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Security Research

Security Research

Battling the Invisible Foe: Understanding How Fraudulent Accounts Are Created in Today's Digital World

Discover the sophisticated methods fraudsters use to create fake accounts and bypass IDV systems. From deepfakes to synthetic identities - here's what you need to know.

Arbitra Security Research TeamJanuary 15, 202512 min read

The Fraud Epidemic

Fraudulent account creation has reached unprecedented levels, with sophisticated attackers using AI and advanced techniques to bypass traditional security measures.

70%
Buyers experiencing fraud increase
$10B
U.S. fraud losses in 2023
$40B
Projected banking fraud by 2027
48%
Cite synthetic identity as most difficult

Document Fraud: The Foundation of Fake Identities

Physical Document Issues

  • Forged government-issued IDs with sophisticated printing techniques
  • Stolen legitimate documents used with altered photos
  • Morphed documents combining multiple identities
  • Template-based document generation from dark web sources

Digital Document Attacks

  • Screenshot manipulation and PDF editing tools
  • AI-generated synthetic identity documents
  • Deep learning-based document tampering
  • Metadata manipulation to hide digital alterations

Before vs. After: Document Manipulation

Modern document fraud techniques can alter photos, text, and security features with near-perfect precision, making detection increasingly difficult without advanced verification systems.

Biometric Fraud: Defeating the Human Factor

Attack Types

Print/Replay Attacks

Using printed photos or recorded videos to fool facial recognition systems

Deepfake Video Playback

AI-generated realistic video content mimicking legitimate users

3D Models & Masks

Physical masks and 3D-printed faces to bypass liveness detection

Passive Liveness Bypass

Sophisticated techniques to fool passive liveness detection algorithms

Attack Sophistication Levels

Basic Print Attacks30%
Video Replay60%
Deepfake Technology85%
AI-Generated Faces95%

Biometric Attack Evolution

The sophistication of biometric attacks has increased exponentially, with AI-powered deepfakes now capable of real-time generation and adaptive responses to liveness challenges.

Synthetic Identity & Identity Farming

The Identity Farm Process

1

AI Generation

Create synthetic identities using AI tools like ThisPersonDoesNotExist

2

Infrastructure Setup

Deploy across multiple IPs and geographic locations

3

Credential Stuffing

Use breached PII data to create believable backgrounds

4

Mule Rotation

Rotate through identities to avoid detection patterns

Key Techniques

  • AI-generated faces that don't exist in reality
  • Distributed identity farms across multiple data centers
  • Credential stuffing with breached personal information
  • Automated mule identity rotation systems

Detection Challenges

  • No real-world footprint to verify against
  • Sophisticated behavioral mimicking
  • Distributed attack patterns across networks
  • Adaptive learning from detection attempts

Technical Attack Vectors

Advanced technical methods used to bypass IDV systems at the infrastructure level

The Imperative for Robust Solutions

Traditional static security models are no longer sufficient against today's sophisticated fraud tactics. Organizations need dynamic, multi-layered defense systems.

Behavioral Analytics

Real-time analysis of user behavior patterns to detect anomalies

Real-time Signals

Continuous monitoring and adaptive response to emerging threats

Device Intelligence

Advanced device fingerprinting and risk assessment

Don't Let Sophisticated Fraudsters Win

Get independent testing and benchmarking to ensure your IDV system can withstand today's advanced fraud tactics. Arbitra's comprehensive security assessments identify vulnerabilities before fraudsters do.

Penetration Testing
Comprehensive security assessments
Vendor Certifications
Independent validation and benchmarking
Fraud Resilience
Advanced attack simulation testing