current position:Home>Dialogue with the actors of the underground group "KYC" to unveil the veil of the fake KYC industry chain

Dialogue with the actors of the underground group "KYC" to unveil the veil of the fake KYC industry chain

2022-11-23 17:49:02Golden finance

Some unscrupulous project development teams are using KYC actors to defraud the Web3.0 community.In this article, CertiK will expose how underground gangs that hire KYC actors work.

Explanation: In this article, "KYC actors" specifically refer to those who are hired by dishonest project owners and replace them to perform KYC verificationThree parties.This enables projects to gain community trust before insider attacks or exit scams occur.

Conversation with KYC actors

The basic KYC verification may only stay at the level of law-abiding retail investors, but it cannot effectively stop the fraud and money laundering activities of professional criminal gangs.

The CertiK survey found that criminals have come up with many ways to evade routine inspections, and the emergence of professional "KYC actors" also shows that it is not that difficult to escape responsibility.

CertiK investigators discovered and confirmed a KYC actor in a special case, and the subject voluntarily disclosed a lot about the KYC actorworkflow and industry details.

The following will let us walk into the interview content with this "KYC actor", and expose the dark side of the KYC industry while exploring the underground world of Web 3.0.

Actor's Statement

According to the actor, hiring someone to do KYC fraud is extremely cheap and easy.The actor details how he impersonated KYC verifications multiple times over 3 years and explained how easy it is to bypass regular KYC verifications.

In addition, he also showed Proof of Transaction of his KYC performance, and a black market link to find illegal buyers.

However, this undercover actor's life is not as beautiful as a Hollywood star.The interviewee took us on a tour of his humble living environment.According to him, most of the KYC actors are in developing countries, and the compensation for each "role" is very low, and his income is only 20 to 30 US dollars per transaction.

KYC actor black market

Based on these insider tips, our analysts took a deeper look into the KYC black market to gain a better understanding of the problem.

CertiK has thoroughly scanned more than 20 over-the-counter (OTC) black market activities, most of which are in Telegram, Discord and some more demandingThe low-cost mobile phone application is also accompanied by KYC actor recruitment advertisements.

Typically, buyers and sellers meet in these over-the-counter markets and negotiate a price based on their specific transaction requirements, before finalizing the payment, usually using an escrow service.

KYC actors can be priced as low as $8 for less demanding performances, such as only needing to bypass basic KYC verification procedures at a certainOpen an account with a bank or exchange in a developing country.

If you need to face a more complicated verification process, the KYC actor's fee will increase slightly.If the buyer requires the actor to be considered a resident of a country capable of low-risk money laundering, which can effectively reduce the probability of being flagged or rejected and obtain moreService selection, then its "exit price" will be greatly increased.

In some cases, we have found that if a KYC actor needs to play the CEO of a project, their income will be as much as per$500 per week.

After our investigation, we found that this kind of OTC black market is quite common all over the world, especially in Southeast Asia, where the size of its group members ranges from 4,000 to 300,000Between.According to our statistics, a total of more than 500,000 people have become buyers or sellers in these illegal asset exchanges and fake KYC services.

KYC badge fraud

From interviews and follow-up investigations into the black market industry, we observed that the purpose of buyers hiring KYC actors is not to protect privacy or achieve financial freedom, but to obviouslyTake away investors' money.

Community members may know that in the Web 3.0 industry, the team behind a project can sometimes be a major source of operational, reputational, and legal risk.Therefore, more than 40 websites that provide digital asset "KYC badges" have sprung up on the market recently, claiming that they can review the project team.

At last count, these sites have issued over 2000 KYC badges.

However, most of the temporary KYC verification services do not have much practical significance.Because the KYC team lacks the necessary background check technology, professional training, and empirical knowledge, these KYC verifications either only investigate the surface and fail to identify fraudulent behavior, or are too amateurish to detect insider threats.

Therefore, scam gangs can easily bypass the verification process against them, and then use these unreliable KYC badges to mislead and deceive more investors and avoid responsibility for their crimes.

How to effectively validate the project team

Cooperation or investment with Web3.0 startups requires the highest level of research.

Due to the sheer amount of money involved in digital asset projects and the ease with which professional criminals can counterfeit them, simple identity and name checks cannot be relied upon.

The only effective way to verify the team behind a project is to conduct proper and thorough background checks on every key member and ensure that A team of professional and experienced investigators and analysts to operate.

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