The following is commentary from Michal “Mehow” Pospieszalski, CEO of MatterFi.
MatterFi is a security-focused, foundational layer for financial services to build into the crypto ecosystem, giving those organizations access to all the key services they will need to enable them to quickly build compliant, secure and trusted services. MatterFi is building a future where any asset can go digital, unlocking the enormous potential of consumer and institutional finance.
The increased prevalence of sophisticated fraud activity is a top concern for the Web3 sector. In 2023, cryptocurrency fraud amounted to $2 billion, with approximately $300 million lost to phishing scams. Scammers acquired a significant portion of this data through SMS spoofing and by tricking users into revealing sensitive information via malicious links sent in text messages.
Smishing, a term that combines “SMS” and “phishing,” is an evolving and nuanced cybersecurity threat that poses a significant challenge to the crypto sector. Smishing involves cybercriminals sending fraudulent text messages to individuals, often impersonating legitimate organizations, tricking customers with a precise and familiar tone of voice. These messages contain links to malicious websites or request sensitive information, aiming to deceive recipients into disclosing personal or financial data. As cybercriminals deploy more sophisticated tactics, the importance of curtailing nefarious activity and upholding the highest standards of cybersecurity across the Web3 space has never been more pronounced.
Acknowledging this innovation chasm, MatterFi, the fintech infrastructure that is making finance more secure for humans and AI, recently launched a bespoke automated solution that reduces fraud, theft, hacking and other security concerns while providing full transparency to transacting parties.
MatterFi’s AI agent is highly resilient to fraud due to MatterFi’s decentralized Send-to-Name system, which is fully AML/KYC compliant on every chain, token, and asset, both on-chain and in custody. MatterFi’s AI product prevents hacking, phishing, SIM swaps, money laundering, and custody and exchange thefts with end-to-end cryptographic proofs without the need for passwords and logins. The MatterFi system allows humans and AI agents full transparency between transacting parties while keeping those transactions private from third parties. The MatterFi agent is part of MatterFi’s chain-agnostic system, which offers an easy-to-use experience where the user does not have to understand crypto or blockchain, akin to Revolut or PayPal. Decentralized identities are available for all transactions, usernames, and AI agents.
Just as a sophisticated security system detects even the faintest anomalies to protect a building, our AI agent continually watches for fraudulent activity across the complex landscape of digital finance. This is about more than blocking entry—it’s about enabling trust by providing full transparency between transacting parties while keeping interactions private. With our decentralized Send-to-Name system, it’s like having a unique, secure identity key that unlocks finance without exposing personal details. We envision a world where financial freedom is paired with ironclad security, empowering users and financial organizations to transact with confidence and compliance on a global scale.