This week we have one of our not-so-Secret Crime Fighter episodes. We recently met the folks at Cryptocurrency Compliance Cooperative who have been doing some work on cryptocurrency typologies. They recently released information about 2 crypto typologies that are particularly relevant during times of crisis, such as now with the war in Ukraine. We also think these typologies are relevant for companies dealing with fiat currencies. Read on for more information.
During times of crisis, it is now common for donations to be accepted in cryptocurrencies, and indeed Ukraine are accepting such donations. But, as with any crisis, criminals are working hard to take advantage of the opportunities that arise.
Fraudulent donation sites have been popping up, with the donations often used to fund criminal organizations. Those in the cash-to-cryptocurrency industry might want to inquire about whether their customers are making donations, and if so, should ensure that they are donating through validated channels, to legitimate wallet addresses.
Another scam that often increases in frequency at times of crisis is the romance scam. Scammers take advantage of the publicity around the event to convince victims that their situation is legitimate. For example, when Covid began, scammers posing as family members or significant others convinced victims that they needed a large amount of money before the lockdown occurred, so they could travel to the victim, or for medical supplies.
As news networks talk about the thousands forced to flee their homes in Ukraine, be aware that scammers will almost certainly try to convince victims that they too are being forced to flee and need funding to do so. There has already been an increase in GoFundMe and Reddit posts about individuals needing cryptocurrency for car purchases in Ukraine.
Most romance scams start with the scammer requesting small amounts of money, and the transactions increasing in volume and amount over time. However, during a crisis, the initial transaction volume and/or amounts are quite large straight away. In addition, the wallets associated with romance scams are usually affiliated with overseas exchanges.
Thanks for reading our latest Secret Crime Fighters newsletter. If you have an interesting typology that you’d like to share, we’d love to hear about it! Please email us at [email protected].
How Grasshopper Bank Saved 50+ Hours per Fintech Partner with Cable’s Automated Compliance Testing.png)
Why Fintechs Need 24/7 Automated Compliance Testing.png)
Expanding Compliance Testing: New Modules for Reg E, Reg B, and Reg ZThis week we have one of our not-so-Secret Crime Fighter episodes. We recently met the folks at Cryptocurrency Compliance Cooperative who have been doing some work on cryptocurrency typologies. They recently released information about 2 crypto typologies that are particularly relevant during times of crisis, such as now with the war in Ukraine. We also think these typologies are relevant for companies dealing with fiat currencies. Read on for more information.
During times of crisis, it is now common for donations to be accepted in cryptocurrencies, and indeed Ukraine are accepting such donations. But, as with any crisis, criminals are working hard to take advantage of the opportunities that arise.
Fraudulent donation sites have been popping up, with the donations often used to fund criminal organizations. Those in the cash-to-cryptocurrency industry might want to inquire about whether their customers are making donations, and if so, should ensure that they are donating through validated channels, to legitimate wallet addresses.
Another scam that often increases in frequency at times of crisis is the romance scam. Scammers take advantage of the publicity around the event to convince victims that their situation is legitimate. For example, when Covid began, scammers posing as family members or significant others convinced victims that they needed a large amount of money before the lockdown occurred, so they could travel to the victim, or for medical supplies.
As news networks talk about the thousands forced to flee their homes in Ukraine, be aware that scammers will almost certainly try to convince victims that they too are being forced to flee and need funding to do so. There has already been an increase in GoFundMe and Reddit posts about individuals needing cryptocurrency for car purchases in Ukraine.
Most romance scams start with the scammer requesting small amounts of money, and the transactions increasing in volume and amount over time. However, during a crisis, the initial transaction volume and/or amounts are quite large straight away. In addition, the wallets associated with romance scams are usually affiliated with overseas exchanges.
Thanks for reading our latest Secret Crime Fighters newsletter. If you have an interesting typology that you’d like to share, we’d love to hear about it! Please email us at [email protected].
