Kriptomat Fraud Awareness Note
Kriptomat is committed to fair and transparent business practices. We strive to run the business within the framework of legal regulations and following best practices and personal integrity. We consider all crypto market players to be responsible to act prudently and to help shape a good industry practice that will support the further adoption and growth of the crypto industry which is in line with our vision and mission. When providing services we constantly weigh between fast service delivery and clients’ security.
To manage the risks and reduce fraud-related incidents, as well as to enable controlled fraud combat improvements, we established the Kriptomat Internal Fraud Prevention Program, within which we began to systematically implement various measures in order to further protect, and above all, make customers aware of various types of fraud.
But regardless of what we do, the actual safety depends on the awareness and due diligence of the client itself. We, therefore, urge our clients to read carefully the questions below, which explain what, why, and how we implement certain measures. In the event that you have been (or suspect that you were targeted as) a victim of fraud, we kindly ask you to fill out the form below.
Why do we ask for your documentation and why we may ask you to provide proof of your source of funds?
We understand that our questions may be perceived as a bit annoying or even intrusive, especially if we require further clarification or evidence, but we operate in a way that fully complies with regulatory requirements and act prudently so that we make our contribution in shaping good industry practice. But hey – you trust us with your money. Is it not great that you know we are regulatory compliant and that we honestly believe in ethical business? For more information regarding the due diligence measures please read our Terms of Service. On top of legislative requirements, we applied several additional security measures as we noticed the need to implement additional security checkpoints with the help of which we are trying to detect fraudulent activity. For more information please read about our Internal Fraud Prevention Program.
What is Kriptomat Internal Fraud Prevention Program?
In February 2020 we launched an Internal Fraud Prevention Program under the leadership of our Chief Operating & Integrity Officer. With the establishment of the Internal Fraud Prevention Program, we began to systematically collect data on identified cases of fraud. Based on the facts, we implemented additional safety measures and began to monitor their effectiveness. We were very pleased to see the reduction of the fraud cases, however as new cases of fraud are constantly appearing, it is essential that we keep a close eye on new fraud types and always look for new solutions in order to ensure the safety of our customers as much as possible. Therefore, we kindly ask you not to be upset with additional safety and security procedures as fighting against fraud will only be successful if we work together. Our internal risk assessment is fully compliant with the applicable regulation and enhanced with our experience and knowledge, also including information received from our clients regarding fraud cases. So we use the information we receive wisely and with a greater purpose.
Your cooperation and support are much appreciated. In case you have any questions or suggestions regarding fraud protection measures or raising awareness you are most welcome to contact us at [email protected].
Who is our Chief Operating & Integrity Officer?
He is completely committed to the ethical stance and safety of the company and our respected clients and is thus always looking for new means to be added to the internal fraud prevention program. Our compliance officer and board member Mr. Eduard Kotšetov are supporting him by implementing the measures in the compliance process and always checking if there are any suspicious signals that require additional attention. However they both agree – we are limited to certain technical measures we can apply, the rest is on the users and for this purpose, we are most active when it comes to raising awareness and implementing security “checkpoints”.
Does Kriptomat cooperate with brokers or investment advisors or similar?
We will also NEVER call you. If Brandon, John, Jessica, etc. are calling you from Kriptomat, it is surely a scam. Please read what to do in such a case under the question “What should you do if you suspect you have been frauded?”.
Are you not sure you can trust your advisor or broker?
Digital transactions are as real as if you have gone to the bank with a certain person and then give the money into the hands of that person. Do you know who he is and where he will take the money? If not – then don’t do it. You need to know at all times where your assets are and you need to be in control of them. If you do not understand what digital assets are or how transactions to digital wallets work – then do not let anyone do this instead of you. Learn until you will understand, but do not let third-parties manage your money. Always think about this practically. Remember the bank example. In the end, there is no such thing as getting rich in a few days, so please do not fall for such promises. It breaks our hearts when we hear about cases where people lost all their savings. But there is nothing we can do. Transactions to crypto wallets are final and irreversible. So please be careful and do not trust stories about overnight millionaires.
Should all brokers be related to the fraud?
In addition, we do not want anyone to feel offended by alerting our users regarding the brokers or investment advisors. However, we can only rely on the information given by our clients. At the end, it is the client’s decision who they wish to work with. However, the clients themselves and solely are responsible for their transactions. Kriptomat will never be responsible for any transactions made by the client. Please see the question “Who is responsible for transactions and possible damage?” for more information.
What will happen if we recognize you are working with brokers or investment advisors?
However, even if we provide our service and allow the transaction this cannot be in any way interpreted as our assurance regarding the cooperation with the broker. We take absolutely no responsibility for your cooperation with any brokers or investment advisors or any other third party. We solely grant our absolute one-sided right to decline our services in a case where we assess the circumstances could be interpreted in a way the suspicion of fraud is grounded. Even if we overlook that you cooperate with suspicious brokers we take no liability for that. You alone are responsible for your actions on our Platform.
Which are indicators of suspicious activity or fraud?
Did they offer to remotely connect to your computer and are guiding you on what to do? Did they ask about your bank account credentials, email credentials …? Did they even “warn” you that we might ask about cooperation with the brokers and instruct you to confirm that you are not? There are so many cases of suspicious activity of fraud that we can only list some of them. They do however have some common grounds. Promises of quick and high earnings are one of them, next to persistent contacting and calling. Generally, they are all incredibly friendly and nice, with a great sense of humor even. In some cases they are inducing a sense of insecurity through passive aggression – don’t you want to get rich? Don’t you want to be a millionaire? In general, the nice part ends up the moment you want your money back and you want to close the brokerage account. Or when they see you have no more money.
We noticed the following cases of fraud that you should especially pay attention to: Did the broker send you a smaller amount of money (eg. 150 EUR or something like that) to make sure the transaction is working. After that, it is “declared” the system works and you are required to deposit more money? They remotely connect to your computer and provide transactions themselves and you “only” need to confirm the transaction via email and SMS. The virtual assets are then immediately transferred to an external digital wallet address. If you check the address on https://www.blockchain.com/ you can see only a few transactions or that is the new wallet address. Once you wish to close the account and acquire your money back, they refuse and claim you need to pay a certain amount of money to “unlock” the account. Only then will you be able to get your funds or something similar. In such cases, please do not transfer any more money to them even though they might become rude and aggressive. You will not receive it back for sure.
If you recognized the situations described above you are most likely attacked by the fraudster. Please read “What should you do if you suspect to have been frauded” to decide on your next steps. Regardless of what you decide to do next, we strongly advise you not to give them any more money or digital assets, regardless of how persuasive they sound.
What should you do if you suspect you have been frauded?
We advise you to immediately report the incident to the competent law enforcement authorities as they have sufficient powers to proceed with the investigation and to impose certain legal measures if needed. We also suggest not to warn the suspected fraudsters about the police as they might simply disappear. Also do not warn them about your suspicions so that the police will be able to make contact with them. If the fraudsters will see you are suspicious they will most likely disappear.
When reporting the incident to the appropriate law enforcement authorities you must describe the incident and surrounding circumstances as fully and comprehensively as possible. And most importantly do not be embarrassed that you succumbed to a fraud. Fraudsters are highly skilled professionals that know how to inspire confidence and gain property in a distinctly cunning way. Only when the incidents are reported to the law enforcement authorities the formal procedures may be initiated and there is a chance that the responsible persons will be brought before justice. We actively cooperate with law enforcement agencies and assist in investigations to the best of our ability.
Who is responsible for transactions and possible damage?
FRAUD REPORT FORM
Please use the following report form for all fraud or scam-related inquiries. We will treat the information received in full confidence and, if so requested, respond to you as soon as possible.
If you have been a victim of fraud or you have been a victim of an attempted fraud kindly please fill out the form below.
We will use the provided data solely for internal investigation purposes. Such information gathering is most valuable to us as it helps us establish and implement additional security measures that we use to combat various types of fraud. We must recognize new methods of fraud to implement security measures promptly and to warn clients about new fraud types. We can only do that if you help us with information. Your cooperation will be gratefully appreciated by our compliance and fraud combat team.