US and Dutch authorities shut down VerifTools, a major fake ID marketplace selling documents to bypass KYC checks and access accounts.
Law enforcement in the US and the Netherlands dismantled VerifTools, a major fake ID marketplace selling ID documents to bypass KYC checks and gain unauthorized access to online accounts.
Authorities seized two marketplace domains and one blog used to sell fraudulent identity documents to cybercriminals worldwide.
“The U.S. Attorney’s Office for the District of New Mexico announced today the seizure of two marketplace domains and one blog used to sell fraudulent identity documents to cybercriminals worldwide.” reads the press release published by the DoJ. “The operators of VerifTools produced and sold counterfeit driver’s licenses, passports, and other identification documents that could be used to bypass identity verification systems and gain unauthorized access to online accounts.”
The Dutch police dismantled the infrastructure running the service, the police seized two physical servers and 21 virtual servers hosted at a data center in Amsterdam. Police will analyze seized servers to identify admins and users. Dutch authorities pointed out that forgery or fake IDs/payment tools can lead to up to six years in prison.
VerifTools, earning at least €1.3M, let users easily create fake IDs to bypass KYC checks by uploading photos and false data, undermining identity verification.
“The platform was easily found via multiple URLs. Visitors uploaded a passport photo, entered false information, and then generated an image of a fake ID. This image was downloaded after payment and then used to conceal someone’s true identity.” reads the press release published by the Dutch Politie. “Many companies and organizations use so-called Know Your Customer (KYC) verification, which often only requires an image of an ID. By using VerifTools, this KYC check could be circumvented.”
The Federal Bureau of Investigation (FBI) launched an investigation in August 2022 after discovering a conspiracy to use stolen identity information to access cryptocurrency accounts. The investigators discovered that the VerifTools platform offered counterfeit identification documents for all 50 U.S. states and multiple foreign countries for as little as nine dollars. The illegal platform was accepting payments in cryptocurrency.
The FBI tested VerifTools and used it to generate and purchase counterfeit New Mexico driver’s licenses.
“The FBI has identified the equivalent of approximately $6.4 million of illicit proceeds linked to the VerifTools marketplace.” continues the press release.
“The internet is not a refuge for criminals. If you build or sell tools that let offenders impersonate victims, you are part of the crime,” said Acting U.S. Attorney Ryan Ellison. “We will use every lawful tool to disrupt your business, take the profit out of it, and bring you to justice. No one operation is bigger than us together. With our partners at every level of law enforcement we will protect New Mexicans and defend those who stand up for our community.”
“The removal of this marketplace is a major step in protecting the public from fraud and identity theft crime,” said Philip Russell, Acting Special Agent in Charge of the FBI Albuquerque Division. “Together with our partners, we will continue to target and dismantle the platforms that criminals depend on, no matter where they operate.”
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Pierluigi Paganini
(SecurityAffairs – hacking, KYC)