The financial services industry has faced a persistent threat: fraud. As technology advances, so do the tactics used by criminals. From simple scams to more complex schemes, the landscape is constantly evolving. Recently, Chainalysis, a leader in blockchain research and compliance, made a significant move by acquiring Alterya, an AI-driven fraud detection tool. This partnership combines their strengths to tackle fraud more effectively.

Since its inception, Alterya has been a key player in the fight against fraud. It works with major cryptocurrency exchanges like Binance and Coinbase, along with various financial institutions, to protect over $8 billion in transactions each month. This collaboration is crucial for monitoring both cryptocurrency and fiat transactions, helping to safeguard more than 100 million customers from fraudulent activities.

Alterya's data shows its effectiveness in identifying and preventing fraud. The platform actively collaborates with companies to reduce financial losses and build consumer trust. In 2024, it identified $10 billion that was funneled to fraudsters. This commitment aligns perfectly with Chainalysis's goal of creating a safer digital financial environment.

Fraud has changed over time. Scammers now use advanced tools, including generative AI, to create convincing fake identities. This makes it easier for them to deceive victims. They exploit social media and other channels to gain trust and trick people into making payments under false pretenses.

Financial institutions face challenges in detecting fraud in these complex systems. Research from Alterya reveals that 85% of fraud cases involve fully verified accounts. This finding shows the need for a strong, data-driven approach to fraud prevention.

By combining Chainalysis's blockchain data with Alterya’s fraud detection capabilities, the industry gains a powerful tool. This integration enhances the ability to spot fraudulent activities across digital payment systems and blockchains. It allows for real-time insights and better preventative measures.

With the acquisition of Alterya, Chainalysis can now offer unmatched real-time fraud prevention and improved detection during Know Your Customer (KYC) processes. This capability is essential for exchanges, blockchains, and wallet providers operating in fast-paced environments.

Alterya's solutions have already proven effective. Leading cryptocurrency exchanges using its technology report increased operational efficiency, a 60% reduction in fraud incidents, and fewer disputes over scams. These outcomes help build trust in digital financial systems, protecting institutions and enhancing the customer experience.

“Alterya has been a reliable partner in helping Coinbase identify wallet addresses linked to known scams,” said Ilan Zimmer, Director of Payment & Operational Risk at Coinbase. This collaboration allows Coinbase to better protect its clients and their assets from fraudsters. It highlights the real-world impact of Alterya’s solutions.

Fraud trends are always changing. New tactics, like pig butchering scams, are on the rise. Scammers use social engineering to trick victims into making large investments under false pretenses. With insights from Alterya, government agencies and financial institutions can detect and stop these scams.

One of Alterya’s standout features is its ability to analyze fraud indicators on fiat payment systems. Financial institutions can use this as an early warning system to identify suspicious activity before funds move into cryptocurrency. Such proactive measures are vital for stopping the flow of illegal funds.

The acquisition of Alterya enhances Chainalysis's capabilities. The company takes a comprehensive approach to risk management by integrating prevention, compliance, and remediation into one solution. This alignment allows customers to benefit from a complete framework that tackles fraud at every stage.

Alterya’s mission to protect people from fraud aligns closely with Chainalysis’s goal of increasing trust in blockchain technology. Fraud is one of the most profitable forms of cybercrime, and it undermines the legitimacy of the sector. The collaboration between Chainalysis and Alterya reflects a shared commitment to promoting security and trust in the ecosystem.

Additionally, this acquisition boosts Chainalysis’s global presence. Experts in blockchain analysis, AI, and fraud detection will gather at Alterya’s Tel Aviv office, creating a hub for innovation. This partnership aims to protect billions of users worldwide from fraud, ensuring faster and safer payment experiences for everyone.

By combining their resources and expertise, Chainalysis and Alterya are well-positioned to advance fraud prevention. The goal of detecting and preventing fraud is to foster trust and safeguard financial transactions. Trust is essential for acceptance and growth in the digital economy. Through this acquisition, Chainalysis shows its commitment to building trust by addressing one of the sector's biggest risks.