Predictive crypto risk and intelligence platform Merkle Science has joined forces with nSure.ai, an AI-driven payment fraud prevention platform specifically tailored for the crypto industry to purge crypto of fraud.
“This partnership will reduce crypto crime, combat fraud, and ultimately drive crypto adoption through a safer landscape for digital currency,” the companies mentioned in a press announcement shared with AlexaBlockchain.
Why does it matter: As the excitement for cryptocurrency continues to rise, the shadow of cybercrime grows alongside it. According to a study Immunefi, the crypto industry lost over $1.3 billion in hacks and frauds last year. Another study unveiled a more concerning surge in crypto thefts over the years. Starting from a relatively modest sum of $2.3 million in 2011, the figure skyrocketed to an astonishing $3.5 billion by 2022.
In fact, financial institutions are facing an unprecedented challenge due to crypto fraud, resulting in increased compliance costs.
The widespread fear of fraudulent transactions has significantly hindered the growth and acceptance of cryptocurrency as a legitimate medium of exchange within the global economy. This apprehension has deterred both merchants and consumers from fully embracing digital currencies, impacting their potential to become a mainstream financial tool.
- Addressing this concern, Merkle Science CEO Mriganka Pattnaik pinpointed fraud as the primary obstacle to crypto adoption.
- “Our partnership with nSure.ai overcomes this obstacle, enabling both sides of the marketplace to use cryptocurrency with unprecedented security, safety, and, most of all, confidence,” Mriganka added.
Collaborative effort: By pooling their resources and expertise, Merkle Science and nSure.ai aim to dismantle these barriers.
- The partnership leverages nSure.ai’s prowess in preventing payment fraud within the crypto segment, allowing its customers to tap into Merkle Science’s Compass—a cutting-edge, behavior-based blockchain transaction monitoring solution.
- This tool empowers end users to engage with cryptocurrency transactions confidently, bolstering the security framework from the point of onboarding all the way through to any subsequent on-chain activities.
- Conversely, Merkle Science’s clientele stands to benefit from nSure.ai’s sophisticated fraud prevention platform, which offers a dual advantage: it not only aids in thwarting payment fraud during the fiat-to-crypto conversion process but also streamlines the onboarding of new customers and partners, thus fostering business scalability.
By covering a broad spectrum of fraud detection and prevention capabilities—from tracking down fraudulent activities to anticipating potential threats—the partnership aims to deliver an end-to-end solution for safeguarding the crypto lifestyle.
- nSure.ai Co-founder and CEO Alex Zeltcer highlighted the increasing demand among crypto exchanges and on-ramp entities for more secure transaction processes while converting fiat into cryptocurrency.
- “Partnering with Merkle Science and leveraging Compass will ensure that businesses can identify crypto fraud, enable the seamless transactions of legitimate consumers eager to use digital currency for everyday use, and facilitate the successful onboarding on on-ramp partners,” Alex added.
The bottom line: Such developments are crucial for crypto’s journey from a niche interest to a mainstream financial instrument, promising a future where digital currencies can be embraced with confidence by a broader audience.
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