Crypto scammers use black market identities to avoid detection: CertiK
Blockchain security firm has discovered a new tactic being used by crypto scammers as the industry continues to improve its threat detection capabilities fraud.
New
Crypto crooks are tapping into a 'cheap and easy' black market of individuals willing to put their names and faces on fraudulent schemes - all for the low price of $8, the security firm has found CertiK blockchain.
These individuals, described by CertiK as "professional KYC actors", would, in some cases, voluntarily become the verified face of a crypto project, gaining the trust of the crypto community before an "insider hack or exit scam".
Other uses of these KYC actors include using their identity to open bank or exchange accounts in the name of the bad actors.
According to a November 17 blog post, CertiK analysts were able to find over 20 underground marketplaces hosted on Telegram, Discord, mobile apps, and gig websites to recruit KYC actors for as little as $8 for simple "concerts" like passing. the KYC requirements "to open a bank account or an exchange account in a developing country".
The more expensive jobs involve the KYC actor putting their face and name on a fraudulent project. CertiK noted that most actors are apparently exploited because they are based in developing countries "with an above-average concentration in Southeast Asia" and paid around $20 or $30 per role.
Meanwhile, more complex verification requirements or processes could fetch an even higher asking price, particularly if KYC actors reside in countries considered to have low money laundering risk.
Some roles paid up to $500 per week if an actor was to play the role of CEO for a malicious project, but the market for KYC actors was "marginal" compared to the market for bank accounts and crypto exchanges already KYCed according to CertiK.
Crypto to fiat conversions – or vice-versa – were also cited as a significant percentage of trades seen on these marketplaces, with CertiK calculating that over 500,000 members in marketplace sizes ranging from 4,000 to 300,000 were buyers and sellers in these black marketplaces. markets.
Related:...
Blockchain security firm has discovered a new tactic being used by crypto scammers as the industry continues to improve its threat detection capabilities fraud.
New
Crypto crooks are tapping into a 'cheap and easy' black market of individuals willing to put their names and faces on fraudulent schemes - all for the low price of $8, the security firm has found CertiK blockchain.
These individuals, described by CertiK as "professional KYC actors", would, in some cases, voluntarily become the verified face of a crypto project, gaining the trust of the crypto community before an "insider hack or exit scam".
Other uses of these KYC actors include using their identity to open bank or exchange accounts in the name of the bad actors.
According to a November 17 blog post, CertiK analysts were able to find over 20 underground marketplaces hosted on Telegram, Discord, mobile apps, and gig websites to recruit KYC actors for as little as $8 for simple "concerts" like passing. the KYC requirements "to open a bank account or an exchange account in a developing country".
The more expensive jobs involve the KYC actor putting their face and name on a fraudulent project. CertiK noted that most actors are apparently exploited because they are based in developing countries "with an above-average concentration in Southeast Asia" and paid around $20 or $30 per role.
Meanwhile, more complex verification requirements or processes could fetch an even higher asking price, particularly if KYC actors reside in countries considered to have low money laundering risk.
Some roles paid up to $500 per week if an actor was to play the role of CEO for a malicious project, but the market for KYC actors was "marginal" compared to the market for bank accounts and crypto exchanges already KYCed according to CertiK.
Crypto to fiat conversions – or vice-versa – were also cited as a significant percentage of trades seen on these marketplaces, with CertiK calculating that over 500,000 members in marketplace sizes ranging from 4,000 to 300,000 were buyers and sellers in these black marketplaces. markets.
Related:...
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