Fraud Rings and Crypto Scams: How to Outsmart the Bad Guys

Fraud networks are becoming more sophisticated, posing a significant threat to the financial, iGaming and crypto sectors. As fraudsters’ tactics evolve, these industries face growing challenges in identifying, disrupting, and preventing their activities.According to Sumsub internal research, every 100th user was involved in fraudulent networks in 2023. The need for robust fraud detection and prevention, from financial institutions to crypto exchanges and online gaming platforms, has never been greater. Understanding the inner workings of fraud networks and how they evolve, is not just crucial but empowering for protecting assets and customers.In this episode, Alvaro Garcia, Transaction Monitoring Technical Manager at Sumsub, speaks to Paulina Rios Maya, Head of Industry Relations at EM360, about how to Outsmart the Bad Guys.Key Takeaways:Fraud networks, or fraud rings, can vary in size and complexity.Money mules are often unaware they are part of fraudulent schemes.The iGaming industry is particularly vulnerable to bonus abuse.A multi-layered approach is essential for effective fraud prevention.Ongoing monitoring is crucial to catch fraud after onboarding.Chapters00:00 - Understanding Fraud Networks05:17 - Money Muling and Its Impact09:58 - Proactive Measures in Financial Sector13:43 - Navigating Risks in the Crypto Sector17:00 - Creative Tactics of Fraudsters19:50 - The Role of AI in Fraud Detection23:38 - Implementing a Multi-Layered Approach