Congratulations, KYC Is Now a Vibe Check

[BlackHatCoiner]

https://x.com/venturetwins/status/2011285029541077033

Now that AI is capable enough to accurately mimic anyone if you have a camera, a laptop and an Internet connection, how reliable are current Know Your Customer measures? They aren't. So let's give some feedback to the exchange companies: What's the next measure for the exchange to reliably verify your identity? Go vote.

It's as if Know Your Customer is still put in place, not to prevent money laundering, but to push everyone to voluntarily hand over their bitcoin activity to the government. I know, a wild conspiracy theory that I read on X.

[Pmalek]

It's scary when you think about it. The possibilities for abuse are endless.

A few years ago I remember reading on the forum about an exchange and their request to one trader. I can't remember which site. They asked the person to take a picture with a local newspaper in his hands. It has to be a local paper, that is sold in that locality, and not something national or international. While holding the newspaper, he has to stand in front of his street address sign or the building number has to be visible in the background.

With today's AI, you can do all that in a few minutes.

[Mahiyammahi]

What the hell was that? That’s some seriously scary stuff. Mimicking a real person and gaining access to someone’s secured exchange assets seems way too easy.
It actually reminds me of something I’ve been seeing lately, groups openly buying Binance accounts even though Binance claims that any device change requires facial verification before logging in.
What’s even more disturbing is that they’re offering face verification bypass services. It’s terrifying, but at the same time, it highlights a huge challenge for centralized exchanges. Maybe this is a sign that the centralized era is slowly giving way to DeFi.


It's also reminded me the nostalgic vibe , when I watched the movie of Terminator on my childhood. It seems like that era isn't far from here.

[_act_]

There are AI detection tools but we do not know what will happen in the future as the AI are becoming more real.

There are paid services that verify accounts for people. It can be up to helping the client to further reverify the account in the future if there is any need. Although many are scam but it is happening.

It's as if Know Your Customer is still put in place, not to prevent money laundering, but to push everyone to voluntarily hand over their bitcoin activity to the government. I know, a wild conspiracy theory that I read on X.

After gambling, crypto is the least used for money laundering as of 2024. 2025 stat will later be out about it.



The trade-based money laundering was the highest and it mostly deals with fiat, followed by real estate transactions which also deals most with fiat.

Followed by cash smuggling, the cash is fiat and this is very untraceable. Used very well by terrorists and bandits and also other people.

Followed by Shell companies and Trusts

It is clear that fiat still always dominates.

[Cookdata]

You know the more scary aspect of this AI, they are used for romance scams alot. With a premium account, you can have access to plenty of images with different outfits and be at different places, too real to notice as AI. Like are we not cook?

Exchanges are going to attract what they fear very soon, Imagine someone stole a Bitcoin from one victim but doesn't want to go through the stress of swaps on Dex protocols. The centralized exchange is going to be their next place, register with a bunner email, do a Kyc with AI, deposit dirty Bitcoin(according to them), sell it for another coin, withdraw to external wallet. You have successfully withdraw a clean Bitcoin sent from centralized exchange to external wallet, easy peasy.

With these videos I saw on that X thread and replies, a time will come, not only exchanges that mandate Kyc for all customers, all Kyc platforms will face the challenge in identification, original Kyc are going to be difficult to differentiate from fake ones. The sad part about this AI images, they are pre-generated from real images of people used train these AI programs.

[Lucius]

It's scary when you think about it. The possibilities for abuse are endless.

A few years ago I remember reading on the forum about an exchange and their request to one trader. I can't remember which site. They asked the person to take a picture with a local newspaper in his hands. It has to be a local paper, that is sold in that locality, and not something national or international. While holding the newspaper, he has to stand in front of his street address sign or the building number has to be visible in the background.

With today's AI, you can do all that in a few minutes.

I remember that, and imagine, I didn't need AI to find that topic -> Street Selfie? Why all these crazy requirements in the name of KYC verification?

I don't know what CEXs will come up with next regarding KYC, but it definitely won't be easy. People may have to go to their office in person to open an account.

[Fiatless]

With these videos I saw on that X thread and replies, a time will come, not only exchanges that mandate Kyc for all customers, all Kyc platforms will face the challenge in identification, original Kyc are going to be difficult to differentiate from fake ones. The sad part about this AI images, they are pre-generated from real images of people used train these AI programs.

The next phase might be to develop advanced AI detectors that will ascertain if the content is real or developed by AI. This would also pose a problem because these AI tools are advancing every day.

These exchanges might also come up with impromptu questions and give customers a limited time to answer them. This might help to reduce the time customers would use to input prompts in AI softwares. 

[m2017]

Now that AI is capable enough to accurately mimic anyone if you have a camera, a laptop and an Internet connection, how reliable are current Know Your Customer measures?

This isn't a bug (KYC's unreliability), but a feature (the ability for users to bypass the stupid KYC while protecting their privacy).

They aren't. So let's give some feedback to the exchange companies: What's the next measure for the exchange to reliably verify your identity? Go vote.

If a KYC is unreliable under the AI, then it should simply be cancelled. It's as simple as that.

It's as if Know Your Customer is still put in place, not to prevent money laundering, but to push everyone to voluntarily hand over their bitcoin activity to the government. I know, a wild conspiracy theory that I read on X.

This isn't some wild conspiracy theory, but the pure truth, as KYCs allow any transaction to be associated with a specific individual, and then, if necessary, any movements from their wallet can be tracked. This is convenient for subsequent taxation.

It's no secret (and I hope it's no secret to anyone reading this) that all the "plausible" government pretexts are pure nonsense for citizens, used as a veneer to promote laws and initiatives that are convenient (but not beneficial to them). For example, the loss of privacy due to KYCs.

[nemesis_incarnate]

With these videos I saw on that X thread and replies, a time will come, not only exchanges that mandate Kyc for all customers, all Kyc platforms will face the challenge in identification, original Kyc are going to be difficult to differentiate from fake ones. The sad part about this AI images, they are pre-generated from real images of people used train these AI programs.

The next phase might be to develop advanced AI detectors that will ascertain if the content is real or developed by AI. This would also pose a problem because these AI tools are advancing every day.

These exchanges might also come up with impromptu questions and give customers a limited time to answer them. This might help to reduce the time customers would use to input prompts in AI softwares. 

It will be a never-ending cycle of the tech going forward in one way or another (generation vs detection), imo.

And it's not a bad thing.. It's the natural development in motion.

[snowpega]

Now I started to think more that governments should focus more on limiting the AI technology rather than putting their dirty hands in someone else's privacy, as governments also want the crypto system to be ruled under the KYC system. AFAIK US government is already working on such framwork. It all depends on every country's government on how much they are relaxing AI services to be used or operated in their country. AI has already started to disturb a lot of things, even though it is not very intelligent yet, as it is still in the learning phase. But what will happen that day when it gets intelligent enough? It is a fearful thought. Isn't it?

I was reading a piece of news that the UK is considering banning X due to its AI system grock and I support that it should be stopped, as AI technologies are breaking a lot of people's privacy, as it is kinda hard sometimes to say something whether it's a real video or AI-generated. So, for this, the government should sign an agreement with the AI services providers to regulate the AI system more in a useful way so that the dangerous use of it can be controlled as soon as possible. AI can me limite on the basis of commands and codes. What do you guys think about it? CMIIW!

[Agathamay]

It's scary when you think about it. The possibilities for abuse are endless.

A few years ago I remember reading on the forum about an exchange and their request to one trader. I can't remember which site. They asked the person to take a picture with a local newspaper in his hands. It has to be a local paper, that is sold in that locality, and not something national or international. While holding the newspaper, he has to stand in front of his street address sign or the building number has to be visible in the background.

With today's AI, you can do all that in a few minutes.

Everything has its advantages and disadvantages which today's AI isn't exempted.
I understand how we all want to avoid KYC and skip all these verifications but at some point, these AI innovations and upgrades are really becoming scary as we don't even know what to trust on the internet anymore as everything seems almost real.

I checked on x and at some point after watching that video severally, I think it might be a haven gateway for scammers and internet fraudsters, because those hoodlums never rest until they get what they want.

I don't even know if I'm to celebrate this AI innovations or not because I think it might do more harm than good

[Ivystar5]

It's scary when you think about it. The possibilities for abuse are endless.

A few years ago I remember reading on the forum about an exchange and their request to one trader. I can't remember which site. They asked the person to take a picture with a local newspaper in his hands. It has to be a local paper, that is sold in that locality, and not something national or international. While holding the newspaper, he has to stand in front of his street address sign or the building number has to be visible in the background.

With today's AI, you can do all that in a few minutes.

This whole process is like handing your life or your activities for life time into the hands of an exchange just because you have an activity to be conducted in their platforms, this very much scary more that what AIs can do
 
Furthermore, I have been seeing videos of AI generated videos with so much realistic looks which makes me thing that havung attempted an exchange verification process this AIs can still be prompted to do whatsoever, I'm just afraid how I can be represented with AI on cases that is crime related.

[Dunamisx]

It's as if Know Your Customer is still put in place, not to prevent money laundering, but to push everyone to voluntarily hand over their bitcoin activity to the government. I know, a wild conspiracy theory that I read on X.

Let's keep watching them deceiving themselves thinking they are to us, because we know what we want and how we can go about it, this is all about privacy, just that some are still there found wandering about without knowing the difference or what to do, we can't entrust them to regulate anything, as they used such to extract our information and use them against us, all CEX users, take note of this.

[Zaguru12]

It's as if Know Your Customer is still put in place, not to prevent money laundering, but to push everyone to voluntarily hand over their bitcoin activity to the government. I know, a wild conspiracy theory that I read on X.

After gambling, crypto is the least used for money laundering as of 2024. 2025 stat will later be out about it.

It is clear that fiat still always dominates.

This shouldn’t even be up for discussion because with blockchain not been private, there is limited chance of money laundering with total privacy because the blockchain is actually public, even with the use of mixers large amount of crypto asset can still be followed up. Fiat will most likely be the highest currency or asset use to aid money laundering because of lack of accountability but since it’s not bitcoin it’s not a major problem for the government.

Now I started to think more that governments should focus more on limiting the AI technology rather than putting their dirty hands in someone else's privacy, as governments also want the crypto system to be ruled under the KYC system.

You people rate the government so highly seriously, this people are just after not granting everyone the right to freedom or privacy and that’s the only reason for all this KYC and nothing like curbing money laundering. So if an AI can actually help to expose People’s privacy then I think the most government will do is to aid it than ban it or kick it away

[Findingnemo]

I don't know what it is going to be but the most intensive KYC will be like asking bank documents, proof of address and utility bills like credit card along with the address in it so that could be the one apart from this liveness detection test. And what if they go with live tracking of our location and need to match with the address we provided in the document?

[Satofan44]

KYC was never about money laundering, and it is a scam that has never worked at all for the claimed purposes. I will stand by it, nothing is different now in the sense that it becomes more obvious how easily KYC is bypassed. Most people do not know, but any online KYC was always trivially bypassed through KYC services. These days you can even bypass themselves and even extract money from compromised accounts even if they ask for video verification on withdrawal. To make matters worse, we are just at the very beginning of this spiral. The AI generation will continue to become more realistic and cheaper, there will be a point in time where you will be able to generate the most realistic video using very cheap and home hardware.

Some advanced companies are trying to investigate secondary features of the face in the verification videos, related to the IRIS or structural buildup of the face. They are no longer doing just doing basic face verification. Nevertheless, this is being bypassed too. It works against people who do not posses the knowledge or do not have the tools to bypass it. Usually these upgrades work only temporarily and the game continues.

I don't know what it is going to be but the most intensive KYC will be like asking bank documents, proof of address and utility bills like credit card along with the address in it so that could be the one apart from this liveness detection test. And what if they go with live tracking of our location and need to match with the address we provided in the document?

The location being given to an application or website can be easily spoofed. This can be done even to the most strict bank apps that disallow all kinds of stuff on the phone where they are installed. As a systems research, I did it many times to confirm that it still works. These measures are junk, they are invading your privacy and do not accomplish anything.

[Ambatman]

What's the next measure for the exchange to reliably verify your identity? Go vote.

Tell them you are not AI while they hope you being honest. But that's on a lighter note.
They might go stringent and work with your country of origin or of which you a citizen
To confirm the datas you shared.
This can also be bypassed by using another existing person as you.

If I'm not mistaken they would choose to use Ai to combat Ai.

[Floxynice]

https://x.com/venturetwins/status/2011285029541077033

Now that AI is capable enough to accurately mimic anyone if you have a camera, a laptop and an Internet connection, how reliable are current Know Your Customer measures? They aren't. So let's give some feedback to the exchange companies: What's the next measure for the exchange to reliably verify your identity? Go vote.

Looking at the whole concern, we would see clearly that the exchanges didn't think far when drafting KYC systems for their customers. They didn't put into consideration this current world where impersonation techniques are so advanced that it is gradually becoming difficult for us to tell what is real and what is not. That KYC system is already lagging behind, and it is not just the customers that would face the consequences, even the exchanges are not safe either.

AI can fake faces, voices, signatures and many more we are yet to know of. Maybe it's time for the exchanges to adopt another approach, probably cryptographic proofs, to identify their users through their mathematical identity and not the traditional method that has already been tampered by AI.

[xbetz.io]

The scary part isn’t just KYC itself but how permanent and reusable that data becomes once it exists. As AI improves, the risk shifts from “is this person real?” to “how easily can a real identity be replicated or abused later?”. KYC might still be required but exchanges pretending it’s a solved problem are probably underestimating the long-term risk.

[Alvin_talk]

Well, I think what could help the government in this regard is enforcing strict regulations on ai companies. Sure there are good uses of AI but what I see from the video in the X link provided is pure impersonation and I don't think a reasonable government should allow such companies carry out this kind of project, I mean what for? To encourage scam?

What's the next measure for the exchange to reliably verify your identity?

As you now know, facial verification, images/pictures, videos is a NO NO since these AI are now capable of producing identical images as the real one, videos mimicking the intended character etc.

For me, the best solution for exchanges should be something not complicated. AI bot asking some set of predefined question by the user should be just enough, I see no need for the facial and video verification.

It's as if Know Your Customer is still put in place, not to prevent money laundering, but to push everyone to voluntarily hand over their bitcoin activity to the government.

That's the simple truth.