Federal authorities take control of digital marketplaces selling counterfeit identity papers to internet criminals in the United States
The Federal Bureau of Investigation (FBI) has announced the successful takedown of VerifTools, an online marketplace selling counterfeit identity documents. The operation, known as Operation Iron Seal, was initiated in August 2022 to combat the exploitation of stolen Personally Identifiable Information (PII) by VerifTools.
Agents obtained and verified VerifTools' backend source code through a controlled purchase of counterfeit New Mexico driver's licenses. The FBI's Albuquerque Field Office led the technical takedown, executing covert operations to seize control of VerifTools' DNS records and preserving forensic images of server hard drives.
Investigations by the FBI, starting in 2022, revealed the platform's global activity and estimated illegal revenue of around 6.4 million US dollars. The operators behind the sale and distribution of fake identification documents on the VerifTools platform have not been named specifically but were part of an illegal operation dismantled by Dutch and US authorities.
VerifTools advertised counterfeit digital and physical IDs for all 50 U.S. states and multiple foreign jurisdictions. Payments were accepted in Bitcoin (BTC) and Monero (XMR) via privacy-enhanced wallets, and the enterprise used cryptocurrency and underground DNS infrastructures to facilitate identity fraud on a global scale.
The U.S. Attorney's Office for the District of New Mexico announced the seizure of two domain names and one affiliated blog associated with VerifTools. Domain registrars were served with ex parte seizure orders, and updated WHOIS entries now reflect registry status: "CONFISCATED BY THE UNITED STATES GOVERNMENT."
Prosecutors consolidated charges, including Conspiracy to Commit Aggravated Identity Theft and Money Laundering. The sale or transfer of possession of false identification documents carries penalties of up to 15 years imprisonment.
Authorities continue to pursue the remaining cybercriminal network responsible for distributing these tools worldwide. Acting U.S. Attorney Ryan Ellison stated that anyone building or selling tools for identity impersonation is part of the crime.
The Justice Department's Office of International Affairs facilitated mutual legal assistance requests to support the investigation and prosecution of this global operation. The FBI used advanced cyber forensics packet capture (PCAP) analysis, deep packet inspection (DPI), and WHOIS record mapping to identify infrastructure nodes and operators of VerifTools.
The FBI's efforts in dismantling VerifTools serve as a reminder of the ongoing fight against cybercrime and the importance of protecting sensitive personal information.
