The U.S. Lawyer’s Workplace for the District of New Mexico introduced Thursday that federal authorities have executed a court-authorized seizure of two domains and one affiliated weblog related to VerifTools, an internet market peddling counterfeit driver’s licenses, passports, and different state- and country-issued identification paperwork.
Working underneath the banner of VerifTools since 2020, the enterprise leveraged the anonymity of cryptocurrency and underground DNS infrastructures to facilitate identification fraud on a worldwide scale.
Key Takeaways1. Seized VerifTools domains, blocking $6.4 M in fake-ID gross sales.2. FBI used DNS sinkholing and Tor forensics.3. US-Dutch regulation enforcement collaboration on identification theft and cash laundering fees.
The Federal Bureau of Investigation (FBI) initiated Operation Iron Seal in August 2022 after uncovering a conspiracy to take advantage of stolen Personally Identifiable Data (PII) for unauthorized entry to cryptocurrency accounts and illicit transfers on the blockchain.
VerifTools marketed counterfeit digital and bodily IDs for all 50 U.S. states and a number of international jurisdictions, accepting funds in Bitcoin (BTC) and Monero (XMR) through privacy-enhanced wallets.
VerifTools market takendown
Based on court docket filings, {the marketplace} generated a minimum of $6.4 million in illicit proceeds. Brokers obtained and verified VerifTools’ backend supply code by way of a managed buy of counterfeit New Mexico driver’s licenses priced at simply $9 per doc.
Utilizing cryptocurrency mixing companies and Tor‐primarily based hidden companies, operators obscured transaction trails and server places.
FBI analysts deployed customary DNS sinkholing methods to redirect VerifTools’ top-level domains (TLDs) to a government-controlled server, successfully neutralizing the websites and preserving proof.
“If you happen to construct or promote instruments that allow offenders impersonate victims, you might be a part of the crime,” Performing U.S. Lawyer Ryan Ellison acknowledged, citing a seizure warrant.
Philip Russell, Performing Particular Agent in Cost of the FBI’s Albuquerque Division, highlighted the technical complexity of dismantling such platforms:
“The elimination of this market is a significant step in defending the general public from fraud and identification theft crime. We leveraged superior cyber forensics packet seize (PCAP) evaluation, deep packet inspection (DPI), and WHOIS file mapping to determine infrastructure nodes and operators.”
The sale or switch of possession of false identification paperwork carries penalties of as much as 15 years imprisonment.
The Justice Division’s Workplace of Worldwide Affairs facilitated mutual authorized help requests, whereas prosecutors consolidated fees, together with Conspiracy to Commit Aggravated Identification Theft and Cash Laundering.
The FBI’s Albuquerque Area Workplace led the technical takedown, executing covert operations to grab management of VerifTools’ DNS information and preserving forensic photographs of server onerous drives.
Area registrars have been served with ex parte seizure orders, and up to date WHOIS entries now mirror registry standing: “CONFISCATED BY THE UNITED STATES GOVERNMENT.”
Authorities proceed to pursue the remaining cybercriminal community answerable for distributing these instruments worldwide.
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