1. Introduction
1.1. The Fraud Prevention Policy is crucial to ensure the security and integrity of our services and products involving virtual assets, which also includes risk management rules and procedures for fraud prevention:
1.2. The purpose of this Policy is to establish guidelines and procedures to prevent and mitigate fraud in our operations as a Virtual Asset Service Provider (VASP).
1.3. This policy applies to all employees, contractors, agents or other persons, working on behalf of Swapzy and covers all aspects of our services and operations.
1.4. For the purposes of this Policy, fraud means the act of dishonestly or unlawfully obtaining or attempting to obtain an advantage or financial gain through deceptive practices within the framework of our services and operations.
2. Risk Management Procedures
2.1. Swapzy implements robust customer due diligence procedures, including identity verification and source of funds verification for all customers in accordance with applicable laws and best practices.
2.2. Swapzy continuously monitor transactions for unusual or suspicious activities using advanced fraud detection tools.
2.3. All employees are required to report any suspicious activities to our designated AML Compliance Officer immediately.
3. Red Flags
3.1. Swapzy establishes a non-exhaustive list of red flags indicating the features of potential fraudulent activities and provide guidance on how to respond to these factors, described below in this Section.
3.2. Swapzy conducts Know Your Customer procedures (KYC) to duly and properly identify and verify its users’ identities in accordance with the applicable laws and best practices. Users are required to promptly update their personal information when changes occur.
3.3. Swapzy investigates any accounts, transactions and/or operations, engaged in suspicious or manipulative trading activities.
3.4. Swapzy terminates the provision of its services, transactions and other operations, if its user is involved in any type of financial manipulations, wash trading, or spoofing.
3.5. Swapzy terminates the provision of its services, transactions and other operations, if its user provides false or misleading identity information until the identity verification of such a user is completed correctly.
3.6. Swapzy encourages its users to report all phishing attempts to our support team to the following e-mail address: aml@swapzy.io for our immediate investigation.
3.7. Swapzy encourages its users to enable two-factor authentication (2FA) for their account security.
3.8. Swapzy implements strong cybersecurity measures to protect customer data and assets, including encryption, regular security assessments and so on.
3.9. Users who provide false or misleading identity information may have their accounts suspended until identity verification is completed correctly.
3.10. Multiple accounts under the same identity information, as well as frequent and large deposits from unverified or high-risk sources will be flagged for review.
3.11. Cryptocurrency deposits with unknown origins or unclear transaction histories will be investigated.
4. Reporting Fraud
4.1. Swapzy encourages users to report any suspicious activity, fraud and/or phishing attempts immediately to our support team to the following e-mail address: aml@swapzy.io for our immediate investigation.
4.2. The User should comply with the following clear instructions (steps) for reporting any suspicious activity, fraud and/or phishing attempts:
1) In the subject line of the email, use a clear and descriptive phrase, such as "Fraud Report" or "Phishing Attempt."
2) In the email body, the User should provide the following information:
a) His/her full name and username on the platform (if applicable).
b) A detailed description of the fraudulent or phishing activity the User encountered, including any relevant dates, times, and affected accounts.
c) Any and all evidences and/or screenshots related to the incident (if available).
3) The User should not include any sensitive personal or account information in the email, such as your password or account credentials. Swapzy will never ask for such information via email.
4) After composing the email, the User should click the "Send" button to submit your report.
5) The User will receive an email confirmation acknowledging receipt of his/her report. Our team will review the information provided and, if necessary, initiate an investigation or ask for more details.
4.3. Swapzy takes reports of fraud and phishing attempts seriously and are committed to safeguarding our users from such activities. Such reports will help us maintain a secure and trustworthy trading environment.
4.4. In case of any further questions or concerns, the User should reach out to our support team for assistance to the following e-mail address: aml@swapzy.io.
5. Regulatory Compliance
5.1. Swapzy ensures that its services, products and activities comply with all applicable local and international regulations.
5.2. Swapzy regularly reviews and updates its compliance procedures to stay in line with evolving legal requirements.
6. Security Measures
6.1. Swapzy maintains a robust security infrastructure to safeguard user data and assets.
6.2. All users should keep their sensitive information secure and report any security concerns promptly to our support team.
7. Dispute Resolution
7.1. Swapzy has its clear process for handling fraud-related disputes.
7.2. Swapzy conducts thorough investigations into reported fraud-related issues and communicates with affected users.
7.3. Swapzy establishes a clear plan for promptly communicating with users who are affected by fraudulent activities, including notifying them of the situation and any necessary actions they need to take.
7.4. Swapzy establishes clear steps to resolve fraud-related disputes in a fair and efficient manner.
8. Consequences of fraudulent activities
8.1. Swapzy terminates the provision of its services and products in cases of severe or repeated fraudulent activities.
8.2. Swapzy also pursues legal actions against individuals engaged in criminal or fraudulent acts.
9. Staff Training
9.1. Swapzy regularly educates all employees on recognizing and preventing fraud, and ensures they are up to date with the latest fraud trends and prevention techniques.
9.2. Employees who suspect or detect fraudulent activities must report them immediately to the AML Compliance Officer.
10. Regular Updates
10.1. Swapzy reviews and updates this Fraud Prevention Policy periodically to adapt to changing fraud risks and regulatory requirements.
10.2. The provisions and procedures, specified in the Swapzy’s AML Compliance Policy will apply to the fraud prevention procedures mutatis mutandis.
©2023. All rights reserved
https://swapzy.io/ is operated by UAB "Destigama" (Reg. No. 306360741), Žalgirio g. 88-101, Vilnius, Lithuania. UAB "Destigama" registered in Lithuania as virtual currency exchange operator and custodian virtual currency wallet operator.
