How Chainalysis and Alterya Are Transforming the Fight Against Scams with Real-Time AI Solutions
In Brief
Chainalysis, a blockchain research and compliance solution leader, is combining Alterya, an AI-powered fraud detection tool, with blockchain technology to combat illegal activities in the financial services industry.
The ongoing threat of fraud has long plagued the financial services industry. Illicit activities change in tandem with technology improvements, ranging from complex social engineering schemes to credit card theft. With the recent acquisition of Alterya, an AI-powered fraud detection tool, Chainalysis, a world leader in blockchain research and compliance solutions, is making a daring move to fight fraud. This combination, which blends innovative fraud detection technology with blockchain, marks an important turning point in the effort to prevent illegal activities.
The Performance History of Alterya in Preventing Fraud
Alterya has become a key player in the battle against fraud since its founding. In order to protect more than $8 billion in transactions per month, Alterya has teamed up with top cryptocurrency exchanges like Binance, Coinbase, and Block in addition to financial institutions. Its significance is clear: keeping an eye on cryptocurrency and fiat transactions to safeguard over 100 million customers from fraudulent activities.
Alterya’s data highlights its capacity to identify and stop fraudulent activities. The platform proactively works with companies to avoid fraud, alleviate financial losses, and strengthen consumer trust. In 2024, it discovered $10 billion routed to fraudsters. Chainalysis’s dedication to creating a safer digital financial environment is well aligned with these initiatives.
The Increasing Problem of Contemporary Fraud
From simple schemes to more complex operations, fraud has changed throughout time. Scammers are able to generate convincingly fake information and identities thanks to the development of generative AI, which has increased the scope and effectiveness of fraudulent operations. These tools use social media and communication channels to trick victims, taking advantage of their trust to approve payments under false pretenses.
Identifying fraudulent activity in increasingly complicated systems is a difficulty for financial institutions and cryptocurrency companies. Alterya’s study reveals an important realization: Fully verified accounts are used in 85% of frauds, eluding the use of conventional identity-based detection techniques. This discovery highlights the necessity of a strong, data-driven strategy for preventing fraud.
The industry is given access to an improved solution by fusing the Chainalysis blockchain data platform with Alterya’s fraud detection capabilities. The connectivity makes it easier to spot fraudulent activity on digital payment rails and blockchains, allowing for real-time information and better preventative measures.
Protection Against Fraud in Real Time for Financial Services
Chainalysis will be able to offer unmatched real-time payment fraud prevention and improved detection during Know Your Customer procedures due to the purchase of Alterya. For exchanges, blockchains, and wallet providers functioning in a setting where speed and security are critical, this functionality is essential.
The effectiveness of Alterya’s solutions has already been shown. Leading cryptocurrency exchanges that use Alterya’s technology have claimed greater operational efficiency, a 60% decrease in fraud, and fewer conflicts involving scams. These outcomes promote trust in digital financial systems by protecting financial institutions and improving the client experience.
“Alterya has been a reliable partner in helping Coinbase identify wallet addresses tied to known investment scams,” said Ilan Zimmer, Director of Payment & Operational Risk at Coinbase, pointing to Alterya’s reliability. Thanks to this partnership, they are now able to protect clients and their hard-earned money better from unscrupulous individuals. The real-world effects of Alterya’s solutions are reflected in this endorsement.
Dealing with New Trends in Fraud
Fraud trends are always changing, and new strategies like pig butchering scams are becoming more popular. Social engineering is used by these scammers to trick victims into making large financial investments under false pretenses. Governmental organizations and financial institutions may detect and stop these frauds with the use of Alterya’s insights.
Alterya’s capacity to gather and examine fraud identifiers on fiat payment rails is one of its most notable features. Financial institutions may use this capacity as an early warning system to identify suspicious activity before capital moves into cryptocurrency. In order to stop the flow of illegal funds and avoid financial losses, such preventative actions are essential.
Chainalysis’s capabilities have been strategically expanded with the purchase of Alterya. The business approaches risk management holistically by combining prevention, compliance, and remediation into a single solution. Customers will profit from an end-to-end architecture that tackles fraud at every point of its lifecycle thanks to this alignment.
The goal of Alterya to shield people from fraud and scams is closely related to Chainalysis’s objective to increase confidence in blockchains. Fraud is one of the most lucrative types of cryptocrime, and it seriously undermines the legitimacy of the sector. Chainalysis and Alterya’s collaboration demonstrates a common dedication to promoting security and trust in the ecosystem.
Improving International Cooperation
Additionally, the acquisition represents a major increase in Chainalysis’s worldwide presence. Experts in blockchain analysis, artificial intelligence, and fraud detection will come together at Alterya’s Tel Aviv location to act as a center for innovation. Through this partnership, billions of users globally will be protected against fraud, guaranteeing quicker and safer payment experiences for everyone.
Chainalysis and Alterya are well-positioned to drive advances in fraud prevention by merging their resources and expertise. The goal of fraud detection and prevention is to foster confidence and protect financial transactions. Trust is essential to acceptance and expansion in the digital economy. By tackling one of the biggest risks to the sector, Chainalysis’s acquisition of Alterya demonstrates a dedication to building trust.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
