United States and Dutch authorities confiscate crypto-fueled fake ID marketplace

Authorities in the United States and the Netherlands have teamed up to shut down an online fake ID marketplace that accepts digital assets. According to reports, the joint action saw them take down the VerifTools marketplace.

The press release notes that the marketplace sold fake documentation for as low as $9, accepting payments in digital assets. In the release, police attached to the Dutch cybercrime unit mentioned that they gained control of two physical data servers in Amsterdam, while also seizing control of about 21 virtual servers.

They announced that they worked alongside the FBI, seizing two domains used by the VerifTools marketplace, as well as a promotional blog run by the owners.

United States and Dutch authorities shut down fake ID marketplace

The joint investigation carried out by the FBI and the Identity Fraud and Documents Centre of Expertise in the Netherlands into VerifTools showed that the marketplace had generated more than $6.4 million in revenue. In addition, Dutch authorities mentioned that VerifTools recorded an annual turnover of about $1.5 million, making it one of the largest facilitators of fake identity documents internationally.

The modus operandi of the marketplace required users to upload a passport photograph and enter false data, which the website’s operators then used to generate a false identification card. FBI agents said they were able to order fake driving licenses for the state of New Mexico, with most of them facilitating their purchase with crypto, although they refused to mention the specific coins that were used to obtain the fake documents.

Once the fake IDs are ready, they are delivered to the buyers through several methods. These fake IDs are always used to bypass basic KYC safeguards or commit fraudulent activities, with police in Wales noting that they had encountered the VerifTools marketplace in the process of a fraud investigation.

Presently, the VerifTools URL now leads users to a splash page that notifies them that the website has been seized as a result of a coordinated effort from law enforcement from the United States and the Netherlands.

“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.”

In addition, the United States and Dutch authorities are expected to continue to go through the data from the seized servers in a bid to apprehend the administrators of the website.

Stakeholders bemoan the rise in demand in the fake ID market

According to commentators, the issue of the production and distribution of fake IDs has been booming. “Pinning down exact figures is difficult given the illegal nature of the trade, but most estimates place the global fake ID market somewhere in the billions of dollars,” said Kartik Venkatesh, global head of innovation at identity technology firm GBG.

He added that fake IDs are more sophisticated than the cheap knockoffs from the past decade, noting that the creators are using better machinery.

Describing what makes the new ones better, Venkatesh said, “Many include holograms, polycarbonate layers, barcodes that scan correctly, and UV-reactive ink, making them nearly indistinguishable from genuine documents without specialist equipment.” He also added that what has driven the rise in quality is the rise in demand, which has provided all conditions for a thriving illegal market of other tools and technologies, including AI-generated IDs.

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