CoinSmart is able to prevent fraud by running a comprehensive identity verification process that is able to detect fake addresses and dates of birth using a database offered by data collection agencies. By using these agencies, CoinSmart is able to verify a person’s identity and also keep personal user information secure.
CoinSmart also offers its users the ability to use a two factor authentication system (2FA). To enable this extra layer of security, users can download the Google Authenticator app and connect it to their account (steps for this procedure can be found here). This will require the user to use a password generated on their phone the moment they attempt to log on. They will then have to enter the newly generated code as well as the information of their account.
CoinSmart offers its users a cold digital wallet for each cryptocurrency offered on the exchange. Regardless of whether a user chooses to purchase a currency or not, there's a cold wallet available. This wallet is protected using standard industry practices and procedures. Cold storage of cryptocurrencies just refers to the practice of keeping these coins away from internet access. Most crypto exchanges will opt to keep a majority of their crypto in cold storage to keep it maximally protected against hacking attempts.