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

[Cantsay]

I already have my personal information tied to two exchanges already, back when I newly got into Bitcoin before getting exposed to lectures on privacy and what being careless with your personal information could cause, I had already registered an account in two exchanges and had to complete my KYC so that I could use the p2p service. Although they stated that if I wanted to get my info deleted from their system I should make a request and follow some directives and that way my details would be wiped out from their database.

The exchanges in question are Binance and kucoin. Now my question is; Is they a way to prove that my details has truly been wiped out from their database after completing all the procedures?

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[coinerer]

cex exchange provides very good services in many cases like p2p facilities so many people are more interested in using cex.  But one problem in cex is that kyc is mandatory to trade or withdraw high amount. But in this case, there is a fear of kyc information being stolen.  But I don't think kyc on reputable exchanges like Binance, kucoin etc will have any data theft. But be careful while doing kyc on any new or non popular cex and avoid using smaller cex exchanges. Because in small cex there is a lot of risk of KYC documents being stolen as well as deposited funds

[GazetaBitcoin]

I think it's not so much how willing you are to use a cex but rather how strong your password is whenever you sign up for services that use KYC, and obviously how serious the service you're using is.
[...] So the first source of security is yourself.

I don't know how much your password can help you if hackers break the database of the exchange. Remember that the forum also got hacked in the past and hackers obtained many passwords of users' accounts...
Indeed, a strong password is useful but it's not all you need for not having your identity stolen. For not having your identity stolen no third party should have your data.

from this case it is really very dangerous to do KYC on an exchange, anything can happen beyond our control, very terrible,
but how can we trade if we don't do kyc on the exchange, even though that's the main part of being able to trade and withdraw funds.

As I wrote above, you should use only decentralized exchanges, crypto ATMs and peer-to-peer transfers. You can always search on CoinATMRadar for a cash-in / cash-out crypto ATM in your area. These ATMs are (supposed to be) anonymous, although their fees are not small...

This is one hell of a nightmare, wouldn't be surprised if he quit his driving job  with all the humiliation he keeps getting But why didn't he use his lawyers to sue these convicts for identity theft and all trumour suffered because of  their actions..?(

If you carefully read OP you'll notice that the first thief was caught and convicted. Then another thief used the victim's identity... He was in an endless loophole...

Btw if I were him,would have gone with changing identity, the damage is to much

I doubt this would be a good idea... As bittraffic observed, such move would only draw even more suspicion on you...

The exchanges in question are Binance and kucoin. Now my question is; Is they a way to prove that my details has truly been wiped out from their database after completing all the procedures?

No, there is no way to know for sure that your data was actually deleted...

I don't think kyc on reputable exchanges like Binance, kucoin etc will have any data theft.

Have you read in OP that Coinbase sold clients' data to third parties? Isn't Coinbase also a reputable exchange? Besides, don't you know that Binance got hacked twice already? Only luck made that Binance clients did not have their personal information stolen as well and hackers were only interested in their deposits...

[mendace]

I don't know how much your password can help you if hackers break the database of the exchange. Remember that the forum also got hacked in the past and hackers obtained many passwords of users' accounts...
Indeed, a strong password is useful but it's not all you need for not having your identity stolen. For not having your identity stolen no third party should have your data.

Yes, even corrupting the database is a valid option for data leakage but we ourselves do not realize how much free data we are releasing, this information could come back to haunt us in the future, even simply thinking about a change of policy and therefore thought in our country.  For example, if we buy Bitcoin today or if we subscribe to propaganda sites, this information could become illegal and we would be persecuted.

[coinerer]

I don't think kyc on reputable exchanges like Binance, kucoin etc will have any data theft.

Have you read in OP that Coinbase sold clients' data to third parties? Isn't Coinbase also a reputable exchange? Besides, don't you know that Binance got hacked twice already? Only luck made that Binance clients did not have their personal information stolen as well and hackers were only interested in their deposits...

conbase is also a reputable exchange and wallet. I didn't use coinbase exchange much but used coinbase wallet for long time but it restricted my account even though my kyc is complete.  Although it was solved after a month but this one month I really struggled to solve it because I had a large amount of Ethereum there. So since then I have stopped using coinbase services. This is why I mention coinbase very rarely in different place

[GazetaBitcoin]

So since then I have stopped using coinbase services.

That was a smart move. I hope that you also stopped using centralized exchanges since then...

I didn't use coinbase exchange much but used coinbase wallet for long time but it restricted my account even though my kyc is complete.  Although it was solved after a month but this one month I really struggled to solve it because I had a large amount of Ethereum there.

This is another reason for which you should never used a centralized exchange: similar to banks, they can always seize your account (abusively or not). You are not the owner of your funds once you deposit the money at the exchange. This is because you are not in possession of your private keys. And the saying "not your keys, not your coins" is very valid and it was also stated in a Court decision, by a judge! As a coincidence, the trial involved again Coinbase's name. The exchange was called into a Court of Law by a client which was not allowed by the exchange to redeem his BTG coins after Bitcoin Gold fork occurred. Judge's final decision clearly states that not your keys, not your coins.

[jrrsparkles]

Losing our data to a criminal could possibly the worst scenario of doing KYC but this is about privacy and how our personal data is handled by the platform that we share with. Data is the gold of 21st century so we all should know how to keep our privacy as our highest priority and we should be cautious while sharing anything with other platforms and if the platform shares it with others for their promotions then the risk increases higher.

[coinerer]

So since then I have stopped using coinbase services.

That was a smart move. I hope that you also stopped using centralized exchanges since then...

I haven't quit using cex completely but use cex very sparingly. Because many times there is a need to use cex for many purposes, so even if you try to avoid it completely, it is not possible. 

I didn't use coinbase exchange much but used coinbase wallet for long time but it restricted my account even though my kyc is complete.  Although it was solved after a month but this one month I really struggled to solve it because I had a large amount of Ethereum there.

This is another reason for which you should never used a centralized exchange: similar to banks, they can always seize your account (abusively or not). You are not the owner of your funds once you deposit the money at the exchange. This is because you are not in possession of your private keys. And the saying "not your keys, not your coins" is very valid and it was also stated in a Court decision, by a judge! As a coincidence, the trial involved again Coinbase's name. The exchange was called into a Court of Law by a client which was not allowed by the exchange to redeem his BTG coins after Bitcoin Gold fork occurred. Judge's final decision clearly states that not your keys, not your coins.

Yes depositing a fund in cex means handing over your money to others cex basically works like a bank but because the bank is authorized by the government there is a central bank under which all other banks operate so there is a lot of security here but in cex high quality money  They are very dangerous to keep so we should minimize their use and avoid if possible

[DapanasFruit]

So this is how stolen personal information can be used against someone else for the main benefits of those behind the business of taking someone's else name and use it for criminal activities. I used to be thinking vague on this but things are now clear to me as to the danger of info thievery. Good thing that I don't have any hint of being a name in the online world...as I think this is one factor why the victim was chosen by these criminals. We really have to be careful and pray that the platforms we are trusting will not fall into the hands of the criminals otherwise we are all at risk. This is one big advantages of DEXs over CEXs. And we have to face the reality that hacking will continue to be more sophisticated into the future and it seems to me that nothing can stop them to be successful from time to time.

[CoinEraser]

Translations (in chronological order):

• Română: Ce se întâmplă când îți este furată identitatea – caz real || Evitați CEX-urile!, translation by GazetaBitcoin
• German: Phil Zimmermanns Gedanken zu PGP - Wir alle sollten sie lesen, translation by CoinEraser

Oh I think you made a little mistake and didn't link to the right post here. The translation of your good PGP post is out of place here. 

This should be the right link:

• German: Was passiert wenn die Identität gestohlen wird, wahre Geschichte | Vermeide CEX!, translation by AHOYBRAUSE

[Ultegra134]

It's a shame that an innocent man had to go through all this trouble and humiliation, completely out of nowhere. While I understand your point and agree that centralized exchanges should be avoided if possible, the exact same thing can happen to anyone who has submitted their documentation to a platform or service. My point is that it's unavoidable not to submit our personal details anywhere, especially online, and thus, the damage has already been done. Personally, an older email of mine had been found in many data leaks, and who knows what information a hacker may have acquired?

The truth is that there are a few examples of data breaches through CEXs, which contain confidential information that most websites don't, such as an ID or taxpayer identification number.

[GazetaBitcoin]

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.

What is that solution for using a CEX, which always requires KYC, without providing your personal data? A fake ID?

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.

This is right. It is a cautionary tale. Yet, on the same principle, no house was ever broken by a burglar until a burglar broke in for the first time. I guess we should take this story as a "better safe than sorry" advice.

Oh I think you made a little mistake and didn't link to the right post here. The translation of your good PGP post is out of place here. 

Yup, thank you for pointing this to me! I fixed it

Because many times there is a need to use cex for many purposes, so even if you try to avoid it completely, it is not possible.

I, for one, never used a CEx

While I understand your point and agree that centralized exchanges should be avoided if possible, the exact same thing can happen to anyone who has submitted their documentation to a platform or service.

This is correct.

My point is that it's unavoidable not to submit our personal details anywhere, especially online, and thus, the damage has already been done.

This is sad, but true. All we can do is to limit, as much as we can, exposing our private information...

[coinerer]

Because many times there is a need to use cex for many purposes, so even if you try to avoid it completely, it is not possible.

I, for one, never used a CEx

It's great if you can avoid using CEX.  But in my case I try hard enough to stay away from using cex but in some cases I have to use it like saving gas fee, using P2P service etc.  So I can't completely avoid using CEX. But I think if DEX provides p2P service then Cex usage will reduce to a lot more then now. This is because cryptocurrencies including Bitcoin are still illegal in many countries.  P2P usage is still a very important topic

[Ultegra134]

My point is that it's unavoidable not to submit our personal details anywhere, especially online, and thus, the damage has already been done.

This is sad, but true. All we can do is to limit, as much as we can, exposing our private information...

Unfortunately, it is indeed sad. While all this technology and the evolution of the internet have huge benefits, digitalization, as positive as it may sound, is bound to be abused by some for evil purposes. In my opinion, it's way too late to limit this situation, not to mention reverse it, since our digital footprint stays forever. Cryptocurrencies were supposed to avoid all this KYC frustration, but due to all these regulations, it's practically inevitable.

[Tabani Pierson]

I think, that identity theft can have serious consequences for individuals. It is worth noting that the story is not related to the use of centralized exchanges, but it is a cautionary tale for anyone who stores personal information online.

Hackers can gain access to personal information and use it to steal identities and commit crimes. Even centralized exchanges like Coinbase have been known to sell personal information, so it is essential to take steps to protect your information and be aware of the risks involved with online transactions.

[NotATether]

Don't use no-name exchanges obviously.

Do a background check on exchanges you do business with to see their founders, their leadership board, etc. of course, they will try to hide a lot of things from the public eye, but if you happen to find something about them that rings alarm bells, DO NOT USE THAT EXHANGE, let alone give your details to it.

[johnsaributua]

it's ridiculous and adorable. The data that must be personal is even used like that by irresponsible parties, criminals can occur anywhere and whenever including the theft of identity for financial or dangerous activities.
I am indeed an airdrop er hunter willing to join the event only to pay only 5 $ I often do, it makes me laugh, it's cheap. Even though the guise of verification, of course we do not know what personal data want to be made by the second party even to 3.
As you mentioned and there are some media that say in my country I have also been reported by people who are not known and they make a customer database by being sold to other parties, even I also often get WhatsApp and SMS from people who are not known , for promotional offers. It doesn't make sense if they randomized the number.

If the Exchanger is a means of play, buying and selling, and all transactions as a whole, there is no choice sir if they want it. They require KYC. If there are some who do not require. But the features are quite different.

What is quite powerful is indeed dex and very flexible without sensitive data vulnerability.

So far I am still doing and submitting my personal data for a certain application or excanger requirement. I am aware of the big risk.

[KiaKia]

I have seen fake crypto exchanges that are opened for collecting people's KYC information, it is better to pass KYC requirements on top exchanges if you must use a CEX.

I have heard a lot of rumors about people purchasing evil stuffs online through the dark web and they always use stolen identities to carry out the purchases, we need to be careful with who we share our information.

The question I have now about people that are not using Centralized exchanges, because of identity stealing issues is, how are you guys doing day trading?

The main reason why I have no choice but to keep trading daily on centralized exchanges is that they are best for trading.

[pergola]

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.

[tread93]

Wow that is tragic, this poor guy. I hope he can catch a new stream of luck. Gonna have to say a prayer for this fellow  🙏