Blockchain Analytics Cracks Down on Crypto Scams
Blockchain analytics has become essential for risk management and compliance in the financial sector. With the rise of decentralized finance (DeFi) and the increasing complexity of transactions, traditional methods are no longer sufficient.
According to Chainalysis, almost half of organizations onboarded in 2026 had alert standards that would have placed them in the top 10% of alert strictness in 2020. This highlights the need for more advanced analytics tools that can identify indirect exposure and wallet relationships.
The use of AI in fraud detection has also become crucial, with Chainalysis estimating that crypto scams and fraud caused around $17 billion in losses during 2025. The average scam payment rose from $782 in 2024 to $2,764 in 2025, a 253% increase. Impersonation scams grew more than 1,400% year over year.
DeFi adds another layer of complexity with its use of smart contracts, decentralized exchanges, and bridges. This creates transaction paths that are difficult to assess through basic wallet screening, making graph analysis and entity-level intelligence essential for effective compliance.