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

[BenCodie]

It didn't happen after using a centralized exchange, yet he lives the same thing as one which had his identity stolen by hackers from a centralized exchange or from any other source.

Good campaign Gazeta but this really does not validate the case. In fact, it hurts the validity of the whole story.

If the man's identity was mishandled by a centralized exchange, then this story would serve as strong precedent. However, this man could have easily had been a wrong doer himself, and at some point sold his identity or put it in the wrong hands by his own means.

I understand the point that "This could happen to you if you give your identity to CEXs" however it's not "This is what happened after someone gave their identity to a CEX"

I for one am against CEXs for the reasons stated in the OP, as I agree, it's completely possible....but sharing this story and using an unrelated story to validate the point? Not sure if that's good authorship.

That's just my 2 cents though.

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[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.

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.

If you are a day trader, you really don't have too many options, I understand that. You are also someone who has participated in this market for a long time, and you know everything that has been going on, but I still sincerely advise you. You should limit your use of CEX and don't put too much trust in them, don't put all your bitcoins in them. The risk of CEX is not only that our privacy and identity are exposed, but there is also a risk like the collapse of FTX that you also know. Our safety is as important as our making a profit.

[Learn Bitcoin]

A friendly bump!

I was watching YouTube videos last night and saw an old video where they showed how a Bangladeshi guy was caught with an illegal VoIP calling system and over 3500 SIM cards. Usually, A Bangladeshi citizen can have a maximum of 15 SIM cards with his national identity and biometrics. Now, the question is, how the hell did this guy manage to buy 3500 SIM cards?

If you are guessing that their identity was stolen, then yes. You are right! But their identity wasn't stolen from CEX, but from local SIM selling points. Some of the SIM sellers were collecting finger prints in silicon rubber and identifying information by taking a picture from phones. This could be another example of why you should be careful with your identity. Here is the video; https://www.youtube.com/watch?v=HVrg9HInRJw

[GazetaBitcoin]

If you are guessing that their identity was stolen, then yes. You are right! But their identity wasn't stolen from CEX, but from local SIM selling points. Some of the SIM sellers were collecting finger prints in silicon rubber and identifying information by taking a picture from phones. This could be another example of why you should be careful with your identity. Here is the video; https://www.youtube.com/watch?v=HVrg9HInRJw

Thank you for this Learn Bitcoin! So yes, this story is similar to OP, which describes an event which happened without using a CEx. Such examples should show everybody how thin is the line between having an identity and losing it afterwards. It may happen because people make accidents but also without their will... But using a CEx is, for sure, a way of offering your identity willingly to a third party so such unfortunate events can happen even more often.

[dothebeats]

This is why I'm wary in signing up for different online services that require KYC. Be it CEXs, online shopping apps--you name it, I just try to avoid using them as much as possible when there are alternatives that works the same. You'll never know how much info they're keeping and selling to other parties, especially if it's stated within their ToS that they can sell what they receive once you click 'Agree' on their ToS.

Here in the Philippines, a popular mobile wallet called Gcash is often the target of these guys. Idk how were they able to get our personal numbers but they're actively sending phishing SMS sometimes with our full names for us to believe that the message is legitimate. One theory is that after the mandatory sim registration, someone gained access to the database and are constantly trying to phish for more info to be later used on other crimes.

This one is more extreme though, as they were able to get fingerprints and other such personal information that are only obtainable through legitimate means. Bad actors are increasingly getting smarter and devious by the day.

[worldofcoins]

Wow, at this point, when your personal info is available on the dark web for sale, then it's really hard for you to live your normal life. I would be living in paranoia if such an incident happened to me.

Even after taking the advice of the lawyer to change the name, there's no guarantee that he will not be called for checks by police for every crime committed by the person who bought his ID.

[Learn Bitcoin]

Thank you for this Learn Bitcoin! So yes, this story is similar to OP, which describes an event which happened without using a CEx. Such examples should show everybody how thin is the line between having an identity and losing it afterwards. It may happen because people make accidents but also without their will... But using a CEx is, for sure, a way of offering your identity willingly to a third party so such unfortunate events can happen even more often.

The case showed us that not only their Identity but their biometrics can be stolen as well. It was a fingerprint in that case. We do not value our privacy and do not think twice before doing these things. The thing is, we can grab the SIM seller because they have a local store. But, it's not possible to do anything with the CEX because we don't even know from where it was stolen! Most of us use multiple CEX these days!

I have read another story of a Bangladeshi scammer who uses Mobile banking accounts to scam people online. When Police investigated the cases, they found that the mobile banking account was registered with an old woman identity who could not even write or read. This means, that her identity was stolen and those scammers are using her identity to scam people. The woman wasn't in much trouble because it's understandable that her identity was stolen. But what if the same thing happens to me? They will initially arrest me and it will take ages to prove that I am not the scammer and my identity was stolen.