Fake IDs are used all the time to verify accounts online. Of course, this is done only when a real ID cannot be used or the user doesn’t wish to reveal their real identity.

Usually, different types of users online have different levels of know-how about things. For example, the layman who mostly only uses the internet to read blogs, send emails, and participate in social media might not even think about using a bogus id.

Most Common Ways in Which Fake Identities are Used Online.

1. How are fake IDs used on cryptocurrency exchanges?

Hardly any country (except a few) has made any headway in recognizing cryptocurrencies as a means of transaction or method of payment. Consequently, cryptocurrency transactions are taxable.

For example, in the US, cryptocurrency holding-based profits are taxable just as if they were stocks or bonds – capital assets. Depending on the term of holding (short term or less than a year and long term or more than a year), the tax rate changes for different types of filings (singly, as a couple, as head of a household, or as an individual).

All cryptocurrency income (including payments, mining rewards, forking rewards, or airdrops) are also taxable as ordinary income. As such, people try to circumvent this taxation by hiding themselves from tax agencies.

How does the IRS (or another legal income tax entity in another country) learn who holds and transacts cryptocurrencies?

Even though cryptocurrencies are decentralized and private, the exchanges that are used to purchase these coins are essentially just like any other company.

As such, they fall under the jurisdiction of the law of the country. IRS has demanded records from exchanges in the past and it can do so any time. IRS can then see who transacts how much, how much they hold, what profit they made, and so on. Exchanges usually have extensive KYCs because the law requires them.

That’s why more and more people are using premium fake ID services to register on cryptocurrency exchanges. Even if the IRS gets a hold of their transactional and profit data, they can’t do anything because the identity is fake. Note that there are consequences to verifying your account with a fraudulent ID. Each exchange platform has different rules and regulations regarding counterfeit IDs.

They range from account suspensions to IP address blocks. Account suspension on an exchange means all your held cryptocurrency is gone because these wallets aren’t technically owned by you, but the company itself.

2. How are Fake IDs Used to Verify Bank Accounts?

An ever-increasing number of people are going for bogus IDs to open new bank accounts. This is done for several reasons. The most common reason is a bad credit score.

When you have a bad credit score tied to your name then getting loan approvals or purchasing on EMI can become very tough. A new bank account might sound like a great option.

But there’s little point to opening the bank account on your real identity that’s already marred with a negative credit rating. It will simply carry over. That’s why people use a fake ID. However, banks are stricter than cryptocurrency exchanges, and quicker in finding identity fraud. It’s more than likely that you’ll face charges or be prosecuted for identity theft or forgery.

Pretending to be someone else when opening a bank account is fraud. It can get you arrested the moment you’re found. Creating or acquiring fake credentials is a criminal offense – even more serious when it involves government-issued IDs such as a passport or a driving license.

Banks now use advanced scanners to check for phony IDs. However, most small-town banks have fairly less security to test for IDs. Small-town branches are, in fact, the go-to for identity fraudsters.

3. How Fake IDs are Used to Avail Discounts?

Fake IDs are used to exploit discount opportunities in bulk. For example, a Hawaii resident with an ID has access to nearly unlimited golf on various courses spread throughout the state. For that reason, people create or buy Hawaii fake licenses to get golf discounts.

Similarly, many states, companies, and organizations provide discounts that are easy to access with no or negligible verification involved. These are perfect for exploitation. People from all over the US capitalize on such discounts by signing up with multiple fake licenses.

4. How are Fake IDs Used in Colleges?

Getting a fake college ID can be anything from a stupid move to get drunk before you’re 21 to a one-time ticket to a decent Friday night with older friends. Most commonly, people cannot use fake IDs to get into college because it will literally destroy their careers after graduation.

However, they do use IDs in colleges and universities for the occasion when their real ID won’t be enough. This mostly includes college kids trying to buy liquor or beer, go to clubs or bars, buy smokes, or buy wine. But here are some hard facts:

  1. Most people end up rarely using their bogus IDs for the fear of getting caught.
  2. Most IDs are only used for less than 6 months.
  3. A great number of IDs fail for various reasons:
  4. The ID wasn’t real enough – this is a problem the gen X college students face rarely, but boomers and millennials face it regularly.
  5. The person couldn’t remember the ID’s details when asked – this mostly happens in clubs or while purchasing items using your fake license.
  6. The picture doesn’t look like the person – even if you’re using your older sibling’s ID, chances are, the picture won’t match. Extremely sophisticated and high-quality fraudulent IDs are an exception, but many gen X and millennial students routinely face problems with facial recognition.
  7. Bars, stores selling alcohol, clubs, and stores selling tobacco products are the usual spots where college and university students get caught using fake IDs.
  8. No matter how fine the ID is, there’s a chance that a bouncer will still stop a college student who looks underage. Not remembering the fake details properly will be the final nail in the coffin.

The common differences in bogus IDs (vs. real facts) include weight, state of residence, height, hair color, and eye color. Note that in 80-90% of the cases, college students will get away with using these id cards.

5. How fake IDs Can be Used to verify Social Media, E-commerce Industry.

Fake IDs are used online extensively for social media accounts, cell phone networks, and internet service provider accounts.

1. Social Media Accounts

A fake social media ID used to be effortlessly easy to create. As most social media platforms were fighting for the newfound interest in online socializing and chatting when it all began (during the time of MySpace, Friendster, Hi5, old Facebook, and Orkut), no one really had any time to curb the use of fake identities.

It was taken for granted that people would use their real credentials and information to sign up for a social media account.

They were very wrong.

Using fake id cards became a common thing. It was used to connect with friends away from family members, or to have a different identity to meet bad ends. The usage didn’t stop there either. Fake IDs were rampant all over social media networks. Some even masqueraded as other important people, fake personalities, celebrities, fictional characters, and on and on.

Quickly, it became a problem. A large portion of social media became “fake”. Used due to social insecurity, to get attention, or in a bid to even spy or cheat on someone – fake IDs started coming on the centerstage. If a social media platform cannot protect the real users from the fake ones, it has essentially failed. That philosophy drove social media platforms to incorporate changes into their profile creation module.

  1. No stylized or fake names were allowed anymore.
  2. Name changes after profile creation was limited.
  3. Regular bulk fake ID removal started based on effective algorithms.
  4. Mass profile creation from a single IP source was limited.
  5. Profiles now required more than just an email address to be created (phone number, for example).
  6. Using pictures that don’t depict a human being as your display picture was penalized – partly thanks to robust, privacy-invading facial recognition systems developed by leading social media networks.

Now, creating fake accounts is quite difficult especially on Facebook. Also, if you’re locked out of your account for any infringement (like if people report your account for fakeness), then it’s much harder to get into fake accounts than real ones. For example, you’re asked to identify friends from pictures. In a fake ID, you have people that are mostly strangers, and therefore, identifying them can be impossible.

Nevertheless, it’s not impossible to create, maintain, and use a fake account. You need to provide information (including pictures and bio details) that resembles a real person. Identity theft and fake identities are both common methods of creating believable personas on social media platforms that are essentially fraudulent.

2. Cell Phone Industry

Getting a new SIM card has become increasingly difficult. Ranging from a verification process to a full-fledged KYC form with document attachments – signing up for a new phone number is relatively more difficult now than it was before.

Fake ID cards are used to buy SIM cards to be used for nefarious purposes. As shown in movies, there are indeed burner phones used with disposable SIMs. But on a much more realistic and commonplace note, fake IDs are used to buy SIMs for purposes involving socializing under fake credentials.

A fake number is also required for creating fake IDs or online identities in general. Many services and platforms require you to have a phone number linked to your account to unlock all features. If you’re making a fake account on such a portal then it makes little sense to use your real number. That’s where a secondary number comes into play. As you will already have some sort of fake identification beforehand, getting a new number of the same bogus ID becomes easier.

3. E-commerce & Digital Industry

Internet service providers or ISPs provide packages to users in specific areas. These internet packages allow the users to access the internet usually through a fiber plugged into a router that sits at the user’s home. The catch is that all the traffic (information on what sites you visit and what content you access) can be seen by the ISP.

All internet connections from an ISP are routed through the same gateway. If an ISP wishes, they can snoop into the traffic of literally anyone using their service. Many use illegal services or consume blocked content. Starting from porn websites and gambling websites to watching censored content, using the dark web for drugs or guns, and so on – the uses are many. If an agency picks up the chatter with some geographical heads-up of such illegal usage then they can contact the ISPs in that region which, in turn, can snoop into their connections to find out who among the users accessed said illegal content.

Though there are other, smarter ways of keeping browsing private such as using a VPN or browsing with Tor, it’s easy to see why people might want an easier way out – one that doesn’t slow their internet speeds down.
That’s where fake IDs come in.

On the other hand, someone who has been using shady services for a few years and transacting on various forums all over the internet might find it convenient to create a fake identity to do their business.
Even if they want to, not everyone:

  1. Can create a fake ID: It takes expertise and if you’re purchasing, then it’s pretty expensive.
  2. Will risk using a fake ID: Only the more seasoned internet user feels comfortably safe and risk-free in using US fake IDs across the web.

You sign-up for a broadband or fiber connection using fake credentials. Now, technicians usually set the connection up at your place. But if you have a little technical know-how, you can give them a spoofed address and later move the connection to your place. Be pretty confident that this is all illegal – starting right from furnishing fake identification to moving an internet connection without notice.

2 thoughts on “Online Verification: The Role of Fake Identities”

  1. Chill

    With the new selfie trick and holding unique number while verifying accounts, you can not use these tricks to verify accounts. The selfie method and writing stuff on paper was introduced by Paxful & Local Bitcoins this year. You maybe lucky if you get verified on Paypal but this method does not work on crypto platforms.

  2. Nupe

    You cannot get away with id verification using a fake id anymore. Many platforms have implemented a new technique to identify fake accounts using online verification softwares such as Jumio. You can present a fake id to get verified but they will also require a selfie along with it. The AI algorithm of the applications such as Jumio will compare the person in the fraudulent identity card with the selfie and if it doesn’t match then your verification is doomed. The application which uses Biometric face comparison are 100% accurate as well.

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