A Reddit user's proposed solution secures transactions without KYC to avoid MitM frauds in P2P bitcoin exchanges.

ShadowOfHarbringer, a Reddit user, proposed a “Zero-KYC Assurance Mechanism for Fiduciary Money Transfer” (ZKAM-FMT).

The concept intends to avoid MitM financial frauds in P2P bitcoin marketplaces.

ZKAM-FMT secures transactions without KYC, which privacy-conscious consumers find cumbersome and intrusive.

A popular MitM scam involves a bad actor intercepting a transaction between two honest parties and misleading a buyer into sending cash to a crypto seller account.

Unknowingly, the crypto seller delivers money to the bad actor, leaving the customer without their purchase and the seller at risk of legal action.

ZKAM-FMT proposes an integrated browser in P2P market apps to verify transaction amount, transfer title, and account number.

The technique validates data without retaining sensitive user data or bank system interaction, protects money, and reduces privacy issues.

The Reddit user's fraud prevention idea was novel, but execution was difficult.

Integration with banking websites might be difficult owing to update needs and banking platforms.

The Reddit user calls the proposal's “biggest downside” "young people not using bank websites to transfer money."

In an interview with Cointelegraph on Sept. 1, Independent Reserve CEO Adrian Przelozny said “people over 65” are more likely to be defrauded.

The cryptocurrency exchange exec said 80-year-olds who withdraw crypto “are going to get a call” since they are more likely to be scammed.

In November 2023, Lloyds Bank found that younger UK clients are more likely to be defrauded. A fifth of crypto scam victims are 25-34, according to the bank.