December 05, 2023

Combatting Fraud in Crypto and Fintech Industry

44 minutes

When Tommy Nicholas (CEO of Alloy) wrote a blog titled, Your Fraud Model Is Broken, you had to know he and Ian Andrews (CMO, Chainalysis) were going to have a fun and insightful conversation.

In this episode, Tommy discusses how early NFTs and Bitcoin transaction speed got him interested in the space and years later his company Alloy is now servicing Fintechs, Crypto and TradFi companies managing their compliance, AML, credit, and fraud risk.

He explains the broken fraud model and the need for a shift in approach to focus on the person rather than just the transaction. He emphasizes the importance of transparency and accountability by regulators in the industry and the burdensome requirements placed on the private sector.

Tommy also breaks down Alloy's Annual State of Compliance Benchmark Report 2023 and how automation and even AI can support compliance teams in any industry.

Minute-by-minute episode breakdown

(2:10) - Alloy's role in managing wide variety of risks for companies dealing with money

(5:08) - Alloy as an operating system for risk management instead of just another risk solution

(7:23) - The frustration behind the blog "Your Fraud Model is Broken"

(14:33) - The burden and costs of money laundering controls on the private sector

(18:27) - The inefficiency of processing suspicious activity reports

(22:56) - Threat actors taking advantage of online onboarding

(30:03) - How Alloy got into the crypto industry and fraudulent practices they have identified

(33:13) - Involvement in the NFT community and the potential of digital collectibles

Related resources

Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.

Website: Stop fraud, stay compliant, and solve your identity risk problem

Report: Alloy's Annual State of Compliance Benchmark Report 2023

Article: Your fraud model is broken

Blog: Banks have a friction challenge

Blog:: How an SDK can help companies catch more fraud

Report: The Chainalysis 2023 Geography of Cryptocurrency Report (Available Now)

Event: Chainalysis Links Conference NYC 2024 (Apr. 9-10, 2024) - Early Bird Pricing On Now!

Video: De Grandpré Chait navigates crypto tax challenges for clients

YouTube: Chainalysis YouTube page

Twitter: Chainalysis Twitter: Building trust in blockchain

Tik Tok: Building trust in #blockchains among people, businesses, and governments.

Telegram: Chainalysis on Telegram

Speakers on today’s episode

Ian Andrews * Host * (Chief Marketing Officer, Chainalysis)

Tommy Nicholas (CEO, Alloy)

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