Crypto Scammers are Buying Fake Identities on the Black Market for as Little as $8 – Here’s What You Need to Know
A vast underground ring of know-your-customer (KYC) actors for hire has been increasingly used by rogue developers with the aim to scam Web3 communities, according to a recent analysis by security-focused ranking platform CertiK.
“Basic KYC verifications are regularly effective at annoying honest retail users, but unfortunately less so at stopping determined criminals from defrauding victims and laundering their stolen funds. Indeed, CertiK’s investigation confirms that criminals have developed several ways to bypass regular verifications, and the existence of professional 'KYC actors' illustrates how easy it is to escape accountability,” according to the company.
CertiK admits that among the numerous tactics employed by crypto developers who seek to scam communities and investors, using a KYC actor is one of the most fascinating tactics that have been detected and investigated by the firm to date.
“In our context, a KYC actor is an individual specifically hired to KYC on behalf of rogue project owners looking to gain trust in the crypto community prior to an insider hack or an exit scam,” CertiK says, providing insights on the process based on an interview its experts held with one of the identified KYC actors.
“According to this actor, it is surprisingly cheap and easy to hire someone to KYC for a fraudulent endeavor. He detailed how he had been posing for fake KYCs for over 3 years, and explained how simple it was for him to pass a regular KYC verification,” the platform said.
This said, the reality of the KYC actor’s undercover life is not as glamorous as some could expect, as most KYC actors operate in developing countries and are paid a minor amount for each ‘role’ they are given by criminals. The interviewed
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