Identity Verification

Want to Fight Crypto Frauds? Identity Verification Is the Answer!

The technologically advanced world has cryptocurrencies and stablecoins as a mainstream market, pushed along further now by the worldwide impacts of COVID-19. Of course, the pandemic would be written as the biggest nightmare for almost all the industries but its one upside and probably the only one is that it has revolutionized and expanded the applications of online banking and online payment solutions along with the large adoption of cryptocurrencies.   As a result, the cryptocurrency market size is estimated to grow from USD 1.6 billion in 2021 to USD 2.2 billion by 2026, at a CAGR of 7.1%. 

The world moving towards digitized solutions and the concept of digital assets is a definite yes in this tech-driven world. That’s a good thing, no doubt. But the bad side is that cybercriminals also love digital money and do not hesitate to get it through any means. When businesses that deal with digital assets are learning and struggling to cope with the new trends in technology, fraudsters are reaping the benefits of the situation. 

3 Common Cryptocurrency Scams 

  1. Imposter Websites 

As soon as you get involved in a digital monetary system such as cryptocurrency, it would not take long to detect risks present in these transactions. It is not about the cryptocurrency market but the scams prevalent in almost every industry. One must be aware of the possibilities that they may lose their crypto investments before they consider spending in different exchange platforms. 

At times, the website seems exactly identical to the one you think you are visiting, but it may direct you to some other platform for investment. For instance, you follow the link that may seem like a legal one, but imposters have developed a false URL having a zero in it rather than the letter “o.” As a result, the website will not lead you to the crypto investment that you have already researched. To prevent this from happening, one needs to be careful in typing the URL into their browser. Double-checking the URL is the thing that always works. 

  1. Fake Tweets and other Social Media Scams 

Just like following a celebrity on social media does not assure you if you are following a genuine account, the same goes for KYC crypto, where impersonators are violent. Never trust offers that come from Facebook or Twitter, especially if an impossible outcome is probable. Social media users must consider that fake accounts are easy to make, and they are the widely used tactic of fraudsters.  

If anyone from these platforms asks for crypto investment, no matter how small it is, the chances are you are never going to get it back. So do not become a fool because others are replying to the offer; they can be bots, either. 

  1. Email Scams

Nowadays, fraudsters send legitimate-looking emails that trick users into falling their victims. Customers receiving such emails need to be extra careful and watch if the logo and branding are identical? Can the user identify if the email address is the legitimate one of the company? Before investing in cryptocurrency, the user must check this information. The ability to check it is one of the reasons to select a company with real resources working in it. The rule is to never invest in a company if you have even the slightest doubt in the email. Learn to stay safe and protect yourself before you invest in the emerging cryptocurrency market. 

KYC Building Security and Trust – Way to Fight Crypto Frauds

With many industries approaching crypto differently, developing a global KYC is challenging. However, with some commonalities, the method can be simplified and release the burden from compliance teams. 

Of course, there are laws and regulations in place in the crypto market, which has set the bar high with time. However, as a new industry market, ensuring that the industries are following all the laws and that the transactions being operated are fair and clean can be somewhat tricky. An inter-governmental body Financial Action Task Force (FATF), has made the international standards to prevent money laundering suggested that enterprises must adhere to the laws to mitigate the risk of financial frauds for any new product, technology, and process. In this regard, any advanced or new crypto technology falls under the AML requirements. 

FATF published a report that focused on developing a risk-based approach to CDD (customer due diligence) requirements to prevent these risks. The best way to keep financial criminals and money launderers away is by practicing the KYC compliance procedures at the time of account opening. The customer data gathered at the onboarding stage also helps in the monitoring process, as it gives insights into account and estimated use of funds. 


As cryptocurrency is rising and is considered the future, understanding the associated risks and ways to mitigate those risks is imperative to gaining acceptance from regulatory bodies and investors. Having a swift KYC process in place, it is easy to build trust

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