Australian cryptocurrency exchange Blockbid has teamed up with risk management giant LexisNexis to increase security measures. The tie-up will introduce Know Your Customer (KYC) services and fraud prevention security on Blockbid making it the first exchange dealing in digital currencies to use such updated security solutions.
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Blockbid Increases Security To Stop Illicit Activities
Lately, many illicit crimes related to virtual currency trading have come to the fore. As a result, Indonesia for example has declared crypto assets as void means of making payment. Similar to Indonesia many other countries believe that the technology somehow can be easily used for carrying out illegal activities such as money laundering, human trafficking or funding terrorist groups. Most of this is code for tax evasion.
As a result, Blockbid has decided to enhance security measures on its platform by signing up with LexisNexis. Reports indicate that the Melbourne-based cryptocurrency exchange is one of the first trading platforms that have taken measures to fulfill global anti-money laundering (AML) regulations, which basically means governments want to know where money is going so they can get their taxes.
The Senior Vice President of US commercial markets and global market development at LexisNexis Risk Solutions, Thomas C. Brown, has stated that the “Trade with Confidence” system employed by his company uses the same tools of regulations as used by the major banks. Hence, he believes that it will increase the confidence of the public on the Blockbid exchange. Currently, the risk management company has one more data set at its disposal apart from its own set, after acquiring the cybersecurity firm ThreatMetrix in February this year.
Security Network To Identify Suspicious Behavior
According to ThreatMetrix’s Alisdair Faulkner, their Digital Identity Network carries out the collection and processing of millions of daily consumer interactions taking place during logins, payments and new account applications. Faulkner said, “Suspicious behavior can be detected and flagged for review, step-up authentication or rejection before a transaction is processed, creating a low-friction experience for trusted users.”
The technology from LexisNexis will enable the new exchange to verify users’ identities using both physical and digital identity data and will flag high-risk customers whenever they try to sign up. The system will also analyze connections on the basis of different parameters including devices, identity, locations, and threat intelligence. It will combine this complete information to analyze the behavior of the user and try to identify and stop high-risk transactions in real time.
