Fraud Prevention, KYC and AML Compliance for P2P and Cryptoasset Exchange Operations Training Course

P2P Exchange Operations and the Fraud Risk Landscape

• Escrow-based order lifecycle and asset release.
• Where exposure sits: off-platform fiat, on-platform crypto.
• Fraud loss, chargeback and bank claim consequences.

Exercise 1, Map the Exposure: teams trace one buy order and one sell order from placement to release, marking every point where off-platform payment breaks the link between identity and funds.

Regulatory Framework and Supervisory Expectations

• FATF Recommendations, VASP obligations and the travel rule.
• Cryptoasset supervisory authority and exchange house licensing.
• Jurisdictional risk, grey-list monitoring and sanctions exposure.

Fraud Typologies in P2P Trading

• Payment channel deviation and mismatched payer accounts.
• Triangulation, third-party payers and reused payment proof.
• Partial, altered and visually similar amounts.

Case study, Five Recurring Patterns: participants classify real anonymised dispute records against the five typologies and identify the control that failed in each.

False Confirmations, Forged Receipts and Account Takeover

• Orders marked paid without an actual transfer.
• Edited screenshots and falsified bank receipts.
• Cross-phishing in order chats and credential theft.
• Hijacked accounts reused to scam other users.

Workshop, Phishing in the Order Chat: teams compare a genuine support message with a fraudulent one, then draft the takedown and revalidation path for the reported account.

KYC for Individuals: Level 1 and Level 2

• Level 1 data capture and identity document review.
• Level 2 revalidation, video-selfie liveness and list screening.
• Matching the verified identity to the payment instrument.

Lab, Onboarding Under Pressure: participants run a Level 1 and a Level 2 review on sample files and record the discrepancies that trigger revalidation.

KYC for Legal Entities and Beneficial Ownership

• Corporate documents, representation powers and signatories.
• Beneficial ownership chains and control indicators.
• Legal person risk factors and periodic review.

Identity Fraud and Document Forensics

• Forged, borrowed and synthetic identities.
• Liveness bypass, deepfake attempts and injection attacks.
• Revalidation triggers after a dispute or compromise claim.

Lab, Document Forensics: participants inspect tampered documents and screen captures for inconsistencies in font, layout, metadata and account numbers.

AML Screening, Sanctions and PEP

• List matching, tolerance levels and false positives.
• PEP identification, adverse media and source of wealth.
• Enhanced due diligence and escalation thresholds.

Customer Risk Assessment and the Risk-Based Approach

• Customer, product, channel, geography and behavioural factors.
• Risk rating, review triggers and treatment decisions.
• Scaling due diligence to the actual risk.

Transaction Monitoring and Blockchain Analytics

• Withdrawal approval: account age, KYC status and history.
• Wallet attribution, high-risk counterparties and fund tracing.
• Chargeback-prone gateways and payment method risk.

Case study, The Large Withdrawal: participants review a withdrawal request with a mixed funding history, decide whether to approve or escalate, and justify the decision against the monitoring criteria.

Evidence Standards for Payment Proof

• Acceptable evidence: statements and uninterrupted recordings.
• Authenticity checks on documents, captures and metadata.
• Recording what was verified and what was not.

Lab, Evidence or Artifact: teams sort a pack of submissions into acceptable evidence, insufficient evidence and probable fabrication, and state what to request instead.

Disputed Evidence and Interbank Delays

• Resolving cases where both parties submit valid evidence.
• Waiting periods for interbank processing and preventive holds.
• Documented decision criteria for time-expired orders.

Workshop, Both Sides Are Right: teams resolve a dispute in which buyer and seller each hold apparently genuine proof, and defend the outcome.

Action and Sanctions Playbook

• Freezing collateral, restricting accounts and suspension.
• Partial payment deadlines and return to the originating account.
• Refunds to incorrect banks: fees and resolution timeframes.
• Restricted balances and retention of new deposits.

Exercise, Write the Sanction: participants draft the action, notice and timeframe for three escalating cases and test them against the playbook criteria.

Case Management, Documentation and Escalation

• Case files, internal notes and evidence retention.
• Escalation matrix and department head review.
• Suspicious activity reporting and record keeping.

Capstone: End-to-End Fraud Case

• Order review, evidence assessment and identity revalidation.
• Escalation, sanctions decision and counterparty resolution.
• Justification memo and peer review.

Capstone, Full Case Run: each team handles a complete simulated case from the first suspicious message to the final decision, and presents a written justification for peer review.

Diagnostic and Advisory Session (Additional Component)

• Review of current practices and protocol gaps.
• Guidance on evidence standards and disputed cases.
• Guidance on actions and sanctions criteria.