News survey: KYC verified accounts count for 76 per cent of crypto fraud

Wednesday 14 September 2022 18:01 CET | News

Israel-based fully automated chargeback guarantee platform,, has released a new report stating that KYC verified accounts make for up to 76.5% of crypto fraud.

The company is closely working with cryptocurrency exchanges to improve the security on their on-ramp transactions and allow them to remove unregulated parts of their friction-heavy KYC processes. In exchange, the overall onboarding process will be simplified and of lower friction, which will help companies that are onboarding large numbers of users, while trying to filter out and identify fraudsters.

Key findings of the research

According to, a staggering 87% of blocked transactions are triggered by first-time customers, hindering merchant acquisition efforts and increasing their marketing costs. Moreover, around 76.5% of fraudulent transactions come from KYC-verified accounts, which raises questions regarding the onboarding process and its efficiency in deterring fraudsters and scammers.

As a result of these strong fraudulent activities, merchants from various verticals – including crypto, fintech services, digital goods, and legacy payment fraud prevention companies – tend be increasingly cautious with the number of customers they onboard and decline many legitimate transactions, without understanding the reason they were red-flagged initially.

Israel-based fully automated chargeback guarantee platform,, has released a new report stating that KYC verified accounts make for up to 76.5% of crypto fraud.’s solution

To solve the problem of KYC onboarding, the Israeli-based company has developed a digital-good specific algorithm that combines user behaviour, multivariate anomaly detection, and contextual analysis to determine the legitimacy of a purchase. As a result, crypto purchasers will immediately benefit from a streamlined authentication process that will allow companies to recognize a higher transaction volume.

Chargeback transactions that receive approval will then be 100% backed by’s solution, regardless of its nature – whether fraudulent or service related, which will eliminate friction from the KYC process. By doing so, cryptocurrency exchanges and NFT marketplaces will increase their transaction volume by up to 40%, on average.
The company’s 100% chargeback guarantee solution has already received positive feedback from various crypto exchanges, following its success in other verticals, including gaming, travel, and the digital goods sector.  

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Keywords: KYC, eKYC, fraud management, fraud detection, online fraud, cryptocurrency, cryptocurrency exchange, crypto asset, NFT, marketplace, artificial intelligence, chargebacks, online authentication, multi-factor authentication, two-factor authentication
Categories: Fraud & Financial Crime
Countries: World
This article is part of category

Fraud & Financial Crime

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