Sumsub, a full-cycle verification platform, unveiled its “State of Verification and Monitoring in the Crypto Industry 2023” report, shedding light on the pressing issue of new fraud patterns and schemes in the cryptocurrency sector.
With a staggering 77% of crypto companies reporting an encounter with novel fraud techniques this year, the industry finds itself at a critical juncture, necessitating robust verification practices and an in-depth understanding of the evolving fraud landscape.
Sumsub undertook an extensive survey involving more than 100 crypto companies, complemented by expert interviews from professionals within the field. In total, over 800,000 fraud attempts were meticulously analyzed for this report, with all data being aggregated and anonymized to ensure integrity and confidentiality.
A major highlight of the report is the spotlight on the alarming rise of sophisticated attack methods, with crypto companies witnessing more professional and complex fraud patterns than ever before.
This shift towards advanced fraudulent schemes underscores the critical need for the crypto industry to bolster its verification and monitoring practices, ensuring they remain one step ahead of malicious actors.
Jacob Sever, Co-founder and Chief Innovation Officer at Sumsub, emphasizes the industry’s ongoing evolution and the resultant need for expedited user onboarding processes. He said:
“From 2022 to 2023, we’ve observed a near halving of verification times across all regions, propelled by user demand for faster and more efficient processes. This places crypto firms in a challenging position, as they must navigate the tightrope of meeting user expectations while adhering to increasingly stringent regulatory requirements.
The report also highlights the gradual transition from document-based verification to Non-Doc Verification solutions within the crypto space, showcasing significant reductions in verification times and enhancing the overall user onboarding experience.