How to Protect Yourself from Crypto Drainers and Understand the Role of AML in Combating Fraud?
The cryptocurrency market is growing rapidly, and with it, the risks for regular users are increasing. Over the past years, more than $60 billion have flowed through crypto wallets linked to the darknet, extortion, and fraud. These funds passed through exchanges, mixers, and the wallets of unsuspecting users. To avoid becoming a link in the money laundering chain, it’s crucial to understand how scammers operate and how AML can help protect your assets.
What is AML and Why Is It Needed?
AML (Anti-Money Laundering) refers to measures aimed at detecting and preventing the laundering of criminally obtained funds. In the crypto space, AML plays a special role since the anonymity and decentralization of blockchain attract malicious actors.
The AML process includes analyzing the origin and pathways of funds. The risk score of an address shows how closely it is linked to suspicious activity. A high risk (70-100 points) signals that you should not proceed with the transaction. AML checks protect you from fund blockages and potential legal issues.
Who Are Drainers and How Do They Operate?
Drainers are tools or schemes used by scammers to steal cryptocurrency from victims. They often operate via malicious smart contracts, phishing websites, and social engineering.
Popular Attack Methods:
- Phishing websites — copies of well-known services where victims enter their private keys.
- Fraudulent smart contracts — users interact with them, granting access to their tokens.
- Airdrops and “gifts” — lure victims with free tokens requiring a “signature” that grants full access to funds.
How Do Scammers Launder Stolen Crypto?
Criminals try to legitimize stolen funds through:
- Mixers and anonymous wallets (e.g., Tornado Cash).
- Transit addresses and decentralized exchanges (DEX).
- Conducting NFT deals, which they buy from themselves.
- Crypto exchanges without KYC checks.
How to Protect Yourself from Drainers?
- Do not click on suspicious links or enter private keys anywhere except your wallet.
- Verify smart contracts before interacting, especially with lesser-known projects.
- Use cold wallets for storing large sums.
- Check addresses using AML services (e.g., GetBlock, AMLBot).
- Regularly change addresses for receiving funds.
What to Do If You Become a Victim?
1. Save all correspondence and transaction details.
2. Analyze the blockchain: track the path of your funds.
3. Contact the exchange support if funds reached them.
4. File a report with law enforcement with a detailed description.
AML and DEX: Is There Protection?
Decentralized exchanges don’t require KYC and aren’t controlled by centralized entities, making AML control more difficult. However, international bodies like FATF demand AML implementation even on DEX. Due to their decentralized nature, enforcing such requirements remains controversial. DEXs don’t allow direct fiat withdrawals, so criminals use them to obscure transaction trails.
How to Minimize the Risk of Dealing with “Dirty” Crypto?
- Verify counterparties and their addresses before any transaction.
- Use AML services to analyze incoming transactions.
- Receive funds on new addresses, analyze them, and only then move them further.
- Don’t keep large sums on a single address.
AlwaysMoney.org recommends staying cautious and checking the history of funds. Remember, the responsibility for your asset security starts with you.
AlwaysMoney.org — your partner for safe and honest cryptocurrency exchange.
