Cryptocurrency

CipherTrace: “90% of suspicious transactions are not delayed by banks”

Analyst company CipherTrace reports that anti-fraud banking systems are extremely poor at detecting suspicious transactions with cryptocurrencies and miss up to 90% of such transactions.

Over the past two years, financial institutions have identified 134,500 suspicious transactions involving virtual currencies, according to the company. However, this is only a small part of such transactions. According to analysts, this is due to the use of self-developed systems to identify accounts working with cryptocurrencies and the corresponding transactions. Usually, such systems simply check the name of the company that sent the transaction against a list of cryptocurrency exchanges and service providers for virtual assets.

“Such a system generates a lot of false positives and misses significant amounts of funds that cannot be associated with cryptocurrencies simply by comparing company names. Typically, such systems allow up to 70% of transactions from cryptocurrency exchanges and up to 90% of the total volume of cryptocurrency transactions, ”says the CipherTrace report .

Analysts emphasize that only a small number of banks track transactions from exchanges that are not included in the top 100 cryptocurrency platforms. In addition, often the legal name of the exchange does not coincide with the brand of the site. To solve the problem, it is necessary to use a system that will track transactions even from small cryptocurrency exchanges, as well as determine transactions with cryptocurrencies by indirect and third-party signs.

As a reminder, in July, CipherTrace rolled out a risk prediction system that alerts exchanges, investors and investigators about suspicious cryptocurrency transactions in real time.

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