Phase 2 — Digital and Emerging Schemes · 8 min read
13 · Cryptocurrency Receipts Diverted to Private Wallets
Crypto payments accepted on the business's behalf but routed to a wallet the partners cannot see.
01The private wallet
A self-custodied cryptocurrency wallet is controlled by whoever holds the keys, and the keys leave no paper trail. A fraudster accepts crypto on the business's behalf, routes it to a private wallet, and the transaction never appears in the company's records. The on-ramp and the off-ramp are where it is found.
- Customer agreements mentioning crypto payment options the partners never approved.
- Wallet addresses, seed phrases, or hardware wallets found in company materials.
- Exchange accounts in an owner's name receiving funds that belong to the business.
- Form 1099-DA from an exchange that does not match any known company account.
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10 · Payment Apps and Unauthorized Payment Links
Customer payment links pointing to a personal account on a consumer payment app.
11 · Leads and Customers Redirected Through Social Media
Business-generated leads and customers steered to a competing venture owned by the fraudster.
12 · AI-Assisted Documents and Impersonation
Invoices, signatures, and communications fabricated or altered with generative AI tools.
14 · Fictitious Customers Used to Hide Missing Inventory
Fake sales to nonexistent customers that explain away inventory that was actually stolen.