Blockchain data platform Chainalysis acquired Alterya, an artificial intelligence-powered fraud detection solution that works with cryptocurrency exchanges and fintech companies to identify fraudsters and protect end users of firms from authorized swindle.
The implementation of the mentioned deal will allow Chainalysis to proactively protect payment transactions from fraud in real-time and enhance the detection of relevant criminal activity as part of the Know Your Customer (KYC) procedure for exchanges, blockchains, and wallet providers. The relevant information is contained in a message that was posted on the company’s blog last Monday, January 13.
Chainalysis co-founder and chief executive officer Jonathan Levin said that last year Alterya detected $10 billion sent to fraudsters. He also noted that the mentioned firm worked with its clients to proactively prevent fraud, minimize losses, and build consumer trust.
Alterya helps crypto exchanges reduce fraud, decrease the number of scam-related disputes, and improve the efficiency of manual operations. After the technology of this company is combined with the blockchain data platform Chainalysis, both will gain greater effectiveness.
Moreover, Alterya’s insights can also be used by government agencies to identify emerging trends in the area of authorized fraud. Besides, financial services companies can leverage the mentioned insights to detect fraud on fiat payment rails.
Jonathan Levin stated that the acquisition of Alterya is a significant move forward in Chainalysis’ work to provide a holistic risk solution that includes prevention, compliance, and remediation. Mr. Levin also noted that Alterya’s mission to protect people around the world from fraud and scams, which is one of the most common categories of crypto crimes, is an integral part of the company he heads’ mission to build trust in blockchains.
It is worth mentioning that about a month ago, Chainalysis acquired Hexagate, a security provider to firms such as Coinbase and Consensys. At that time, the company, led by Jonathan Levin, was impressed by Hexagate’s suite of monitoring, mitigation, forensics, and compliance solutions, which identified all known hacks over the past two years. In December, Mr. Levin stated that in his opinion, to advance Chainalysis’ mission to build trust in blockchains, it is necessary to expand the business beyond investigations and into prevention.
Also last month, a company led by Jonathan Levin reported that the total value stolen in crypto hacks reached $2.2 billion in 2024. In 2023, the corresponding figure was fixed at $1.8 billion. At the same time, the record reading was observed in 2022. In the mentioned year, the specified figure was $3.7 billion.
It is worth noting that the issue of cybersecurity has become significantly more relevant recently. The corresponding tendency is associated with the rapid development of advanced technologies, including artificial intelligence. In this context, it is worth mentioning that scammers also have access to machine intelligence tools, which is why their activities have become more sophisticated. Artificial intelligence can generate audio and video simulating the voices and images of real persons. There have already been cases when people transferred money to scammers, being sure that they were helping relatives or friends as part of the appropriate actions. Also, for example, scammers can make a video call on behalf of superiors of victims and convince them of the need for certain actions. The main purpose of the mentioned criminals is to steal money. Sometimes the appropriate actions are aimed at compromising the victim, but in most cases in this context, the perpetrators are still aimed at achieving the financial result they need. It is worth noting that this does not mean that artificial intelligence is harmful. AI, like any other technology, can be used both in positive scenarios and to achieve destructive goals. One of the tools to combat fraud in cyberspace is the personal awareness of users. For example, an Internet search query such as how to know if my camera is hacked will allow anyone to get information about signs of unauthorized access to the device. Digital literacy is effective in the context of combating cybercrime, including fraud in a virtual environment. At the same time, relevant knowledge needs to be updated periodically, as fraudsters seek to use advanced technologies in their activities that are in the condition of permanent development. Currently, there is a situation in which the same technologies can be used both to commit crimes and to prevent appropriate actions.
