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Bitcoin Exchange General

Fighting Fraud in the Bitcoin Industry

With Crypto-Fraud on the rise, Tech View OU and Yotam Namir and Robert Provorovas company directors taken a more proactive approach in designing the process flow of its exchange platform, CoinTandem.

System developers and digital entrepreneurs are continually required to think ahead and imagine their built system’s intended use-cases and its misuse or abuse cases. The duo of Yotam Namir and Robert Provorov of Tech View OU is leading the charge in the fight against crypto-fraud in the Bitcoin industry with the development and integration of fraud mitigation systems on their Bitcoin exchange platform, CoinTandem.

CoinTandem is a digital block chain service that is revolutionizing the digital currency exchange platform process. The platform uses propriety algorithms and combines advanced payment processing with state-of-the-art fraud prevention technology to offer a safe and secure platform for all.

The Problem

Compared to the fiat currency, digital currency offers a highly unique set of security challenges. The sheer volume of the market, the anonymity of transactions, and the fact that it is instantly transferable and that transfers cannot be reversed attract lots of fraudsters to the industry like bees to honey.

Fraud schemes prevalent in the industry include identity theft, wallet hijacking, exchange scams, fake ICOs, Bitcoin Ponzis, etc. Although not all of these fraud schemes fall under the exchange platform’s mitigating purview, exchange platforms are constantly revolving their audit risk procedures to capture as many risks as possible.

Like canaries in a coal mine, exchange platforms are the usual targets for bad actors looking to breach the bitcoin ecosystem. To protect customers, exchange platforms like CoinTandem have developed propriety systems and are continually updating such systems to protect against various risks.

The CoinTandem Response

CoinTandem has developed a fraud-prevention system that loops both human and machine learning efforts to stop fraud. The propriety systems effectively utilize machine learning as one piece of the puzzle to prioritize risky users to watch more closely and a strict user onboarding process that mitigates the risk of identity theft.

But it doesn’t end there.

Some of the other procedures that push the zero-tolerance on fraud agenda of CoinTandem include an enhanced KYC protocol that is activated at the close of an exchange. What happens is, before an exchange is completed, the client is required to re-confirm by electronic signature his submitted crypto wallet and send BTC to the requested address.

In card transactions, OTP technology is activated for every buy transaction to ensure that only the owners of cards or due representatives are making purchases with such cards. Also, prior to a credit card purchase attempt, and in addition to the T&C, a Pop-Up disclaimer with a short and clear message asks the client to confirm that a 3rd party does not instruct him and that he is the sole owner of the wallet he has submitted on our website. The essence is to prevent Ponzi related bitcoin scams.

Some of the security features of the CoinTandem Platform include:

  • 2 – Factor authentication.
  • Robust real-time user verification.
  • Advanced platform with propriety algorithms and technology-driven fraud prevention systems.
  • Full KYC procedure in place to mitigate identity theft.
  • Full encryption of transaction to mitigate hijacking.

CoinTandem, a Tech View OU company is regulated by the Financial Intelligence Unit (“FIU”) in Estonia and licensed to “Providing a virtual currency service”(license number: FVT000205)
https://lp.cointandem.com/