Filipino scammers have created fake tokens representing Bank of America, BlackRock, and JP Morgan on the XRP Ledger (XRPL), impersonating U.S. Treasury accounts through fraudulent KYC processes.
Why is this important to discuss: The scam shows how easy it is to create fake tokens and spread misinformation. Activities like this paints a negative picture of all Filipinos, affecting those who are trying to contribute positively to the wider crypto ecosystem.
Key details:
- Zach Rynes, Chainlink community liaison, issued a warning about misinformation in the XRP community.
- The scam involves fake KYC accounts from the Philippines impersonating the U.S. Treasury.
- Fraudulent posts about the U.S. Treasury’s XRP wallet were shared widely, claiming interactions with major institutions like Bank of America and JPMorgan.
- On-chain analysis showed the wallet was activated by a non-U.S. account, based in the Philippines, the X accounts claimed.
Claims circulating in the community include:
- Bank of America did 100% of internal transfers on Ripple in 2021.
- XRP is a CBDC.
- Ripple is based in Hong Kong.
Accordingly: Influencers were criticized for spreading misinformation without verification.
“Latest example of the rampant misinformation problem in the $XRP community… This time we have fake KYC’d accounts from the Philippines pretending to be the US treasury and issuing fake Bank of America, JP Morgan, and BlackRock tokens on the XRPL. I’m being genuine when I ask, how do people actually fall for this stuff? There’s so many red flags when I see things like this on my timeline, have immediate skepticism and took me only a minute to find a confirmation by the KYC provider saying it’s fake.”
Zach Rynes, Community Liaison, Chainlink
How it worked:
- The fraudulent wallet address, rfHhX6hA54LBqA3j7r7EnCs6qyaRK2Lyfq, was activated by Kraken.
- The wallet was KYC-verified via Xumm, misleading many into believing it was legitimate.
What is KYC: Financial institutions use KYC (Know Your Customer) procedures to verify the identity of a customer before allowing them to open an account.
- In the crypto industry, KYC processes help curb illegal activities such as fraud, money laundering, and terrorist financing. (Read more: KYC for Bitcoin in the Philippines)
Between the lines: While blockchain provides transparency, it doesn’t prevent bad actors from exploiting loopholes. KYC processes, even when implemented, can be manipulated if not properly scrutinized.
- Blockchain platforms and social media users must collaboratively verify and expose fraudulent activity, emphasizing caution and skepticism as scams grow increasingly sophisticated.
Worth reading: Last year, the official YouTube accounts of well-known Filipino personalities were hacked to promote XRP. These included the band Ben&Ben, the P-pop boy band SB19, and the singer Rico Blanco.
This article is published on BitPinas: Nakakahiya! Filipino Scammers Impersonate U.S. Treasury, Issue Fake Bank of America & BlackRock Tokens on XRP Ledger
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