Cryptocurrencies are an ideal place for scammers and swindlers. Increased anonymity, lack of control, inability to cancel transactions. All this contributes to fraud and deception. But every day users become more literate, and law enforcement officers become more skillful. Therefore, scammers come up with new tricks to steal tokens and coins.
A few years ago, a new method of deception appeared on the Internet, which can be called a KYC scam.
What is KYC/AML scam?
KYC (Know Your Client) and AML (Anti-Money Laundering).
These are special procedures for verifying the identity of clients and blocking assets obtained by criminal means. In simple terms, KYC and AML are the verification of a user’s identity. In the USA, Canada, the United Kingdom, and the European Union, regulators require all cryptocurrency services to verify clients. There is nothing wrong with this procedure itself. Typically, the client provides scans of his passport to the exchange or payment service, fills out a form, and then freely receives and sends money.
A few years ago, a new method of deception appeared on the Internet, which can be called a KYC scam.
What is KYC/AML scam?
KYC (Know Your Client) and AML (Anti-Money Laundering).
These are special procedures for verifying the identity of clients and blocking assets obtained by criminal means. In simple terms, KYC and AML are the verification of a user’s identity. In the USA, Canada, the United Kingdom, and the European Union, regulators require all cryptocurrency services to verify clients. There is nothing wrong with this procedure itself. Typically, the client provides scans of his passport to the exchange or payment service, fills out a form, and then freely receives and sends money.