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Author Topic: [2018-07-12] Crowdsale KYC is Fueling a Black Market for Fake ID  (Read 75 times)
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July 12, 2018, 12:41:45 PM
 #1


https://news.bitcoin.com/crowdsale-kyc-is-fueling-a-black-market-for-fake-id/

KYC for crowdsales was meant to add oversight and legitimacy to a largely unregulated space. Instead it’s left investors susceptible to data breaches, identity theft and blackmail. Given the hazards, it’s understandable that some ICO investors have resorted to buying fake ID.

KYC Has Created a Thriving Black Market for Fake IDs
Buying fake ID is a rite of passage for teenagers desiring to be sold alcohol. But a new market for fake ID has sprung up on the web, whose buyers crave nothing more illicit than admittance to the latest crowdsale. Know Your Customer (KYC) requirements, which are now widespread, were designed to screen out US and Chinese investors, and to dispel the notion that ICOs are unregulated. But rather than bolstering the industry’s reputation, they’ve created an unholy mess.

How can this be avoided?

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July 12, 2018, 02:50:57 PM
 #2

How can this be avoided?

If my heart was set on doing some of this ICO stuff I might do the same if it was easily available. In fact the ICO operators should have a hidden page with ID ready to purchase for preferred customers.

How much exchange ID is already fake? It's just a couple of jpegs you can pick up from anywhere if you know where to look.

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July 12, 2018, 03:20:18 PM
 #3

The verification process of this cryptocurrency exchange and ICO are proven to be easily breach by people compared to the verification process when it comes to stock brokers. In the latter you must show up physically in one of their branches in order to submit your valid documents that requirement itself proves that showing yourself as a real person is hard to pass. I don't know if this is related to some people wanting to still be anonymous or not or they really just want to evade some taxes. Government regulation should really take their place when it comes to KYC in exchanges and ICO crowdsales.

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July 12, 2018, 03:36:48 PM
 #4

How can this be avoided?
I guess this problem cant really be solved out unless if those persons or companies that do ask such ID's coz of KYC procedures would be kept privately and wont leaked out or being used into other means then this thing would be easily shut down. If there would be no leaks then there would be no sales as simple as that but we do know not all companies or person would have the same mindset or concern where there are really people would really be greedy enough just to take these steps to earn more money. They dont really care at all as long they can benefit from it.
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July 12, 2018, 04:05:08 PM
 #5

As much as the government is on the side of cryptocurrencies these kinds of things will make them push into more tougher kinds of regulations and a more stricter enforcement of laws. All they just need to do is to provide legitimate documents in order to proceed with the crowdsale but they are simply pushing it by breaking the law. Now this future ICOs will have the potential to have tougher requirements like a physical registration or even a valid ID that will issue by the government to be a licensed participant of crowdsales.

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July 12, 2018, 04:22:38 PM
 #6


https://news.bitcoin.com/crowdsale-kyc-is-fueling-a-black-market-for-fake-id/

KYC for crowdsales was meant to add oversight and legitimacy to a largely unregulated space. Instead it’s left investors susceptible to data breaches, identity theft and blackmail. Given the hazards, it’s understandable that some ICO investors have resorted to buying fake ID.

KYC Has Created a Thriving Black Market for Fake IDs
Buying fake ID is a rite of passage for teenagers desiring to be sold alcohol. But a new market for fake ID has sprung up on the web, whose buyers crave nothing more illicit than admittance to the latest crowdsale. Know Your Customer (KYC) requirements, which are now widespread, were designed to screen out US and Chinese investors, and to dispel the notion that ICOs are unregulated. But rather than bolstering the industry’s reputation, they’ve created an unholy mess.

How can this be avoided?
Investors can avoid KYC by purchasing tokens already on the exchange. Of course, it will already be without bonuses, but the price on the stock exchange first also falls in price.
Participants in the ICO generosity campaign need to require ICO teams to provide a basis for such an audit. I'm sure that if we understand, ICO teams do not have the right to require us to pass such a test, because we are not investors.

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July 12, 2018, 04:56:54 PM
 #7

KYC is against the anonymous nature of the cryptocurrencies, so it will be avoided the maximum possible.

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July 12, 2018, 09:03:33 PM
 #8

does anyone know any place where i can buy fake ids or who offers this service? in the bitcoin.com post there was a telegram example so does anyone know the telegram group name or something?
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July 12, 2018, 09:15:46 PM
 #9

does anyone know any place where i can buy fake ids or who offers this service? in the bitcoin.com post there was a telegram example so does anyone know the telegram group name or something?

Why not exercise your creativity and create them yourself? A bit of fun and you can pass them on to your friends.

As a private joke start with this lot as a basis - https://mashable.com/2013/11/21/ross-ulbricht-silk-road-murder-journal/?europe=true#rXJiDgRxXmqV

Changing the pic might help though.

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July 12, 2018, 09:23:04 PM
 #10

How much exchange ID is already fake? It's just a couple of jpegs you can pick up from anywhere if you know where to look.

it depends on the exchange. it's much harder to game exchanges that require selfies, and i believe that's becoming the norm. that's a far bigger hurdle than just buying an ID on the darknet. you also need very in-depth personal information sometimes. gemini requires SSN (GDAX will also in many cases) and other info, and even requires REAL ID-compliant ID, which will be harder to get on the darknet. and they do perform background checks to verify the personal info you provide.

does anyone know any place where i can buy fake ids or who offers this service? in the bitcoin.com post there was a telegram example so does anyone know the telegram group name or something?

you're better off asking here: https://www.reddit.com/r/darknet/

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July 12, 2018, 10:57:41 PM
 #11

In short, instead of fighting a crime, we create conditions for people to create one more method of committing crimes. now become more complicated because many people will buy false identity to participate in these ICOs that many of them are created by scammers. But this problem starts from the top, starts with the creator of ICO who is scammer, creates a website, creates a false office, creates a fake team, creates false social networking profiles, everything to deceive people. So people learn from scammers who create ICOs to commit crimes

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July 12, 2018, 11:45:12 PM
 #12

it depends on the exchange. it's much harder to game exchanges that require selfies, and i believe that's becoming the norm.

It's been a long time since I verified myself anywhere and I don't remember any selfies. It makes sense that that's what they want these days. Still, even more of a juicy challenge for those photoshoppers out there.

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July 13, 2018, 11:30:34 PM
 #13

it depends on the exchange. it's much harder to game exchanges that require selfies, and i believe that's becoming the norm.

It's been a long time since I verified myself anywhere and I don't remember any selfies. It makes sense that that's what they want these days. Still, even more of a juicy challenge for those photoshoppers out there.

yeah, poloniex rolled out selfie requirements earlier this year. coinbase has had them for a while. maybe it's more of a USA thing, not sure.

you'd need to have some sick photoshop skills to pull that off, lol. and it won't work in some cases. coinbase makes it really hard---they force you to verify through your webcam. no jpg uploads.

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July 14, 2018, 12:35:01 AM
 #14

you'd need to have some sick photoshop skills to pull that off, lol. and it won't work in some cases. coinbase makes it really hard---they force you to verify through your webcam. no jpg uploads.

I guess the verification through webcam can't be fake. This is the best way to identify a customer, but it won't be widely adopted, I think. Actually, the problem and the threat are the ICO scammers. These teams collect the personal data and the crypto currencies, then vanish. They might to sell the KYC fake IDs.
veleten
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July 14, 2018, 10:49:50 AM
 #15

it is worth mentioning that many of the ICOs are adding gas to the fire by supplying ID's to the market
I see it as a Fake ID cycle where you get a fake id to enter an ICO then this shady ICO sells your fake id and your data
to some others who want to enter-a perfect circle

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