Let’s face it. Cryptocurrency fraud is a huge problem, and one that’s not likely to disappear anytime soon. In addition, it happens very often, and there are many people out there that are just getting sick and tired of hearing about it. That’s what makes companies like Wirex and Elliptic so attractive and important.
Putting a Full End to Crypto Fraud?
Wirex is a banking company that sets up personal cryptocurrency services for users. Elliptic is an anti-fraud and security company. The two ventures have joined hands to potentially develop “solutions for rapidly detecting fraud and other criminal activity.”
Fraudulent or malicious actors are not always easy to spot, and when they are, it’s usually because they’ve already committed their dastardly deeds. Look at Binance, for example. The platform was recently the victim of a $40 million+ crypto theft that left the company offline and in the gutter for several days. It was an ugly sight to see, but one that probably couldn’t have been avoided.
Binance commented that it wasn’t until they noticed unusual trading activity that they froze all transactions and went offline to figure out what the problem was. By then, the money was gone, and the company was licking a bruised ego. This is no way to run a business, but are there ways to detect fraudulent activity before it ever occurs?
That’s what Wirex and Elliptic are working on. In a statement, Pavel Matveev – the co-founder and chief executive officer of Wirex – comments:
We have entered a new age in which conventional regulated financial frameworks and the new token economy must coexist. By uniting the existing and future financial ecosystem, Wirex occupies a unique position in the industry. We believe that it is our duty to deliver innovation and choice to our customers whilst ensuring the security of their money and data.
To be true to the facts, both companies have been working together in one capacity or another for the past three years, but things seem to be taking a more serious turn. Both companies are working to deliver more security to customers’ digital wallets to ensure that their cryptocurrency assets are always safe.
To do this, Wirex is working on a system that will “red flag any wallet addresses” that are associated with illicit or illegal activity. This means that any address evaluations that turn up negative results will result in the subjected address being flagged and removed immediately, preventing theft from occurring in the early stages. Executives believe this is the best way to further legitimize cryptocurrencies and build a more trusting attitude amongst customers.
Time for Crypto to be Trustworthy
Elliptic co-founder and CEO James Smith explains:
Our new working arrangement with Wirex will play a significant role in helping cryptocurrency become more trusted and commonplace.