A new report from blockchain security firm CertiK revealed that a large group of professional “Know Your Customer (KYC)” actors are being employed by dubious blockchain developers and scammers to defraud crypto investors.
KYC verification systems are used by crypto projects in the Web3 space to establish customer identity and qualify the source of funds. The process helps the platforms protect themselves from fraud, money laundering, and terrorist financing.
Crypto Fraudsters Hire KYC Actors for Scams
According to CertiK’s report, the actors are hired to complete the KYC process on behalf of fraudulent project owners who want to gain the crypto community’s trust before executing an insider hack or exit scam, popularly known as rug pull.
During its investigation, the security firm identified a KYC actor who agreed to share detailed information about the industry. The actor claimed he had been in the business for three years and provided links to marketplaces where he got his gigs.
The marketplaces are mostly hosted on Telegram, Discord, some low-requirement phone apps, and ads on gig websites. Upon agreement, both parties will use an escrow service for the payment.
How Much Do KYC Actors Earn?
Interestingly, the actors earn small amounts for each role. Depending on the gig requirements, some make as low as $8. The interviewee disclosed that he earned between $20-$30 per deal.
“This sad situation is unfortunately not surprising as we know…
