As Auditmos team takes pride in spreading the news about security in the blockchain ecosystem and believes that knowledge is one of the crucial assets that lead to project’s security, we’ve recently started to take interest in the KYC method. This method is becoming more and more popular inside the crypto community because of the recently increased number of rug pulls and scams amongst crypto developers in the last year.
Rugpull is a relatively new scam type that has become more popular in the cryptocurrency industry in the last year. How it works is that the developers of a cryptocurrency project abandon it unexpectedly, taking investors’ funds with them.
Thankfully, some cryptocurrency businesses have already taken innovative steps in order to protect their users and investors. KYC (which stands for Know Your Customer) is actually one of the best methods used for confirming the security and authenticity of a crypto business. It serves to increase the security level of the given blockchain project by determining and confirming the identities of the project’s team members. We strongly believe that KYC verification will be one of the crucial elements of future DeFi security and will have a huge impact on building trust in the community.
When a project is positively verified, or as you can say KYC-d, it is granted a KYC verification certificate that comes with the benefit of improving its credibility and building the trust in its future customers and/or investors. Additionally, the community can also benefit from that because the knowledge about a KYC certificate stands for the team’s transparency and credibility. What it means is that the identities of people standing behind a project have been confirmed and, moreover, every sign of fraud has been detected and passed further to appropriate law enforcement agencies on the basis of respective regulations.
Our mission at Auditmos is to answer the security needs of today’s crypto community, hence, we’ve decided to add the KYC service into our scope. From now on, everyone interested in taking care of the safety of their blockchain projects can take advantage not only from the smart contract audit, but also from the KYC verification.
Auditmos joined forces with a well-experienced crypto investor and former public service officer specializing in the detective field, in order to introduce an innovative verification tool. This new high-quality method has been developed following a high standard of both technical and manual overview. It will be based on the techniques inspired by the 10-year long professional experience in identity verification. Our specialist is equipped with knowledge and skills that allow him to perform a vast range of tasks that lead him to confirm or challenge the authenticity of gathered evidence. During the KYC process we will be able to detect any attempt of fraud by e.g. examining the authenticity of provided documents from all around the world, and reading the body language of the interlocutors during a video-call interview.
At the same time, we want to make sure that the process is fast, easy, and convenient for our clients. Hence, the KYC verification would be performed in a short period of time (about 48 hours per project) and by following a previously set up, proprietary plan. Then, the gathered data would be safely stored according to the RODO procedures. In exchange, after being positively verified, the KYC-d team would receive an Auditmos KYC verification certificate.
It’s also worth pointing out that the non-doxxed teams’ which prefer to remain anonymous to their community can rest assured that their data will be stored safely and won’t be publicly disclosed.
Looking at the recent exponential growth of DeFi, it’s important to remember the risks that come with it. We believe that many investors could avoid unnecessary risk of being subject to rugpulls if they used the currently available tools and verification methods. By combining more than one security measure, such as KYC and smart contract audit, it’s possible for the projects and for the investors to substantially reduce the risks and support the growth of secure DeFi.
We welcome all of you interested in the new KYC tool to contact us. Let’s start a conversation and improve the security in crypto!
data taken from: https://blog.chainalysis.com/reports/2021-crypto-scam-revenues/
