Quote from: pakhirgan on Today at 02:03:30 PM

Quote from: Porfirii on Today at 01:50:46 PM

I have heard of such services before (not this website specifically, but similar ones) and they seem like a good idea because, how can you be sure of the legality of the coins you receive otherwise?

But what makes me raise my eyebrow is the fact that these services are usually free. If they don't charge you for their work, then they must be making profit otherwise, probably with your data.

Someone with experience can shed some light on the safety of using these services?

You’ve hit on a crucial point that many crypto users grapple with: the seemingly paradoxical nature of “free” services in the digital world, especially when it comes to sensitive data like transaction history. Your skepticism is completely valid, and it’s essential to approach these services with a critical eye.

Legitimacy Concerns: You’re right to question the legality of incoming crypto funds. Receiving coins linked to illicit activity (e.g., theft, scams, darknet markets) can lead to account freezes, investigations, and even legal issues. AML check services promise to help users avoid this.
Lack of Central Authority: Unlike traditional banking, where institutions are responsible for due diligence, the burden of verification often falls on the individual in crypto. This is where these services market themselves as solutions.
The “Free” Factor and Potential Hidden Costs:
Data Collection and Monetization: The most common reason why “free” services exist is that they monetize user data. This can include:
Transaction History: Detailed records of your wallet activity, which can reveal your financial patterns, trading habits, and even your identity. This data can be sold to various third parties (e.g., marketing firms, other data brokers, even potentially law enforcement).
Wallet Addresses: Your addresses can be profiled and associated with other public data, potentially deanonymizing you.
Usage Patterns: How often you use the service, what types of checks you perform, etc. – this data can offer insights that may be sold.
“Freemium” Models: A basic level of service is offered for free while more advanced analysis is behind a paywall. The goal is to get you using the free product with the hope that you will pay for premium features.
Referral Programs: Some services offer referral rewards, which can lead to users inadvertently promoting services that may not be reliable.
Bait and Switch: A free service might be used to collect user data, only to later introduce paid services or sell user lists to other entities.
Malware and Phishing: Some “free” services can be malicious; they may attempt to steal your private keys or personal information via sophisticated phishing scams.
Limited Functionality: Many free services can only perform very basic checks, which means that you may still be vulnerable despite using the service.