3 ways top crypto companies are leveraging Prove’s technology to onboard new users in 10 seconds while also mitigating SIM swap fraud and other identity fraud.
Cryptocurrency fraud is at an all-time high, with the FBI recently reporting a 5x surge in SIM swap attacks and issuing a warning to crypto investors not to talk about their crypto online. At the same time, crypto forums are rife with complaints about slow onboarding times and confusing identity verification processes. And as fraud - including synthetic identities, SIM swap, and 2FA breaches - continues to increase, crypto exchanges are forced to make their security checks even more stringent, creating a frustrating cycle of increasingly cumbersome experiences for their customers.
But innovative cryptocurrency companies are learning and adapting, solving these two issues using advanced identity verification tools. Here are 3 methods crypto exchanges are employing to fight fraud and onboarding bottlenecks:
- Mitigate SIM swap fraud and synthetic identities using phone-centric signals: One simple way that crypto companies are thwarting SIM swap fraud is by simply checking the reputation of a phone number through a trust indicator such as Prove’s Trust Score before sending an SMS OTP. If the phone number’s reputation is low (indicating that a SIM swap may have occurred), the company can fall back to step-up authentication to prevent SIM swap fraud from occurring. Phone-centric identity signals can also be leveraged during account opening to detect and prevent synthetic identity fraud. In addition to top cryptocurrency exchanges, Prove’s technology is used by 8 of the top 10 banks.
- Eliminate antiquated utility bill/bank statement verification checks: Because regulations vary widely state-by-state, establishing proof-of-residence is often the first step for many crypto onboarding flows. Many companies still default to the old-school route of asking customers to dig up a utility bill or bank statement to prove their residence, but innovative crypto companies have adopted a faster and more seamless way to establish proof-of-residence and eliminate this step. Keep reading to learn how.
- Fast-track onboarding by auto-filling verified KYC-compliant data: To create a faster and more secure onboarding experience for new users, many crypto companies are turning to Prove Pre-Fill, which auto-fills forms with verified data to accelerate onboarding by 79%, enabling crypto exchanges to sign up new customers in as little as 10 seconds. Prove Pre-Fill’s checks also eliminate the need for utility bill/bank statement checks, reducing abandonment by 35% while also detecting and preventing synthetic identity fraud. Learn more about Prove Pre-Fill here.
For more information about how top crypto companies are using Prove’s phone-centric identity technology to fight fraud and accelerate onboarding, learn more at prove.com/industries/crypto.
© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.