Criminals increasingly use fake documents and deepfakes to bypass KYC checks

The operator of OnlyFake pleaded guilty in February 2026 for creating over 10,000 fraudulent digital identity documents, including passports and driver's licenses, according to a recent report by Bleeping Computer.

These fabricated documents, along with manipulated photographs, videos, and assistance with live identity verification, are being advertised and sold on underground markets. Cybercriminals use these tools to conceal their identities, bypass identity checks at financial institutions and cryptocurrency exchanges, and facilitate money laundering. The process, known as Know Your Client (KYC), typically involves validating a customer's identity through documents, facial recognition, and transaction monitoring. However, criminals are assembling comprehensive "identity packages" that include forged documents, deepfakes, and even human operators to impersonate applicants during live verification stages. This sophisticated fraud extends to offering post-account creation support, including help with subsequent identity checks, to maintain the illusion of legitimate account control. Financial institutions are warned to scrutinize applications for inconsistencies between identity information, supporting records, and facial images to detect this evolving threat.

Source: Bleeping Computer