VCs facilitates strong solutions to fight against deepfake threats and provides a safer, and more useful identity authentication process. Furthermore, FACIA is providing AI deepfake detection services, to governments, financial institutions, private organizations, and other media forums—acting as the protective shields. This technology is preventing individuals and financial institutions from misinformation and exploited images. Facia’s solution includes high accuracy in deepfake detection across all platforms but adapts in real-time to diverse security needs, while verifiable credentials set standards for global adoption in establishing a secure and streamlined manner of identity verification to negate the risks of deepfakes in fraud. With models becoming decentralized, cryptography advances, blockchain, and the AI detection mechanism, therefore, will strengthen eKYC and ensure long-term digital trust.