Binance Australia is strengthening its onboarding process for new users as part of a campaign to protect users flagged as most vulnerable to financial cryptocurrency.
The new measures were mentioned in Binance Australia’s June quarter economic, social and governance (ESG) report on August 29, which noted that the exchange was working on a “strict user-centric onboarding experience ” intended for groups with a higher occurrence. financial crime.
Speaking to Cointelegraph, Leigh Travers, CEO of Binance Aus, and Zachary Lu of the exchange’s Financial Crime, Risk and Compliance unit, noted that the company is actively working on ways to protect “vulnerable users” – this which begins with the integration process.
“From a financial management perspective as a whole, we really look at it end-to-end and also from the perspective of the whole circle of life,” Lu said.
“We look at three main areas: onboarding, mid-life and end-of-life [the point of time in which someone is scammed].”
Lu pointed out that the general type of people Binance has flagged as vulnerable users are the elderly, people living in remote areas, or people with disabilities. These findings are the result of collaboration with various government and research agencies focused on financial crime, he added.
The duo pointed out that the company pays particular attention to investment scams, in which criminals promise outsized returns on investments to trick people into sending them money.
This type of scam has cost Australians millions of crypto dollars, with a recent report from Scamwatch estimating that $25 million was lost in the first half of 2021 due to bogus investment plans.
“There are 500 different scams out there, but investment scams are always on top. So to be honest, it’s not exclusive to crypto scams, but investment scams have ranked number one for a very long time. , a very long time,” Lu noted.
To determine the extent of a new user’s crypto knowledge and to determine if they were tricked by a bad actor into signing up under false pretences, the company recently rolled out a Know Your Customer quiz ( KYC) which allows him to report any potentially suspicious activity.
“So in terms of the data there, it has only recently been implemented. So we don’t have some sort of analysis of how this is going to end. But this group of users was several times more likely to fall victim to these types of scams. »
To complete his point, Travers suggested that a high number of “vulnerable” users typically fall victim to scams within the “first seven-day window” of onboarding.
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Starting September 1, Binance Aus will incorporate stricter identification requirements as part of the user onboarding process. So the company will ask new users to provide a photo of their driver’s license and number at the time of registration, instead of allowing it to be submitted at a later date.
This will be introduced to allow Binance to quickly verify the legitimacy of identity documents as part of the onboarding process, identify a vulnerable user, and also help flag if someone might be registering under a coin. stolen identity.