Cryptocurrency and Credit Card Fraud: Q&A with n.exchange
n.exchange is a cryptocurrency exchange specializing in fiat entry and exit ramps to make crypto investing user-friendly.
Their current campaign to tackle credit card fraud in cryptocurrencies highlights a significant increase in fraudulent purchase attempts by cybercriminals using stolen card information, most of which have been perpetrated in countries around the world. western hemisphere.
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Invezz spoke with Gustavo De La Torre, Director of Business Development at n.exchange to better understand the recent discoveries.
You report that Canada was one of the top three places for crypto purchasing credit card fraud amid a spike in fraud activity between 2020 and 2021. What do you think are the reasons?
Cryptocurrency is gaining more and more interest in Canada, so naturally this opens up a new avenue for crooks to exploit. In addition to the growing interest, there is a lack of knowledge about cryptocurrency, which allows crooks to defraud individuals accustomed to fiat money alone. Statistically, Canada ranks among the highest targets for fraud attempts in general, with Statista discovery in 2018, that Canada was the third country in terms of consumers who reported being the target of fraud. Another interesting statistic from Simple rate named in its January 2021 report showed that Canadians reported a 71% increase in “the number of accounts reporting at least one case of credit card fraud.”
Few of the platforms involved in crypto have made the fight against cryptocurrency credit card fraud a primary focus like you, which is commendable. What motivated you to focus on this?
One of the main goals of n.exchange is to connect new users to crypto. Being aware of this unexplored world that many new users may find themselves in, there is a sense of duty and responsibility to inform them of possible scenarios they may encounter with scammers / fraudsters. And it is essential for us that they feel comfortable and secure using our platforms and the platforms of our partners, because we also believe that the future of cryptocurrency is based on experience. positive and secure user.
How can the average user protect themselves from crypto credit card fraud?
The obvious answer is to say that we recommend that you be careful with credit card information everywhere and only use reputable and regulated services, which ensures that your private information will not be sold / shared. But above all, educate yourself.
For someone new to the game, it can be quite easy to fall for phishing scams that appear to be legitimate crypto exchange trades. Familiarizing yourself with the industry is the priority. Learn about reliable and secure trading; ask friends and family who have invested or bought crypto. Learn to recognize the signs right away. If something doesn’t sound familiar to you, don’t explore it immediately.
n.exchange is currently seeking financial regulatory documents from the SEC. Are you optimistic about this prospect and future interaction with the watchdog in general??
Definitely, we are very optimistic about our journey and the upcoming candidacy with the FCA. One of our priorities at n.exchange is transparency, which is supposed to be the basis of blockchain technology and the origins of the crypto world. Because we want to be transparent, we look forward to our relationship with these oversight agencies. We understand how valuable they are to consumers and the legitimization of crypto.
What do you think the future of crypto regulation looks like?
There is a high probability that KYC will become a requirement for crypto transactions in the future on any platform. Fortunately, blockchain technology is built on the principle of systemic transparency, so basic information about customer transactions should be easy to obtain from an exchange, assuming that no illicit activity is actively perpetrated. from them.
Beyond KYC, it’s hard to see where it can go, especially since digital assets are hard to box and define very clearly. In the United States, we’ve seen Congress tackle it with the latest infrastructure bill, which has left a lot of people concerned with the bill’s characterization of who is obligated to report to federal agencies what crypto holders own, for example. In the future, as government officials gain a better understanding of crypto and the markets, they will eventually come up with regulations that will be reasonable for everyone.
What are the advantages and disadvantages of stricter regulation of the crypto, DeFi and NFT markets?
I would break it down as follows. There are two clear positives:
a) Show that crypto can easily be adopted by the masses in a secure way.
b) One more step for bitcoin to become a globally adopted currency.
The two obvious negative points:
a) Brings an obvious element of centralization to what was supposed to be a truly decentralized financial system, which goes against the nature of crypto as it was originally intended.
b) Challenge the P2P concept of cryptocurrency, which users might not want in the end.
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