Following this acquisition, Chainalysis aims to provide real-time proactive fraud protection for payments, as well as improved fraud detection during Know Your Customer (KYC) exchanges, blockchains, and wallet providers.
In addition, the company will continue to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
As fraud and scams have long been a scourge on the financial services industry, from the rise of credit card fraud to today’s sophisticated social engineering scams, generative AI also made fraud more scalable and affordable to conduct. This means that scammers can easily produce high-fidelity fake content and identities in order to deceive clients across social media and communication platforms to autorise payments under false pretenses.
This process makes it more difficult for financial institutions and crypto businesses in order to detect when scammers quickly monetise through crypto and real-time payment systems. At the same time, according to Alterya’s research, 85% of scams also involve fully verified accounts that bypass traditional identity-based services.
Both fraud detection and compliance rely on granular, real-time data, and the process of integrating Alterya technology with the Chainalysis blockchain data platform is set to bolster the effectiveness of each, building network effects across blockchains or other digital payment rails, while also optimising Alterya’s ability to uncover more fraudulent activity.
In addition, government agencies may also leverage Alterya’s insights for lead generation into pig butchering, scams, and other emerging authorised fraud trends. Chainalysis is expected to continue to build upon Alterya’s collection of fraud identifiers on fiat payment rails in order to provide insights to financial services firms on the fiat accounts where customers are losing money to fraud.
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