Identity fraud attempts doubled as bitcoin prices skyrocket

 Identity fraud attempts doubled as bitcoin prices skyrocket

An Onfido study found that identity fraud attempts doubled in February 2021, coinciding with a fivefold year-over-year increase in bitcoin prices.

Cryptocurrency markets have become a constant target for scammers

The doubling of identity fraud attempts follows an ongoing trend of fraudsters taking advantage of the growth in telecommuting and relying on digital services: a recent report by Onfido Identity Fraud shows a 41% increase over the previous year.

With the crypto market turning into a constant hotbed of identity fraud, Onfido's results demonstrate the importance of vigilant identity verification solutions that detect and prevent attacks and scale with demand.

Many useful solutions of this kind use a combination of artificial intelligence and identity experts to ensure timely access to legitimate clients who want to invest and trade securely in the crypto market.

The pandemic has led to a significant increase in unsophisticated identity fraud as newcomers seek to take advantage of unsuspecting victims using digital services from home, said Dimitri Dorgan, Senior Records Officer, Onfido.

The digital cryptocurrency market is a natural target. With the rise in bitcoin prices, some investors become millionaires overnight, making the cryptocurrency more and more attractive to aspiring scammers.

It is imperative that cryptocurrency platforms have strong customer identification and authentication methods that allow legitimate users to trade freely without fear of being victimized by attackers or allowing fraudsters to impersonate real users.

Further research by CipherTrace found that more than half of the world's cryptocurrency exchanges have weak or imperfect customer identification and Know Your Customer (KYC) processes.

As cryptocurrency markets continue to gain popularity among retail investors, reliable KYC and anti-money laundering processes will become increasingly important for trading and governance platforms to effectively protect their users.

 Identity fraud attempts doubled as bitcoin prices skyrocket

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