These are some of the things we do to prevent fraud:
Create awareness among Customers
We warn customers on social media and in our blogs to watch out for fraud attempts. On our website you can see a banner to warn customers for fraud. If something is too good to be true, it usually is.
Avoid links in our mailing
Whenever possible, we avoid including links in our mailing. Make sure you only open links you which you can open from the LiteBit app/website.
A trained fraud team analyzes patterns in order to identify fraud and prevent fraud in the future.
Money Laundering and Terrorist Financing (Prevention) Act (WWFT)
To prevent fraud, LiteBit follows the Money Laundering and Terrorist Financing (Prevention) Act (WWFT). From 2020 onwards, this law applies to all European cryptocurrency companies. That’s why all LiteBit user need to have their accounts verified.
What is the new Wwft legislation (AML5) and what does it mean for me?
The Wwft is an abbreviation for the Money Laundering and Terrorist Financing (Prevention) Act. The purpose of this Act is to combat money laundering and terrorist financing and to guarantee the integrity of the financial markets.
In accordance with the legal obligations, we must, therefore, ask you to go through this KYC (Know Your Customer) flow once you sign up. Unfortunately, you cannot avoid this process even if you contact us about this issue.
The flow consists of a few steps that you can go through in a few minutes. You can rest assured that your data will be treated with the utmost security and confidentiality. Once you've gone through the flow, you can use LiteBit again as usual.
What if I want to place large orders at LiteBit?
The Wwft legislation also mean that for trade volumes of EUR 25,000 per year and above additional verifications may be required to substantiate your source of income. The following documents can be requested as substantiation:
- Bank account statement
- Gift agreement
- Statement with dividends per share
- Statement of cryptocurrency trades
You also have possibility to contact Support when you have any doubts about a possible fraud situation. In case you are a victim of fraud: please contact firstname.lastname@example.org. This team is specialized to provide advice on how to prevent fraud in the future
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