Because of the risk of holding so much value in one location that can only be accessed online, many cryptocurrency exchanges have adopted KYC ID verification solutions to ensure their users are who they purport to be. But a new report from technology provider nSure.ai found that even when users are verified through these mechanisms, fraud attacks overwhelmingly target “authenticated” accounts.
The report from nSure.ai, an Israeli startup with an AI-based antifraud fraud solution designed specifically for digital goods merchants, found KYC verified accounts make up more than three-quarters (76.5 percent) of the total crypto accounts that are attacked by fraudsters. And, nSure.ai found, first-time customers account for 87 percent of blocked transactions.
“Fraud should not be accepted as a standard part of conducting business. By removing this barrier, we reduce the friction caused by existing anti-fraud measures and boost revenues,” said Alex Zeltcer, CEO and co-founder of nSure.ai. "[Users who are] familiar with the crypto space will immediately benefit from a more streamlined authentication process allowing companies to recognize a much higher transaction volume.”
