AI was supposed to make verification smarter, but OnlyFake turned it into a weapon against the very systems meant to protect us. Ukrainian national Yurii Nazarenko just pleaded guilty to running a subscription platform that churned out over 10,000 AI-generated fake IDs, passports, and Social Security cards—all specifically engineered to slip past the Know Your Customer checks that banks and cryptocurrency exchanges rely on to prevent money laundering and terrorism financing. This wasn’t some basement operation with a photocopier. This was the Uber-ization of document forgery, complete with bulk pricing and customer service.
The Netflix of Document Fraud
OnlyFake offered AI-generated IDs for all 50 states plus 56 countries, accepting only cryptocurrency payments.
Operating between 2021 and 2024, OnlyFake’s neural networks could generate convincing driver’s licenses for every U.S. state, plus identification documents for 56 other countries. Customers could customize documents with personal details or opt for randomized information, choosing between digital scans or casual tabletop photos designed to fool remote verification systems. The platform accepted only cryptocurrency and offered bulk packages up to 1,000 documents—because apparently there’s economy of scale in financial crime too.
Law Enforcement Closes In
FBI agents made undercover purchases after investigative outlet 404 Media exposed the operation in February 2024.
The scheme unraveled when 404 Media published an exposé revealing OnlyFake’s capabilities and neural network technology. FBI agents conducted undercover purchases between May and June 2024, buying fake New York IDs, U.S. passports, and Social Security cards. Despite Nazarenko’s attempts to cover his tracks by routing payments through multiple cryptocurrency wallets and deleting emails, he was extradited from Romania in September 2024.
The Damage Assessment
Platform generated hundreds of thousands in revenue before Nazarenko agreed to forfeit $1.2 million.
The operation pulled in “hundreds of thousands of dollars” according to prosecutors, with Nazarenko facing up to 15 years in federal prison when sentenced on June 26, 2026. He’s agreed to forfeit $1.2 million in proceeds from the criminal enterprise. “We rely on government issued IDs to combat terrorism, hijackings, fraud, money laundering, and a host of other crimes,” said U.S. Attorney Jay Clayton. “OnlyFake’s manufacture of fraudulent IDs and other documents puts us all at risk and must be stopped.”
The OnlyFake prosecution marks law enforcement’s first major victory against AI-powered document forgery—but it won’t be the last. As generative AI becomes more sophisticated and accessible, expect an arms race between synthetic fraud and detection technologies. Your KYC systems just got a lot more complicated.
