Scammers buy KYC Dark Web identities for crypto theft by DailyCoin


© Reuters. Report: Scammers buy KYC identities on the dark web for crypto theft

  • Scammers buy KYC information for as little as $8.
  • “Professional KYC actors” take on CEO roles for fraudulent crypto projects.
  • Most websites that audit crypto projects are “worthless” and “superficial”.

A Certik investigation released on Thursday revealed a thriving underground market where people sell their personal information to scammers who commit crypto theft for as low as $8.

Prior to an “insider hack or exit fraud,” these “professional KYC actors,” as CertiK calls them, could act as the verified face of a cryptocurrency project to gain community trust.

KYC for Hire on the Dark Web

The identities of these know-your-customer (KYC) players are also used in other instances, such as when setting up bank or exchange accounts in their own name for cryptocurrency scammers.

CertiK found over 20 dark web marketplaces where KYC actors can be hired for as little as $8 for simple “gigs”. Among these gigs is meeting the KYC requirements to open a bank account or a foreign exchange account in a developing country. There are many ways to access these markets, such as through Telegram, Discord, mobile apps, and niche websites.

For more expensive jobs, the KYC actor usually has to put their own name and face on a fake transaction. As CertiK pointed out, most actors are located in poor countries “with an above-average concentration in Southeast Asia” and are only paid $20-30 each for each task.

It is possible that stricter KYC criteria or verification processes will come with a higher price tag, especially if the KYC actors in question are residents of low money laundering risk countries.

CertiK found the market for KYC players to be “minimal” compared to the market for previously KYCed crypto bank and exchange accounts, where positions like CEO for dodgy projects could pay up to $500 per week.

There are over 40 sites that claim to audit crypto projects and give out “KYC badges”. However, CertiK warned that these services are useless because they don’t go far enough to stop fraud or are not good enough at detecting insider risk.

They also said that the people who work for these websites do not have the necessary research skills, training or experience. This means that scammers could use these certificates to deceive the public and potential investors.

on the reverse

The crypto industry has fought back against the scammers, and they are starting to make headway. Mastercard (NYSE:), a conventional financial juggernaut, introduces a fraud detection tool in October that uses AI and blockchain data to detect and prevent fraud.

Why You Should Care

KYC steps are an important part of making the crypto world safer and less risky. Before choosing whether or not to implement KYC standards and processes, organizations must carefully weigh the risks and benefits, where the benefits materialize in the form of reduced fraud, money laundering and theft. of identity.

Learn more about cryptocurrency scams:

Research: BNB Chain Demonstrates Highest Vulnerability to Crypto Scams and All-in Draws

Binance CEO Warns Crypto Enthusiasts About Google Phishing Scams (NASDAQ:)

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