What happens when your identity is stolen -- real story || Avoid CEXs!

[Gallar]

thank you for sharing this very impressive story.
after reading this story I became a little scared, because nowadays a lot of personal data is uploaded on social media.
The point is to be more careful when accessing or entering personal data, especially on the internet.

[1714897312]

1714897312

[Dr.Osh]

So are you still willing to use CEXs?

Yes, I will continue to use CEXs because it is convenient and there is always a solution if you do not want to provide your personal data to such services.

As for this story, there are such stories in every sector of cryptocurrencies, stablecoins, altcoins, exchanges, pools, etc. Just one terrible example does not mean that absolutely the entire industry is structured this way and this awaits all users of centralized exchanges.

yes, it is. This can happen in all industrial sectors. in fact, in my country, there are some people who take advantage of someone's personal data that they get from online loans. with ID cards and selfies, they can easily trick others into borrowing, cheating, and other bad things. I agree that giving our identity to others is a dangerous thing, but we need to know where we give that identity. it's a negative effect of so many industries, and I think there are very many cases like this happening.

[FP91G]

I posted your topic in the Russian
https://bitcointalk.org/index.php?topic=5448055.msg62057071#msg62057071

[GazetaBitcoin]

Thank you! Please check also the PM I sent you.

[yazher]

This kind of story wanted me not to do any KYC at all, especially in some new exchanges with no reputations. As for me, my imagination is what if when I go to another country that I'm not familiar with their laws and regulations and suddenly I get hold at immigration for unknown reasons but the truth is my information got used by the hackers, man! that would be a worse experience of my life, I would have ended up in jail for life because I am a nobody. If Andrew Tate is still in prison for doing nothing with his millions of dollars, what about me then?

That's why even if the exchanges are trusted, you need to think multiple times if you really need to use these exchanges because if not, it's better to choose the ones that don't need KYC.

[MoonOfLife]

Identity theft also has a significant impact on individual privacy. I have been bothered by dozens of different phone numbers for a long time from other stock agents and different sales agents. In addition, I have received several past due notices sent to my home address when I failed to make those loans. I quickly reported the incident to the local police.

In my area, identities are even sold on the black market by banks, school organizations and law enforcement, let alone exchanges. It can be said that today for money, they are willing to do anything, no matter how harmful it is to others. I am also frequently bothered by securities companies as well as insurance companies. But what surprised me more was that my bank account number was also exposed, and the bank was the only one who knew about it.

[DYING_S0UL]

hello sir. I was thinking about translating a post of yours to my local language (Bangla). I am not an professional translators nor my translations are 100% accurate. But I think I may able to translate it if I give it a go. Sure it will take some time to translate.

https://bitcointalk.org/index.php?topic=5444158

Is this post open or somebody already doing the translation?
I'll be waiting for a reply.

p.s : I already sent a PM. But I am confused whether it got sent or not because it was my first time sending anyone any PM. So I am re-replying to this thread.

[cygan]

UniJoin has published a very interesting blog article on the topic, which describes the differences between cexs and dexs in detail and addresses various points

The essay explains the differences between CEXs and DEXs and explains properly why users should head towards DEXs.

https://unijoin.medium.com/why-choose-decentralized-exchanges-894b3d4e279e

[GazetaBitcoin]

Thank you for bumping this thread, cygan!

I also read UniJoin's article and, indeed, it is very useful for this matter. It is, if you want, complementary to this topic, both essays completing each other: one with theory and one with practical examples of what can happen when you lose your identity.

By sharing UniJoin's article here as well I hope that it will reach more readers and, maybe, they'll open their eyes regarding the risks they are facing by using CEXs.

[Z_MBFM]

The purpose of using CEX is to avoid certain things.  Because trading on CEX has a very small fee. But when we use DEX for trading it charges another high fee. On the other hand p2P can be used through CEX and kyc is mandatory for p2P services.  Because of these basically we cannot avoid sex.  And if we have to use CEX then we cannot exclude kyc. There are many centralized exchanges in the crypto market but we can't use all of them of course.  But there are few exchanges which are very trustworthy like Binance, Coimbase, Kucoin and others which I have not mentioned.  So to use cex we need to use trusted and reputable exchanges then our documents will be less likely to be stolen.

[legendbtc]

The purpose of using CEX is to avoid certain things.  Because trading on CEX has a very small fee. But when we use DEX for trading it charges another high fee. On the other hand p2P can be used through CEX and kyc is mandatory for p2P services.  Because of these basically we cannot avoid sex.  And if we have to use CEX then we cannot exclude kyc. There are many centralized exchanges in the crypto market but we can't use all of them of course.  But there are few exchanges which are very trustworthy like Binance, Coimbase, Kucoin and others which I have not mentioned.  So to use cex we need to use trusted and reputable exchanges then our documents will be less likely to be stolen.

Everything has pros and cons. For DEX, we will fully guarantee our privacy but there will be disadvantages such as high transaction fees and not enough services like CEX provides us. Especially for day traders, DEX does not yet offer a daily trading feature. Meanwhile, CEX offers a better experience than DEX but in return the KYC process makes it impossible for us to maintain privacy. For me, both are good and each person has their own choice depending on their needs. I wouldn't be so stubborn as to say that people who are using CEX are idiots just for the sake of privacy.

[leonair]

The purpose of using CEX is to avoid certain things.  Because trading on CEX has a very small fee. But when we use DEX for trading it charges another high fee. On the other hand p2P can be used through CEX and kyc is mandatory for p2P services.  Because of these basically we cannot avoid sex.  And if we have to use CEX then we cannot exclude kyc. There are many centralized exchanges in the crypto market but we can't use all of them of course.  But there are few exchanges which are very trustworthy like Binance, Coimbase, Kucoin and others which I have not mentioned.  So to use cex we need to use trusted and reputable exchanges then our documents will be less likely to be stolen.

Everything has pros and cons. For DEX, we will fully guarantee our privacy but there will be disadvantages such as high transaction fees and not enough services like CEX provides us. Especially for day traders, DEX does not yet offer a daily trading feature. Meanwhile, CEX offers a better experience than DEX but in return the KYC process makes it impossible for us to maintain privacy. For me, both are good and each person has their own choice depending on their needs. I wouldn't be so stubborn as to say that people who are using CEX are idiots just for the sake of privacy.

It is very important for us to use DEX to protect privacy and securely transact funds from being hacked, but p2p services are not available here.  So DEX can be used to trade cryptos and CEX to cash them out as needed.  Because we don't usually need to cash out large amounts, CEX can be used to cash out small amounts as needed.  Or avoiding Cex we can physically sell crypto to known crypto investors. In this case at least we will not have any fear of document theft

[Tony116]

The purpose of using CEX is to avoid certain things.  Because trading on CEX has a very small fee. But when we use DEX for trading it charges another high fee. On the other hand p2P can be used through CEX and kyc is mandatory for p2P services.  Because of these basically we cannot avoid sex.  And if we have to use CEX then we cannot exclude kyc. There are many centralized exchanges in the crypto market but we can't use all of them of course.  But there are few exchanges which are very trustworthy like Binance, Coimbase, Kucoin and others which I have not mentioned.  So to use cex we need to use trusted and reputable exchanges then our documents will be less likely to be stolen.

Everything has pros and cons. For DEX, we will fully guarantee our privacy but there will be disadvantages such as high transaction fees and not enough services like CEX provides us. Especially for day traders, DEX does not yet offer a daily trading feature. Meanwhile, CEX offers a better experience than DEX but in return the KYC process makes it impossible for us to maintain privacy. For me, both are good and each person has their own choice depending on their needs. I wouldn't be so stubborn as to say that people who are using CEX are idiots just for the sake of privacy.

It is very important for us to use DEX to protect privacy and securely transact funds from being hacked, but p2p services are not available here.  So DEX can be used to trade cryptos and CEX to cash them out as needed.  Because we don't usually need to cash out large amounts, CEX can be used to cash out small amounts as needed.  Or avoiding Cex we can physically sell crypto to known crypto investors. In this case at least we will not have any fear of document theft

You are wrong, most DEXs provide p2p features but because the number of DEX users is still limited, p2p trading will be a bit difficult. For example, it will take us longer to find suitable buyers and sellers, we do not have as many options as in CEX. One more thing, p2p on centralized exchanges is no longer pure peer-to-peer trading because of exchange intervention. While that ensures the transaction goes smoothly and we can complain if a dispute arises, it makes the transaction no longer truly peer-to-peer.

By the way, if you use CEX to withdraw or convert to fiat, it means your identity is exposed, it is not necessary for you to use DEX to trade when your identity is known as CEX has be collected.

[GazetaBitcoin]

On the other hand p2P can be used through CEX and kyc is mandatory for p2P services.  Because of these basically we cannot avoid sex.

You may want to rephrase that

Everything has pros and cons. For DEX, we will fully guarantee our privacy

Who is we?

but there will be disadvantages such as high transaction fees and not enough services like CEX provides us. Especially for day traders, DEX does not yet offer a daily trading feature.

Why are you engaged in such a risky thing like day trading? You like losing money?
For those still believing in getting rich over the night I suggest reading this topic: Trade vs. HODL - avoid traps.

For me, both are good and each person has their own choice depending on their needs. I wouldn't be so stubborn as to say that people who are using CEX are idiots just for the sake of privacy.

Some would also say that smoking is healthy or excessive drinking of alcohol is healthy. That doesn't mean that those activities are healthy. You can say and think whatever you want, that will not make CEXs a good phenomena in crypto space.

p2p services are not available here.  So DEX can be used to trade cryptos and CEX to cash them out as needed.  Because we don't usually need to cash out large amounts, CEX can be used to cash out small amounts as needed.  Or avoiding Cex we can physically sell crypto to known crypto investors. In this case at least we will not have any fear of document theft

See? You already answered yourself about how to avoid CEXs although you don't have DEXs in your are.

You are wrong, most DEXs provide p2p features but because the number of DEX users is still limited, p2p trading will be a bit difficult. For example, it will take us longer to find suitable buyers and sellers, we do not have as many options as in CEX.

This happens because so many users headed to CEXs at the beginning. Time passes and people start to understand the huge risks they are confronted with when using CEXs and DEXs came into play recently. The more people will use DEXs the more DEXs will exist. This is an effort we all have to do in order to avoid this plague caused by CEXs.

One more thing, p2p on centralized exchanges is no longer pure peer-to-peer trading because of exchange intervention. While that ensures the transaction goes smoothly and we can complain if a dispute arises, it makes the transaction no longer truly peer-to-peer.

Peer-to-peer services by CEXs are a joke, as you are also fully exposed to all risks involved by CEXs. Stay away of these services!

By the way, if you use CEX to withdraw or convert to fiat, it means your identity is exposed, it is not necessary for you to use DEX to trade when your identity is known as CEX has be collected.

This is true. Never associate crypto with CEXs and with banks!

For more information you can also read this topic of mine: 12 years later and people still don't know to use Bitcoin nor what it's good for.

[oktana]

Aside from losing your hard earned money from these hacks, what you mentioned is another big problem. Merely knowing that someone out there has every information there is about you is worrisome (I won’t speak for everyone, so at least worrisome to me). Centralized exchanges know the dangers involved in using their services which is why they must have stated something to back it up in their privacy policy. However, they won’t tell you the dangers because that will obviously cause bad business for them, and most of us sheepishly click on “Agree”. Hopefully people learn more about what goes on centralized exchanges, in fact, what could go on (because it may not be now but a lot could go wrong).

[panganib999]

That's a massive ordeal if I ever read one. Imagine getting your whole identity stolen, the cops knowing that it was stolen in the first place, and then getting into the same altercation once again cause the cops failed to understand that your information was compromised from the get-go. In times like these they should put people whose information got stolen into some sort of filing group that doesn't kick them out of the suspect lists, but at least sets the expectations for the investigators that these people got their information compromised in the past, and they may have to employ a different style of apprehension or receiving anything of value from these people.

Just hoping this would be the last that he'd get into this situation, but if he does get into one once again, what are the possibilities of having his identity be replaced, just like what they do for witness protection?

[legendbtc]

The purpose of using CEX is to avoid certain things.  Because trading on CEX has a very small fee. But when we use DEX for trading it charges another high fee. On the other hand p2P can be used through CEX and kyc is mandatory for p2P services.  Because of these basically we cannot avoid sex.  And if we have to use CEX then we cannot exclude kyc. There are many centralized exchanges in the crypto market but we can't use all of them of course.  But there are few exchanges which are very trustworthy like Binance, Coimbase, Kucoin and others which I have not mentioned.  So to use cex we need to use trusted and reputable exchanges then our documents will be less likely to be stolen.

Everything has pros and cons. For DEX, we will fully guarantee our privacy but there will be disadvantages such as high transaction fees and not enough services like CEX provides us. Especially for day traders, DEX does not yet offer a daily trading feature. Meanwhile, CEX offers a better experience than DEX but in return the KYC process makes it impossible for us to maintain privacy. For me, both are good and each person has their own choice depending on their needs. I wouldn't be so stubborn as to say that people who are using CEX are idiots just for the sake of privacy.

It is very important for us to use DEX to protect privacy and securely transact funds from being hacked, but p2p services are not available here.  So DEX can be used to trade cryptos and CEX to cash them out as needed.  Because we don't usually need to cash out large amounts, CEX can be used to cash out small amounts as needed.  Or avoiding Cex we can physically sell crypto to known crypto investors. In this case at least we will not have any fear of document theft

You are wrong, most DEXs provide p2p features but because the number of DEX users is still limited, p2p trading will be a bit difficult. For example, it will take us longer to find suitable buyers and sellers, we do not have as many options as in CEX. One more thing, p2p on centralized exchanges is no longer pure peer-to-peer trading because of exchange intervention. While that ensures the transaction goes smoothly and we can complain if a dispute arises, it makes the transaction no longer truly peer-to-peer.

By the way, if you use CEX to withdraw or convert to fiat, it means your identity is exposed, it is not necessary for you to use DEX to trade when your identity is known as CEX has be collected.

Although I don't use DEX often because it still has many shortcomings as I mentioned, I have to agree with what you said. All DEXs have a p2p feature and it is truly p2p trading following the concept that bitcoin created. P2P on centralized exchanges is not P2P because of the intervention of intermediaries.

But as I said, for those who don't care about privacy, CEX is a better choice than DEX because it offers more useful services and features, especially for day traders.

but there will be disadvantages such as high transaction fees and not enough services like CEX provides us. Especially for day traders, DEX does not yet offer a daily trading feature.

Why are you engaged in such a risky thing like day trading? You like losing money?
For those still believing in getting rich over the night I suggest reading this topic: Trade vs. HODL - avoid traps.

Thanks for the reminder but I know what I'm doing with my money. Trading is really risky and many people have lost money from it but just because many people lost does not mean all or the rest did too. I have been trading forex for many years and now I am also making profits from cryptocurrency trading. Why should I stop? Just because many people have lost money with it?

For me, both are good and each person has their own choice depending on their needs. I wouldn't be so stubborn as to say that people who are using CEX are idiots just for the sake of privacy.

Some would also say that smoking is healthy or excessive drinking of alcohol is healthy. That doesn't mean that those activities are healthy. You can say and think whatever you want, that will not make CEXs a good phenomena in crypto space.

If you are just a long-term investor, only buying bitcoin and holding it, you should stay away from CEX because of the risks it brings not only in terms of privacy but also the risk of us losing assets like FTX did. But like I said, I'm a trader, I know what I'm doing with my money and I'm willing to take the risk if that happens.

[lombok]

P2P in CEX and DEX exchanges requires KYC. From this KYC data may be leaked or traded. However, in my opinion, the data leak could also come from other methods, or not from CEX or DEX exchanges but from other applications that involve personal data. Phishing regarding this identity has existed since before the CEX exchange existed. Like carding activities, isn't this also an illegal activity that also involves buying and selling personal data on the black market?

[GazetaBitcoin]

P2P in CEX and DEX exchanges requires KYC.

DEXs do not require KYC (or, at least, most of them).

[shawonngp]

The purpose of using CEX is to avoid certain things.  Because trading on CEX has a very small fee. But when we use DEX for trading it charges another high fee. On the other hand p2P can be used through CEX and kyc is mandatory for p2P services.  Because of these basically we cannot avoid sex.  And if we have to use CEX then we cannot exclude kyc. There are many centralized exchanges in the crypto market but we can't use all of them of course.  But there are few exchanges which are very trustworthy like Binance, Coimbase, Kucoin and others which I have not mentioned.  So to use cex we need to use trusted and reputable exchanges then our documents will be less likely to be stolen.

Everything has pros and cons. For DEX, we will fully guarantee our privacy but there will be disadvantages such as high transaction fees and not enough services like CEX provides us. Especially for day traders, DEX does not yet offer a daily trading feature. Meanwhile, CEX offers a better experience than DEX but in return the KYC process makes it impossible for us to maintain privacy. For me, both are good and each person has their own choice depending on their needs. I wouldn't be so stubborn as to say that people who are using CEX are idiots just for the sake of privacy.

It is very important for us to use DEX to protect privacy and securely transact funds from being hacked, but p2p services are not available here.  So DEX can be used to trade cryptos and CEX to cash them out as needed.  Because we don't usually need to cash out large amounts, CEX can be used to cash out small amounts as needed.  Or avoiding Cex we can physically sell crypto to known crypto investors. In this case at least we will not have any fear of document theft

But for some limitation still not much people are using DEX, where DEX is more safe in comparing CEX. As you mentioned, there are no way to P2P option in DEX. In my end, i can't stop to using CEX because crypto is not legal in my country, so it's very risk to sell crypto in physically.