Stop scams, verify good users and prevent account takeover attacks in real time

Maximize trust and conversions with industry-leading identity verification, remote desktop detection and device behavior checks.

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Overview

Cryptocurrency platforms face a host of fraud, risk, and compliance challenges that threaten their growth and credibility. The irreversible nature of crypto transactions makes them a magnet for scam artists and sophisticated fraud schemes, resulting in significant financial losses. Account takeover attacks compromise accounts, putting user funds and platform reputation at risk. The complexity of regulatory requirements, including KYC and on-chain activity monitoring, adds operational strain and creates barriers to compliance. On top of this, verifying hard-to-reach users, like Gen Z and thin-credit populations, often leads to onboarding delays or erroneously rejected applications.

Opportunity

To effectively combat scams, account takeovers, and regulatory risks, it’s essential to evaluate user behaviors and signals at every interaction. By analyzing user data collected at account creation, and incorporating device intelligence and behavioral biometrics, you can create a complete risk profile for each user. This real-time monitoring blocks fraudulent activity by detecting suspicious patterns before accounts can be compromised or funds stolen.

Statistics

• 99% verification of mainstream populations
• 96% coverage for hard-to-verify users, including Gen Z
• <1sec Document Verification Response Time

How we help

Secure, frictionless progressive onboarding

• Enable trust and safety at every stage of the customer journey with dynamic, step-up verification tailored to your platform’s needs.
• Trigger different verification checks, such as document verification or liveness detection, based on user behavior or transaction triggers to take a progressive, low friction approach to identity verification.
• Minimize friction for good users while effectively detecting and blocking fraud, ensuring security and compliance from signup to transaction and user funds transfer events.

Prevent scams and account takeover

• Block scam attempts by detecting remote access and unusual behavioral patterns in real-time.
• Identify suspicious wallet activity through advanced device intelligence and transaction monitoring.
• Stop unauthorized transfers by flagging high-risk accounts before funds leave the platform.

Meet compliance standards

• Monitor user behavior and wallet connections to identify potential risks before transactions occur, ensuring adherence to KYC and AML standards.
• Spot high-risk patterns, such as proximity to sanctioned wallets or unusual transaction flows, and take proactive measures to block risky behavior.
• Compare historical user data with real-time interactions to detect deviations from expected behaviors, providing a robust foundation for compliance while protecting your platform from fraud.

FAQ

What is KYC in crypto, and how does it work?
Know Your Customer (KYC) refers to due diligence processes required by anti-money laundering (AML) laws such as the USA PATRIOT Act and the Bank Secrecy Act (BSA). These compliance obligations bind all financial institutions (FIs). According to the Financial Crimes Enforcement Network (FinCEN), this includes businesses that transact in virtual currency, such as crypto exchanges, NFT marketplaces, and metaverse platforms. The purpose of KYC crypto laws is to combat the type of fraud and scams that netted $5.6 billion for bad actors in 2023, as well as prevent funding from reaching criminal operations.

What KYC requirements do crypto companies need to comply with?
Cryptocurrency organizations must comply with all identity verification standards and due diligence mandates in US Federal laws and regulations on financial institutions (FIs). KYC crypto compliance includes three core components:

• Customer Identification Program (CIP): The BSA stipulates that cryptos implement a risk-based approach for verifying the identity of customers who open accounts or access services. This customer onboarding process should be well-documented, available for review at any time in the event of an audit, and kept up-to-date.

• Customer Due Diligence (CDD): Factors such as occupation, geographical location, and online activity should be used to assess the risk of existing customers and during new customer onboarding. Customer risk profiles are then used to comply with enhanced due diligence (EDD) requirements that mandate increased vetting for high-risk individuals.

• Ongoing Monitoring: At customer onboarding and beyond, crypto companies must monitor all transactions and on-chain activity so that suspicious behavior can be identified and reported to the authorities immediately. Changes in customer information should also be tracked to verify the legal status of the account holder and any new beneficial owner(s).

What happens if a crypto company fails to implement proper KYC procedures?
Without the KYC crypto controls in place to reliably verify customers, a business risks facilitating criminal transactions, violating financial regulations, and breaching Office of Foreign Assets Control (OFAC) sanctions. The penalties for neglecting to establish compliant processes may include billion-dollar fines and prison sentences for executives.

Why is identity verification critical for customer onboarding in crypto?
Identity verification helps prevent financial crimes, ensures regulatory compliance, and protects users from fraud. This is especially important in the crypto space due to the immutable nature of blockchain transactions. Unlike traditional banking where chargebacks can be used to restore funds, crypto transfers can rarely be reversed once executed. This makes virtual currencies uniquely attractive to bad actors and scammers and is why robust identity checks at the customer onboarding stage are exceptionally vital for protecting users and platforms alike. Strong verification also builds trust in the company’s ecosystem by demonstrating continuous compliance with stringent KYC crypto standards.

What types of triggers does Socure use to determine when additional verification is needed?
Socure takes a multi-layered approach to identity verification, triggering enhanced KYC crypto checks based on behavioral analytics and transaction activity. The platform’s progressive, low-friction mechanism to evaluate trust detects and adapts in real-time to a wide range of risk signals, including:

• Device risk (Remote desktop access, velocity, IP address)
• High-risk wallets and connections to other wallets
• Geographic location (proximity to sanctioned wallets)
• Unusual transaction flows
• Anomalous user behavior

When these triggers are detected, Socure’s machine learning algorithms instantly activate additional verification processes, such as hyper-accurate document verification or liveness detection via biometric analysis.

What makes Socure’s KYC solution different from other crypto identity verification providers?
Unlike other tools that provide spot checks (email address risk assessment, phone number verification, or watchlist screening), Socure’s KYC crypto identification platform delivers an integrated, holistic view of identity. Capable of stopping up to 99% of all forms of ID fraud and reducing fraud decisioning to less than 150 milliseconds, Socure is trusted by over 2,800 top enterprises for KYC. The solution improves auto-approval rates by up to 40% and reduces manual reviews by up to 90%. Powered by an advanced AI trained on feedback data from the industry’s top consortium network—Sigma Identity—Socure makes low-risk customer onboarding easier without compromising platform security or compliance. This comprehensive identification solution also provides up to 95% coverage for hard-to-verify users, including thin-file and Gen Z customers, enabling crypto businesses to grow with confidence.