HomeBlockchainSecurityKYC accounts: never so trustworthy but involved in scams

KYC accounts: never so trustworthy but involved in scams

Profiles that have passed Know Your Customer (KYC), which is the process that users have to go through to provide platforms with biographical and financial data in order to sign up, for example, with a centralized exchange, have always been synonymous with security but, over time, this feature has failed and it has become necessary to devise a Plan B to run for cover.

KYC accounts: under the crosshairs of hackers

Over the past few years, hackers from all backgrounds (such as the Lazarus group from Korea or others) have been involved in an impressive series of multimillion-dollar scams against various hubs and individual clients by breaching systems and causing a climate of suspicion that does not help the development of the crypto market. 

Despite this, on average, crypto and NFT trades have increased greatly in terms of transaction volumes, reaching 40% and an improving average growth rate for the fourth quarter of 2022.

Crypto trading volumes

The crypto sector, despite the bogeyman of hyperinflation, war, and the accompanying high commodity prices, has not scared off investors who, in fact, continue to focus on this type of asset. According to recent research, it will reach 500 million users within the next 10 years and double in the next 20. 

On average, 76.5% of transactions made by profiles that have passed a KYC are subject to fraud to the detriment of the individual investor, the exchange hosting the transaction and the crypto asset in general, wanting to broaden the picture. 

However, 87% of transactions are blocked by the very clients themselves who report anomalies. 

Collaboration between client and platform is critical to improving the crypto industry, but it can sometimes generate ill-feeling on the part of the client not because they do not want to collaborate but because KYC often represents a hassle and a waste of time for those who want to be fast in a world where opportunities to seize are the order of the day. 

nSure to protect exchange customers?

To that end, the company nSure.ai is involved in securing reversals of any payments that may have occurred fraudulently and has taken the field with the intention of working with exchanges in order to protect investors and customers through an algorithm. 

The idea devised by nSure.ai consists of an algorithm to process various information, both sensitive information about the customer and the customer’s behaviors/choices, so as to check whether or not the transactions undertaken are consistent with their typical actions. 

In order to understand whether a purchase is fraudulent or regular, for the first time a certain ad hoc algorithm for digital goods combines the behavior of each profile with a specific and varied analysis of anomalies.  

In this regard, nSure.ai CEO and co-founder Alex Zeltcer explained:

“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 increase revenues. By knowing the crypto space, buyers will immediately benefit from a leaner authentication process that will allow companies to recognize a much higher volume of transactions.”

The algorithm devised by nSure.ai removes the middleman from a time-consuming task that risked inconveniencing the customer and making the process for making a transaction too cumbersome. 

At the same time, with its intervention, the company protects both client and hub from fraud by replacing itself as the verification agent with an accuracy that the platforms themselves would not be able to achieve working alone. 

The software is aimed not only at the crypto world but also at banks, insurance companies, online games on both Web2 and Web3 and many more, enjoying cross-usability, which corresponds to the needs of these sectors towards each other. 

The service of Alex Zeltcer and associates would also constitute an insurance that would protect the investor even, in the unfortunate borderline case for which the algorithm does not recognize an attempt at deception and the fraud goes through.

In this case, the person who suffers the fraud would be reimbursed for the value subtracted so that the user’s interests can be pursued to the end. 

George Michael Belardinelli
George Michael Belardinelli
A former corporate manager at Carifac Spa and later at Veneto Banca Scpa, blogger and Rhumière, over the years he has become passionate about philosophy and the opportunities that innovation and the media make available to us, in particular the metaverse and augmented reality