Chainalysis Expands Fraud Prevention with Acquisition of Alterya
James Ding Jan 13, 2025 10:02
Chainalysis acquires AI-powered fraud detection firm Alterya to enhance its strategy against illicit transactions and protect cryptocurrency users from scams.
Chainalysis, a leader in blockchain analysis, has announced the acquisition of Alterya, an AI-powered fraud detection company known for its ability to identify scammers before they reach their victims, according to Chainalysis. This strategic move aims to bolster Chainalysis's efforts in preventing illicit activities within the cryptocurrency space.
Enhancing Fraud Detection Capabilities
Since its inception, Alterya has collaborated with prominent cryptocurrency exchanges and financial institutions, including industry giants like Binance, Coinbase, and Block. The firm monitors over $8 billion in transactions monthly, safeguarding 100 million users from the escalating threat of authorized fraud. In 2024 alone, Alterya detected $10 billion sent to scams, working proactively to mitigate losses and foster trust among its clients.
Addressing the Challenge of Modern Fraud
The rise of generative AI has facilitated the proliferation of fraud, enabling scammers to create convincing fake content and identities. Alterya's research indicates that 85% of scams involve fully verified accounts, making traditional identity-based solutions insufficient. By integrating Alterya’s technology with the Chainalysis blockchain data platform, the effectiveness of detecting fraudulent activity is expected to be significantly enhanced.
Real-Time Fraud Protection
The acquisition empowers Chainalysis to offer real-time fraud protection for payments and improved fraud detection during Know Your Customer (KYC) processes for exchanges, blockchains, and wallet providers. Alterya has already demonstrated success in reducing fraud by 60% for major crypto exchanges, as well as decreasing scam-related disputes and optimizing manual operations.
Industry and Government Collaboration
Alterya's tools are not only valuable to the private sector but also to government agencies seeking to combat emerging fraud trends like pig butchering scams. Chainalysis plans to leverage Alterya's insights to alert financial services firms about potential fraud risks on fiat payment rails before funds transition into cryptocurrencies.
This acquisition marks a significant advancement in Chainalysis's mission to provide a comprehensive risk management solution that encompasses prevention, compliance, and remediation. By welcoming Alterya into its fold, Chainalysis is poised to enhance trust in blockchain technology while expanding its operations in Tel Aviv to safeguard billions globally.
For more information on Chainalysis's acquisition of Alterya, visit the official announcement on Chainalysis.
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