Coincash’s Fraud Challenges
Money laundering is a huge risk in our vertical, so we must take great care to have the best KYC process in place to remain compliant and to ensure the safety of our business and users.
COO and founder
It’s no secret that dealing with crypto makes you a high target for fraudsters. And while CoinCash does not operate as a digital wallet, they still have to be extremely careful with who they allow on their platform.
The first kind of bad agents they constantly must flag: fraudsters who use stolen bank account details to make direct payments to their platform in order to purchase and trade cryptocurrencies.
But when it comes to regulations, the company also has to keep an eye on potential criminals, whose actions are under increasing scrutiny from governmental agencies, thanks in part to a new Hungarian law.
“Money laundering is a huge risk in our vertical,” says Gabor Galantai, Coincash COO and founder. “So we must take great care to have the best KYC process in place to remain compliant and to ensure the safety of our business and users.”
Unfortunately, their old KYC process required a lot of manual reviews to onboard new users safely. In fact, these were taking so much time, effort and resources, that they were hindering the company’s growth and eating into their profits.
SEON As an Extra Layer to Automate KYC
None of the companies we contacted offered as much freedom as SEON when it came to custom filters (…) and we immediately saw an 80% increase in detection relating to IP issues.
For Gabor and his team, the key goal was to automate their KYC checks. They began looking at several fraud prevention software before remembering that SEON, whose CEO also started in the Hungarian crypto scene, now offered fraud prevention tools.
“All the anti fraud tools we looked at could have helped to some extent,” Gabor says. “But none of the companies we contacted offered as much freedom as SEON when it came to custom filters”.
These custom filters and velocity rules were integrated via API into their platform to monitor every crypto trade and look for specific kinds of transactions and timeframes. The team is alerted in real-time via Slack, which ensures they remain compliant with the law, and keep an eye on potential money laundering.
“The best part of the integration was that it didn’t change anything for our users,” Gabor says. “We can check the user IP, device and uncover a lot of useful info thanks to the reverse email lookup module, all without adding any customer friction. In fact, we immediately saw an 80% increase in detection relating to IP issues, such as VPN or data center use.”