Leading Fintech Platform Deploys Arkose Labs Solution to Protect its Crypto Exchange

Overview

This global financial services platform enables individuals, institutions and entrepreneurs across the globe to use, trade, invest and raise capital with open crypto technologies. With focus on inclusion, the company is delivering products and online services that are safe and easy-to-use.

The company has a global customer base and its crypto exchange deals in over 60 cryptocurrencies and provides numerous trading tools to enable its customers to access new opportunities like early listings of new projects, airdrops and forks. It even provides its customers with the facility to trade on-the-go through its app. Institution and high-volume traders can access onboarding support, large-scale trades, higher transaction limits, concierge service, tax reporting assistance and more.

The Business Problem

Cryptocurrencies, especially bitcoin, have become particularly popular among fraudsters. In many recent incidents of ransomware locking down municipal systems, fraudsters demanded bitcoins as ransom to unlock the government systems. Crypto exchanges have become destination for genuine customers and fraudsters alike looking to trade. As the popularity has grown, these exchanges have come under the scrutiny of regulations across the globe and are having to comply with increasing number of rulesets and guidelines. Since the company’s crypto exchange enables quick movement of money and instant transactions using cryptocurrencies, fraudsters found ample opportunities to exploit the exchange for monetary gains. The global growth of business, a host of options to create wealth, numerous cryptocurrencies to trade in, and the convenience of connecting card and bank accounts for crypto trading, opened the company’s exchange for fraud and online abuse.

Using stolen and/or fake customer details, automated bots, and sweatshops/click-farms, fraudsters perpetrated multiple attacks including new account origination, account takeover, payment fraud, and money laundering. Fraudsters also abused the dormant user accounts for fraud without getting detected. Due to increasing fraud and online abuse, the company suffered colossal financial losses. The company faced an increased risk of non-compliance as crypto transactions are highly regulated apart from customer dis-satisfaction due to disruption in user experience.

The Arkose Labs Solution

The Arkose Labs Fraud and Defense Platform was deployed to resolve the problems the company was facing. Within a few weeks of deployment, the company saw a 10% increase in good customer throughput without any increase in fraud. The solution successfully detected and stopped human-driven as well as automated attacks by enabling in-depth scrutiny of user log-in attempts. This significantly reduced the number of fraudsters trying to use stolen/fake credentials to create new fraudulent accounts and/or account takeover existing genuine accounts.

This was made possible by bankrupting the fraud model through enforcement challenges. While genuine users could easily pass these tests, fraudsters were forced to spend more time. Additionally, these adaptive stepped-up challenges required more investment in terms of resources, tools, and technology to clear them at scale. This reduced the returns from the attack and made it far-less attractive for the fraudsters.

The multi-level, integrated approach provides the company with continuous risk assessment that not only stops individual attacks but also delivers a long-term solution that reduces fraud and operational costs while delivering a seamless customer experience.