Authorities in the United States and the Netherlands have successfully taken down VerifTools, a major online marketplace that sold counterfeit identification documents worldwide, including driver’s licenses and passports. The platform enabled fraudsters to bypass Know Your Customer (KYC) checks and gain unauthorized access to online accounts.

Operation Overview

As part of the coordinated action, the FBI seized two domains and one associated blog, while Dutch police confiscated two physical servers and 21 virtual servers at a data center in Amsterdam. According to the U.S. Department of Justice, VerifTools facilitated the sale of fake IDs that could be used to impersonate others and access online services.

The FBI began investigating VerifTools in August 2022, after learning of a scheme where stolen identities were used to access cryptocurrency wallets. Undercover agents were able to purchase counterfeit driver’s licenses from New Mexico and other U.S. states through the marketplace.

Scale of the Marketplace

VerifTools reportedly offered fake identification documents for all 50 U.S. states as well as several foreign countries, with some IDs priced as low as $9. The FBI estimates that the platform generated approximately $6.4 million in illegal profits for cybercriminals.

Visitors to the marketplace could upload a passport photo, submit false personal information, and download the generated ID image after payment. These fake IDs could then bypass verification systems relied upon by companies for KYC compliance.

Next Steps

Dutch authorities now have access to all VerifTools’ server data and are working to identify both the platform’s administrators and its users. Those responsible face serious criminal charges, including imprisonment.

FBI Special Agent Philip Russell emphasized the significance of the takedown:

“Removing this marketplace is a major step in protecting the public from fraud and identity theft. Together with our partners, we will continue to target and dismantle the platforms that criminals depend on, no matter where they operate.”

This operation highlights the ongoing threat posed by online marketplaces for fraudulent identification and the importance of international cooperation in combating cybercrime.

Source: https://www.securityweek.com/veriftools-fake-id-operation-dismantled-by-law-enforcement