Payment Transaction Monitoring: A Strong Method to Counter Cryptocurrency Fraud

Payment Transaction Monitoring:
Analysis and statistic online services

The arrival of cryptocurrency has created convenience for individual customers and businesses. But it has also attracted a number of cybercriminals for financial benefits. According to the reports, $3.2 billion worth of cryptocurrency theft occurred in 2020. It is expected to rise in the future. Shufti Pro solutions experts have introduced a payment transaction monitoring system that can facilitate clients in reducing financial fraud. It also adheres to cryptocurrency transaction monitoring guidelines. It is a progressive approach that efficiently elevates customer experience and detects suspicious financial exchanges. It is AML/CFT regulation compliance that protects the companies from hefty financial charges.

Digital Currencies and the Elevating Cases of Financial Fraud

Cryptocurrencies are digital assets of a client that have created new opportunities for financial institutions. It has also changed the ways how global watchdogs deal with KYC AML regulations violations and terrorism financing. 

Global watchdogs have noticed a great threat in cryptocurrencies because fraudsters can engage in illicit transactions through them. As per a recent survey, 79% of financial transactions in digital currencies were illegal exchanges. To combat the issue, they have introduced new standards to support cryptocurrency service providers in fraud prevention.

It should be clear that the payment transaction monitoring system comes under AML security protocols. It proficiently facilitates combating money laundering cases, as per Victor Fredung. Cybercriminals have several methods under their sleeves. For example, they can hide their true identities and then transfer their funds to multiple accounts. In this way, they can hide the origin of their funds. Additionally, cryptocurrency service providers must upgrade their AML-based payment transaction monitoring systems to combat money laundering cases across the globe proficiently. It is important that they adhere to the latest AML guidelines to safeguard themselves against the accusations and financial fines from international regulatory bodies. 

Red Flags from FATF: Payment Transaction Monitoring System and Crypto Money Laundering Cases

The Financial Action Task Force (FATF) introduced some guidelines regarding crypto-money laundering cases in 2020. They were derived from internal investigations and comprehensive case studies. Moreover, the global regulatory bodies highlighted some red flags to upgrade their payment transaction monitoring system. This is critical in order to deal with the modern time challenges. Some of the red flags are the following:

  • Financial Transaction Pattern: It means that the client engages in frequent financial transactions in a short period of time. In another form, the client does rapid financial exchanges in their fresh bank account. 
  • Geographical Hazards: this type of risk is present in transactions that happen cross-border in high-risk nations. 
  • Highly Organized Transactions: These are the types of exchanges that are structured in a way that they do not cross the threshold of suspicious activity. 
  • Anonymous Financial Exchanges: Cybercriminals take advantage of online anonymity and use privacy coins to perform unlicensed financial exchanges. They can even use the same ID address to shift money between different crypto-wallets. 
  • Poor Customer Due diligence (CDD): Hackers do not give sufficient information about their digital accounts to avoid identification. The financial exchanges from these kinds of accounts are a huge red flag. 
  • Money Muling: Cybercriminals can target vulnerable individuals on the internet to force them to transfer their money to different accounts. Fraudsters take advantage of their naivety for their malicious goals. 

How Smart Technology can Help in Designing an Efficient Payment Transaction Monitoring System?

Payment Transaction monitoring in digital currencies is about collecting and analyzing huge volumes of data that are above human capacities. Nonetheless, for efficient maintenance and data processing the online service providers must integrate the latest verification procedures to make the payment transaction monitoring system convenient and secure. The good news is that modern-day companies realize the importance of investing in advanced security protocols and authentication systems. 

Payment Transaction Monitoring System: Why Ongoing Monitoring is a Compulsory?

The online cryptocurrency service providers must integrate AML monitoring solutions in their security measures systems. It will help them monitor clients’ behavioural patterns against global sanction lists and PEP lists. It ensures that only genuine clients enter the database of the companies and their sensitive data is safe from bad actors. Additionally, businesses should conduct their security screening procedures on a regular basis so that no fraud gets unnoticed. 

Wrapping Up

In a nutshell, AML and PTMS (Payment Transaction Monitoring System) solutions have become critical in these modern times, as per Shahid Hanif. They play a critical role in combating financial fraud and anonymity linked with cryptocurrencies. The latest system ensures compliance with AML/CFT guidelines and also verifies the identities of the customers. In such a manner, Shufti Pro services are maintaining high transparency levels as much as possible. The payment transaction monitoring service is a compatible option for all crypto-oriented businesses because it cross-checks customer profiles against global watchdog lists in a few seconds with high accuracy.


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