North America Procurement Council Procurement News

AMERO Launch Temporarily Delayed by Fake Vendor Registrations

June 6, 2018

The AMERO people's digital currency has been temporarily delayed due to highly sophisticated fraud in vendor registrations.

The AMERO was scheduled to launch by the North America Procurement Council (NAPC) on June 4th but did not due to the discovery on June 1st of serious fraud in vendor registrations and acceptance of AMERO.

Some fraud was expected and was easy to detect merely from the IP address used for the registration. But some was not easy to detect. We discovered also highly sophisticated fraud where fake accounts and/or AMERO acceptance were created using computers inside very large companies to make it appear as though the registration was legitimate from the IP address and email address. This means that the computers and email systems of some of America's largest companies are readily accessible to criminals.

In normal circumstances, merely calling the name on the registration would be enough to authenticate them, but the fraud actually extended to individuals working inside those same large companies.

AMERO has been credited to the accounts of the companies who have been authenticated but the AMERO won't be tradeable until most vendors have been authenticated. 

User authenication is an extreme challenge in an era when the most advanced military grade hacking tools are being leaked from the CIA and NSA, the personal details of virtually every adult American has been stolen and is available for sale on the dark web and companies like Facebook sell in-depth profiles on their users. The widespread usage of untraceable cell phones makes it even harder.  It is now easy for criminal elements to obtain more information on someone than the person actually has on themselves or is even aware of. These days it is extremley easy and inexpensive to steal someone's ID. So, how far does the NAPC have to go to really authenticate someone? Obviously much farther than we had been.

We made the assumption that because the AMERO is centrally managed and is unsuitable for criminal activity, criminals wouldn't bother with it. We were wrong, and now we know that there is indeed a highly effective international criminal element that is likely targeting all digital currencies (cryptocurrencies), including those designed specifically to be unsuitable for criminal activity.

The NAPC is implementing extensive new security measures and will be working with the International Digital Monetary Council (IDMC) on the best practices to eliminate vendor registration fraud and other fraud.

It is anticipated that the AMERO system will be fully functional by June 18 with all authenticated vendors able to redeem their AMERO with other vendors. Grants will be awarded after the system is fully operational and a sufficient number of vendors have been authenticated.