In simple terms, the blockchain analysis company Chainalysis has taken its initial steps into artificial intelligence by purchasing a business specialized in detecting fraud.
As per a January 13th report from Business Insider, it was revealed that Chainalysis acquired Alterya, a tech company specializing in the use of artificial intelligence (AI) to identify fraud, for an estimated sum of $150 million.
In a separate blog post, Chainalysis verified the information, yet specific financial particulars remained undisclosed.
According to Chainalysis, this acquisition enables them to offer immediate, proactive anti-fraud measures for transactions and more effective fraud detection during the customer identification phase, particularly for digital asset exchanges, blockchain platforms, and digital wallet services.
Although less well-known in the world of cryptocurrency, Alterya boasts partnerships with established giants such as Coinbase and Binance. As per reports from Chainalysis, it is said to oversee transactions worth over $8 billion monthly across both crypto and traditional banking systems, with a focus on identifying and thwarting the rising issue of “authorized fraud.
This transaction represents the second significant acquisition for Chainalysis within just a month’s time, following their announcement of acquiring the Web3 security platform Hexagate on December 19th. The specifics regarding the financial aspects of the deal remain undisclosed.
Generative AI makes fraud “more scalable”
In simpler terms, Chainalysis referred to fraud and deceit as a persistent problem plaguing the financial sector, with these issues also affecting the realm of cryptocurrency. As per a report by CryptoMoon, losses from hacks and scams in the crypto world amounted to an astounding $3 billion in the year 2024.
The emergence of Generative AI, which is a form of artificial intelligence capable of producing fresh content using machine learning, has significantly increased the ease and cost-effectiveness with which fraud can be carried out, as pointed out by Chainalysis.
Based on information from the U.S. Federal Bureau of Investigation (FBI), con artists are exploiting advanced artificial intelligence technology to focus their deceitful activities on cryptocurrency investment opportunities.
The FBI has issued a warning stating that crooks create material for deceptive cryptocurrency investment sites, as well as other types of investment scams.
On a wider perspective, it’s projected that the integration of generative AI and deepfakes could potentially result in economic losses amounting to approximately $40 billion in the United States by the year 2027, as suggested by Deloitte’s Center for Financial Services.
According to Deloitte, the underground market on the dark web abounds with companies offering deepfake and various other AI-powered fraudulent software for approximately $20,000.
Deloitte stated that the spread of malicious software among a wider population is weakening many existing anti-fraud measures.
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2025-01-13 19:11