Fighting KYC Farms with Advanced Technology: Synaps’ New IP Tracking Feature

Among the most persistent challenges are KYC farms—individuals or groups who manipulate Know Your Customer (KYC) processes by reselling verified identities. This practice not only undermines trust but also menace the integrity of crypto projects, opening the door to fraudulent activities.

At Synaps, we’re excited to announce a new feature designed to tackle this specific issue: IP Tracking for KYC Farms.

The Problem: KYC Farms

KYC farms exploit verification systems by creating multiple accounts or reselling identities to third parties. These actions inflate participant numbers artificially and introduce risk into private sales, token distributions, and other crypto fundraising events.

The rise of KYC farms directly contradicts the principles of transparency and trust that drive blockchain technology. Crypto projects relying on KYC processes risk damage to their reputation, potential regulatory scrutiny, and financial losses.

The Solution: Synaps’ IP Tracking

Our new IP tracking system is an intelligent feature designed to flag suspicious activities, particularly when the same IP address is used for multiple verifications. While IP addresses alone aren’t definitive proof of fraud, they serve as a critical red flag that can prompt further investigation.

Here’s how the feature works:

• Flagging Mechanism: The system identifies and flags multiple KYC attempts originating from the same IP address.

• Customizable Use: This feature is currently being implemented internally and is available selectively to clients based on specific agreements.

How It Helps Crypto Projects

For projects relying on Synaps for KYC/KYB services, this feature enhances security by:

1. Reducing Fraud: By detecting suspicious patterns, the system minimizes the risk of bad actors infiltrating your ecosystem.

2. Boosting Trust: A robust verification system reassures investors, users, and regulators that your project prioritizes security and integrity.

3. Preserving Resources: Avoid wasting resources on fraudulent users, ensuring that efforts are directed toward real participants.

For Exclusive Use

Currently, the IP Tracking for KYC Farms feature is available to select clients under specific agreements. If you're interested in leveraging this tool to protect your project, we invite you to get in touch with us.

Want to protect your project from KYC farms? Contact Synaps today to discuss how our tools can support your goals. Together, let’s create a safer, more transparent crypto space.