Payment fraud in the crypto space is a serious problem – no doubt about it. Entrepreneurs believe that crypto is attractive to fraudsters and because of that, they are introducing friction (such as KYC), and customers suffer. If you want to achieve zero fraud, you simply say NO to everyone. But the more you accept, the more the risk of getting fraudsters. That said, is crypto fraud prevention really that complicated?

On your podcast, Alex will break the myth of crypto fraud prevention being difficult. Specifically, why businesses should use behavioral analysis and recognize scalable fraud patterns. He can share why adapting a safety strategy — one that emphasizes blocking fraud while streamlining the user experience — removes these friction points and increases the conversion rates by more than 100%.

With a boom in cryptocurrency interest over the past year, it’s no wonder that “Olympic-level scammers” have taken notice of new opportunities for illicit activity. The high-tech nature of crypto will continue to attract sophisticated scammers. With cryptocurrency scams on the rise, how can businesses protect themselves against attack?

On your podcast, Alex can share five strong examples of ways fraudsters try to attack crypto businesses. Specifically, why do dormant users allow fraudsters to mimic long-term patterns, and why people wouldn’t even recognize anything stolen. He can talk about the dangers of SQL injections, 3rd-party fraud, and how social engineering tricks a service provider into giving access to multiple sensitive accounts.

KYC is the most important part of maintaining a healthy financial system. However, customers resent having to provide all the information requested of them. 80% of crypto fraud is with KYC accounts as fraudsters are buying hacked accounts. Verification isn’t portable, and as long as KYC continues with current methods of ID verification, these problems are likely only going to get worse.

On your podcast, Alex can talk about his experience with KYC and explain why it’s broken. Specifically, even though KYC is helpful when off-loading as it makes money laundering hard, the regulations are overly strict. He can share how to be effective with identity verification, and share why data must be up-to-date and reflect material changes.

Employing a team of fraud detection experts might mitigate some risks, but these teams are expensive and slow. Orders that are flagged are those that aren’t low-risk enough to be automatically accepted, but not high-risk enough to be automatically rejected. Where exactly these lines are is up to the merchant. But can businesses continue manually reviewing transactions as the last line of defence?

On your podcast, Alex can share what makes manual fraud review redundant and why it doesn’t work for crypto businesses. Specifically, why in standard industries, fraud is not that super sophisticated. But when the incentive is stratospheric, especially when dealing with crypto, fraudsters have the motivation and incentive to invest enough to create sophisticated tools. As a result, manual fraud review doesn’t work.