CertiK, a blockchain security platform, has answered the crypto community’s never-ending question – apprehending crypto scammers. Before now, people wonder why it is difficult for the authorities to locate crypto scammers.
According to CertiK, crypto scammers utilize various means to avoid detection. One of them is by buying the identities of others in the black market.
Recently, CertiK posted a blog post revealing the shady ordeals of crypto scammers. CertiK revealed that fraudsters could access a black market where they buy other people’s identities.
In addition, some persons are willing to sell their faces and name for fraudulent activities for $8.00. Sometimes, these individuals become the face of a fake crypto project.
CertiK called them “Professional KYC actors.” The scammers use them to gain the trust of unsuspecting investors. This occurs before the original fraudsters initiate an exit scam strategy.
Furthermore, the fraudsters can tell the KYC actors to open exchanges or bank accounts in their name. CertiK uncovered about 20 dark marketplaces on Gig websites, Discord, Telegram, and mobile apps.
These are places where such operations take place. Operations like opening exchanges or bank accounts are as cheap as $8. High-paying jobs will need the KYC actor to use their name and race on a fake project.
According to CertiK, these KYC actors are from developing nations with low living standards. Meanwhile, some other complex gigs or KYC processes could pay higher.
This occurs if such actors are from nations with low risk of money laundering. For example, KYC actors acting as CEOs for a fake crypto project could receive as much as $500 weekly.
Fake Crypto Project Vetting Platforms
Furthermore, CertiK noted that over 40 fake websites “vet” crypto initiatives. They also award “KYC badges.”
According to the blockchain security firm, such platforms cannot detect insider threats or potential fraud. Additionally, the blockchain platform warned that those behind such vetting platforms lack the experience, training, and tools to conduct such exercises.
Therefore, scammers go to them to receive fake KYC badges for their Ponzi sites or apps. As a result, several crypto investors have lost digital assets worth millions of dollars to these scammers.
However, it appears the battlefield is about to level up. Last month, Mastercard launched a tool that can help combat crypto crime.
The tool utilizes blockchain data and AI to help locate and prevent fraudulent activities. In addition, blockchain transactions are stored on the blockchain network, making them easier to track.
As a result, it is difficult for fraudsters to conceal their trails when they move their stolen loot. Another initiative towards crypto scams is that of the French authorities.
Recently, the authorities used on-chain analysis to locate and penalize five individuals. The individuals were linked to an NFT phishing scam where they stole users’ NFTs.
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