Xcoins Reduces Fraudulent Activity by 95%

About Xcoins

Xcoins is a leading cryptocurrency exchange platform, trusted by 250,000 satisfied customers worldwide. Their 15-minute onboarding guarantee and 24/7 support give them a tremendous advantage over the competition.

But like with any crypto business, fraudsters have taken notice – especially since the pandemic. This is the story of how Xcoins saw overall fraud costs spike up to $90K.

Challenge

Cryptocurrencies and fraudsters often go hand-in-hand. Fortunately, this was never a concern for Xcoins, a leading crypto exchange founded in 2016. Even with their impressive 15-minute transaction approval for buying coins via debit or credit card, their transaction fraud rate was incredibly low.

We had one of the highest rates of chargeback dispute wins in the industry, leaving us with an actual rate of 0.01%. But I started worrying when fraudsters began opening multiple accounts on our platform.

Marcela Podlesna, Fraud and Chargeback Analyst at Xcoins

Things became more challenging during the pandemic. Xcoins suffered damages due to a few multi-accounters. Fraud rates climbed up to $90K, and card networks moved the company to the early stages of their monitoring programme.

We found a user had multiple profiles on our platform. Some of the accounts looked good on paper, but we identified a connection and took them down. Our payment processors now regard Xcoins as one of the safest merchants in the industry.

Marcela Podlesna

Solution

They needed to take action. Luckily, a fellow CEO recommended SEON to Xcoins. After a quick test with Xcoins’ real data, the integration commenced. In less than two weeks, the system was up and running.

I tried SEON myself and then let the team go full speed with it. They immediately came back with custom rules regarding which ISPs or devices to look at. It was extremely intuitive.

A combination of device intelligence, IP analysis, cookie hashes and geolocation tools helped the Xcoins team immediately raise red flags to know which users were genuine and which were not.

By creating their own custom risk rules, the team has more control over which transactions end up in their manual review queue – which proved to be the ultimate tool they needed to spot multi-accounting.

Results

0.01% Chargebacks, Better Business

• $90K and how they reduced it by 95% thanks to SEON.
• 99% reduction in multi-accounting attempts

While the results speak for themselves, Marcela is quick to point out one of the key reasons that Xcoins can grow safely. SEON is able to help better understand who their customers are and how to identify fraudulent accounts.

As for future features, Xcoins looks forward to exploring SEON’s in-depth social media lookup capabilities.

You want the person buying from you to be real. With SEON, I can start with our own data and end up with a public social media profile. It’s really helpful.

For more information about Xcoins crypto exchange, visit xcoins.com.