The federal prosecutor closed the alternative payment network free reserve under the Patrick Act. On October 26, 2001, President George W. Bush signed the Patriot Act in response to the September 11 terrorist attacks.
The bill expands the authority of the finance minister to supervise financial transactions. Financial transactions involving foreign individuals and entities in particular.
Liberty Reserve is one of the largest web-based payment processing and transfer systems in the world.
The US Department of Justice said that since the establishment of the Liberty Reserve in 2006, it has handled 55 million transactions worth more than US $6 billion, and as of last year, it had more than 1 million users.
The Free Reserve Bank operates like a bank. Customers can only deposit in their own currency. Customers can open an account in Liberty Reserve and provide the bank with a false name and email address. The key to this plan is that you can’t put money directly into your account. On the contrary, customers should work through middlemen, who are called “middlemen”; Heat exchanger “They are usually unlicensed people in Malaysia, Nigeria, Vietnam and other places, and they buy a large amount of currency from the Free Reserve Bank. Customer payment. “; Switch”; Exchange US dollars (or other currencies) for a certain amount of free reserve currency. Currency deposited in the customer’s account. When a client attempts to withdraw funds, the procedure may be reversed on exchanges in other countries. (Liberty Reserve itself charges 1% of the exchange fee for transactions, but the exchange generally charges more than 5% for each transaction.) Liberty Reserve Bank has no customer identity data (records of how or where customers remit money), because deposits and withdrawals are made through the exchange.
In addition, they also allow customers to make international payments from one account to another via the Internet, with little problem.
So everyone thinks that free reserve is the most popular payment method in underground cyber crime.
These news have increased the demand for reliability and Sobering.
In the field of international settlement, this field has made great progress in recent decades.
Before the era of Internet and rapid communication in the past, when banks and authorities had absolute control over banking services, they could not be managed without banks. Later, a bank cartel was formed, and the commissions for various services provided by them were very high. Although the competition among some banks is increasingly fierce, it continues today.
Previously completely bank led services-
Start with a general transaction executed on the account by all persons wishing to make international payments between global accounts.
In recent decades, due to the huge technological development in the computing field, especially the Internet, especially satellite and optical fiber communications, many transactions were completed in a simple, simple and convenient way in the past due to the lack of these means.
One of the industries accelerated in recent years is international payment, especially credit transfer by private companies. Compared with banks, the biggest advantage provided by these companies is that the commission is far lower than the bank requirements, and it can also save the long waiting time for queuing services.
In principle, due to concerns about fraud and impersonation, people have natural and understandable concerns about transactions through the Internet. However, in order to ensure safe online use, several effective mechanisms have been established.
In order to check the legitimacy of the website and whether it is an official website, and get the approval of the authorities, it must include the approval signature and confirmation number of the authorities supervising the economic and financial fields.
The purpose and function of the agency is to ensure that all activities carried out by the agency are legal, subject to the restrictions of various agencies, and free reserves and other events do not occur.
Please check the approval of the regulatory authority and the confirmation number that must be displayed on the company’s website to verify the legitimacy of the company you want to cooperate with.
