Scorechain Launches AI to Enhance Cryptocurrency Fraud Detection
Scorechain, a company specializing in crypto-tracking and risk management, has introduced a new artificial intelligence (AI) tool designed to detect fraudulent patterns in cryptocurrency transactions. This AI feature is integrated into the firm's Anti-Money Laundering software, aiming to enhance the accuracy of risk assessments for cryptocurrency activities. The tool, named Scorechain Artificial Intelligence (SCai), predicts the type of service associated with groups of blockchain addresses.
During its validation phase, SCai demonstrated over 92% accuracy in identifying entity types related to darkweb marketplaces, gambling, mixing, and exchange platforms. The AI is built on a machine learning prediction model and has been trained using academic research and Scorechain's labeled data. It analyzes more than 90 attributes to assess transaction patterns and service behaviors across over 120 million addresses.
Pierre Gérard, CEO of Scorechain, highlighted the significance of the AI's capabilities. He noted that the tool has already identified five million addresses linked to darkweb marketplaces, with remarkably low false positives. Gérard emphasized that expanding blockchain naming coverage and improving risk-based approaches are top priorities for their clients.