#1 What are we fighting against?
Cybercrime is a fast-growing market that offers huge profits and minimal risks. According to the report published by the Center for Strategic and International Studies (CSIS), the annual damage inflicted by cybercrime to the economy is within the range of 375–575 billion USD, exceeding the GDP of many countries around the world.
Today, every user online must exercise extreme caution to avoid falling into the traps set up by fraudsters in order to steal money.
#2 Categories of Internet scam
- Shopping Scam - fake online stores, vendors, auctions (such actors might, for instance, seek to receive payments with no goods to be delivered or sell fake products, presenting them as genuine).
- Health and Medical Scam - sale of counterfeit medial products or “silver bullet” medications (for instance, sale of medicines that assure fast treatment against cancer or HIV).
- Investment Scam - projects that promise fast and high returns on investments, but knowingly act to embezzle investors funds
- Pyramid Schemes - projects that shuffle money in order to pay out returns to first-to-come investors from the funds, they receive from subsequent participants.
- Jobs & Employment Scam - offering fake jobs, seeking to make other persons pay amounts of money in the form of entry fees, theft of their personal data, etc.
- Betting & Sports Scam - fake betting companies, sale of software that can allegedly predict sport events results, etc.
- Phishing - creation of clones (copies) of popular websites or web pages to be used for stealing personal data, credit cards data, users online wallets.
- Fake Charities - projects that raise donations for allegedly charitable purposes, but in reality only seek to embezzle.
- Your Answer - this is by no means an exhaustive list of existing and possible variations of Internet fraud. Input any case you've come across and CryptoPolice will look into it.
#3 Categories of cryptocurrency scam
- ICO Scam- projects aimed at raising funds through initial token sale, which promise high returns to their investors, but knowingly act to embezzle investors’ funds (projects with no intent to roll out, non-existing projects, financial pyramids, Ponzi schemes, etc.).
- Fake Projects - projects that present themselves as other ventures or carry out fraudulent operations using a legal business as a front. For instance, fake exchanges that carry out unscrupulous activities, such as freezing users funds without explanation or defrauding users of their funds in any other manner.
- Crypto Media Scam - news sites, blogs, chats, etc. that disseminate false information, seeking to manipulate public opinion.
- Phishing - sites, pages, wallets or any other web-based objects that imitate the external appearance and underlying mechanics of other, real objects or projects in order to steal funds or personal data.
- Your Answer - this is by no means an exhaustive list of existing and possible variations of cryptocurrency scam. Input any case you've come across and CryptoPolice will look into it.
#4 Mind-boggling Statistics
- $500 billion: Microsoft’s estimate for the total potential cost of cybercrime to the global community. (Source:Microsoft)
- $158 billion: The collective amount of money consumers lost globally in 2015 due to cybercrime. The U.S. accounts for $30 billion of that loss. (Source: Symantec)
- $50 million: The total cost of cybercrime across 237 major companies in 6 countries. (Source: Micro Focus)
- $530 million: The cost of the January 2018 Coincheck hack, the biggest cryptocurrency heist to date. (Source:Time Money)
- $6 trillion: global cybercrime damages predicted to cost $6 trillion annually by 2021 (Source: cybersecurityventures.com)
#5 What is CryptoPolice?
CryptoPolice is one of the first decentralized organizations of a new type, where hierarchical governmental systems are transformed into autonomous heterarchical ecosystems, powered by shared knowledge, which radically differ from the culture of State governance based on the centralization of knowledge.
The CryptoPolice platform will provide safety on the Internet by bringing together the wisdom of crowds and technologies. We see CryptoPolice as a global organization that will tap into the synergies brought by modern technology and community efforts, in order to protect security online and act for the good of the public at large.
One of the main goals for CryptoPolice is to sustain an active and engaged community. We plan to achieve this by offering opportunities to help ensure the safety of online space, earn performance-driven rewards, undergo training and review training materials.
#6 The Wisdom of Crowds
It's really important to understand how CryptoPolice works. The whole internet community can participate in the global fight against scam. Any online user can make an application to CryptoPolice, pointing to any suspicious fact. Then, an Officer reviews a report and delivers a verdict, which will subsequently undergo a multi-level verification process by other Officers. The factual data that were verified and confirmed is stored in an archive, which forms the basis for the “WatchDog” scam notification system, helping protect users online.
#7 WatchDog
WatchDog is the main product that will be delivered by CryptoPolice. Moving forward, the team will seek to roll out two versions of this system:
- WatchDog Crypto – the version developed specifically for the crypto community and delivering protection against cryptocurrency scam.
- WatchDog Web – the full version, enabling overall protection against Internet fraud.
Both versions will be accessible in the free mode, limited to a basic set of functions. The full versions will be provided through monthly subscription.
The following channels are used for reporting:
- Plugin for browsers – main tool for informing users. Whenever a user interacts with an object, a notification pops us, which specifies the object's status, verification history and the final verdict reached by the Officers. In addition, the plugin enables feedback: you can send a notification to the system in one click (right from the website of the object).
- Mobile application – enables pop-up notifications on a mobile device.
- Bots on social media and messengers – quick notifications about any scams identified, new crypto projects and publications.
#8 Users and Roles
On the platform, users can have the following roles:
- Simple User – any Internet user who uses the platform of CryptoPolice or its functions.
- Internet Project Owners – a representative of an Internet project, whose participation in the project has been approved by CryptoPolice.
- Officer – an expert-level user who has been certified by CryptoPolice.
#9 Multilevel Verification
The decentralised algorithm of multi-level data verification is a key mechanism at CryptoPolice that offers enormous potential for use cases outside the crypto space.
The operating principle of the decentralised algorithm of multi-level data verification is based on the idea of a hybrid blockchain-algorithm. Data verification is implemented through the distribution of the received information among a randomly-formed group of CryptoPolice Officers, and is followed by going through several inspection levels with the purpose of obtaining a required total number of approvals.
Owing to the operation of the algorithm, the evaluation of the information is implemented considering the following requirements:
- No corruption – the algorithm eliminates corruption, risks of collusion or information misrepresentation, as it is distributed, transparent and based on the blockchain;
- Rapidity – the evaluation of information occurs as fast as possible owing to the motivation of Officers to receive rewards earned by those Officers who are the first in obtaining a required number of approvals.
- Completeness – since any user can submit a request for verification and receive a reward for it, there is an effect of total involvement of the entire society in the formation of the CryptoPolice archive with a maximum amount of important and necessary information.
- Flexibility – the algorithm is continuously being improved with the help of community expertise; it can also be scaled and applied to the verification of various types of data.
The multi-level verification algorithm is a flexible tool that is able to be rapidly replenished and upgraded though saving all basic operation principles. This feature provides for efficient elimination of vulnerabilities, which, as proven in our long-term experience of working with IT projects, definitely emerge in the course of operation no matter how perfect the mechanism is in its initial stage.
#10 Community earns tokens for activity
CryptoPolice has its own domestic economics ensured by an O fficerCoin token and enabling each user to be rewarded for useful work.
*User reward will be paid out in OfficerCoin tokens (OFCR), but the reward amount will be fixed in USD in order to protect rewards from fluctuations. These are our predictions and were calculated for active platform users (active for 2–3 hours per workday) for a fixed Officer count.
#11 Escrow
The CryptoPolice escrow contract is a smart contract specifically adapted for CryptoPolice that ensures transfer of funds by the contracted parties in case of certain events.
CryptoPolice offers two types of escrow contracts:
- Target Cap Escrow – the contract implies automatic capital return to investors incase the owners fail to reach the minimum target capital;
- Road Map Escrow – the contract ensures a gradual transfer of the raised capital by the project owners, as well as further return of a part of the capital to investors in case of termination of further project implementation.
CryptoPolice offers to establish the fact of achievement or non-achievement of an intermediate aim by various methods:
- Investors’ voting – the decision on further funding is taken by the majority of investors, according to the number of tokens held. Thus, the interests of investors are completely protected.
- Algorithm of multi-level data verification – the decision on further funding is taken according to a verdict issued by CryptoPolice Officers that has gone through the algorithm of multi-level verification, which allows taking objective decisions taking into account the interests of both ICO owners and investors.
- Mixed – the decision on further funding is taken by combining investors’ votes and CryptoPolice Officers’ verdict, which provides a balance between investors’ interests and Officers’ independent evaluation.
- Public voting – the decision on the continuation of the project is taken by public voting. This method can be applied for social projects.
All methods for consensus achievement will be implemented in CryptoPolice escrow contracts. ICO owners can choose an option that is more feasible depending on the specificity of the project implemented.
#12 Artificial Intelligence - BLOODHOUND AI
When performing their protection functions, the algorithms behind CryptoPolice can process an immense number of facts in order to determine whether they are true or false. All of the incoming data, delivered verdicts, both correct and failed – all of this information is stored on chain at CryptoPolice. These data points form the information network of facts, verdicts, scams, projects, and insights.
This enormous database will serve as the ideal medium to train self-learning machines, driven by neural networks, thus enabling developers to benefit from AI capabilities across platform operations. The main goal that artificial intelligence will help achieve is increasing the capacity for processing factual data.
We plan to carry out a staged roll-out of artificial intelligence:
- Stage 1. Sandbox - AI will be actively leveraged in the sandbox in order to identify duplicate applications, protect against bot attacks and identify suspicious and unnatural actions. This will help test AI and make it ready for the follow-up roll-out.
- Stage 2. Assistant to Officer - AI will help Officers with routine and mechanical work, such as preliminary analysis of factual data, searching for relevant data, and delivery of preliminary verdicts.
- Stage 3. Bloodhound - The full-stack roll-out of AI, enabling it to carry out an independent search and preliminary analysis into scams.
#13 COMPARISON
#14 CURRENT STATUS
Latest updates & announcement
Video updates
#15 TEAM
The CryptoPolice team is a close-knit group of likeminded people who have been developing various IT products for more than two years together, thus successfully confirming the high level of their professionalism. The team involves experienced specialists most of whom have been in the IT field for more than years.
Our specialists are active participants in the crypto community: among us there are experienced blockchain developers, authors of crypto projects and crypto investors.
#16 Join the global fight against scam
#17 Official links
