Case study

Crypto Platform Deploys SEON Custom Velocity Rules to Block Money Launderers and Cut Down Fraud by 60%

About Coincash

Coincash is building a world where anyone can buy, sell, and use cryptocurrencies as easily as possible. Their exchange platform, which simplifies crypto trading, is now a major player in the Hungarian crypto market, offering more than 50 types of coins and tokens. The company also manages the largest cryptocurrency ATM network in the country, and continues expanding its operations with vigorous growth.

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.

Profile picture
Gabor Galantai
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.”

Fighting Fraud, and Understanding It Better

It was like getting a magnifying glass to reveal much more about our users while cutting manual reviews by 90%.

The results of using SEON to automate KYC? A crypto platform that runs 24/7, safe in the knowledge that it won’t be penalised for accidentally allowing criminals in, as Coincash uses real-time data enrichment on top of existing KYC checks:

  • Reduced manual reviews by 90%
  • Saved 50% work hours for the risk team
  • Cut down fraud volume by 60%
  • Increased multi accounting detection by 60%
  • Increased IP-related issues detection by 80%
  • 20% better efficiency when managing transactions

Best of all, they are now safe in the knowledge that money launderers can’t use their platform. SEON helped identify hundreds of cases pointing to stolen bank accounts, which would have cost the company millions in fines if they had gone through.

“Deploying SEON not only made our KYC process smoother and more efficient, it also boosted the confidence in our fraud prevention efforts,” Gabor says. “We can now do a much better job by supervising the automated system, rather than feeling overwhelmed with manual reviews.”

CoinCash now learns from SEON’s insights and support team in order to have complete control over their risk rules. “The results will keep on helping us in the future,” Gabor concludes. “Deploying SEON was like getting a magnifying glass to reveal much more about our users than we previously could, while cutting manual reviews by 90%.”

To see how SEON can help your organization reduce fraud, check out our products.

 

Reduced manual reviews by

90%

Increased multi accounting detection by

60%