AI-Powered Crypto Fraud Detection: Secure Your Assets, Ensure Compliance.
Go beyond basic security. Our solutions detect and prevent crypto-specific threats—from transaction laundering to smart contract exploits—that traditional systems miss.
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The New Frontier of Financial Crime
The rapid innovation in cryptocurrency and DeFi has created enormous opportunities, but it has also opened the door to a new generation of sophisticated financial crime. Traditional fraud detection systems, built for centralized finance, are blind to the unique attack vectors of the blockchain world. Irreversible transactions, anonymous actors, and complex smart contract logic create a high-stakes environment where a single vulnerability can lead to catastrophic losses. Protecting your platform, your users, and your reputation requires a new class of security built specifically for the on-chain economy. We provide that security.
Crypto-Native Expertise
We live and breathe blockchain. Our team understands the nuances of crypto fraud, from DeFi exploits to NFT wash trading, that generic security firms miss. We don't just adapt old methods; we build new ones for the on-chain world.
AI-Driven Precision
Our machine learning models analyze billions of data points across multiple chains to detect suspicious patterns in real-time. This AI-powered approach minimizes false positives, protecting your users without creating unnecessary friction.
Real-Time Threat Intelligence
The threat landscape changes by the minute. Our systems are continuously updated with the latest on-chain and off-chain intelligence, ensuring you're protected against emerging scams, vulnerabilities, and sanctioned entities.
Full-Spectrum Coverage
From pre-launch smart contract audits to post-launch transaction monitoring and incident response, we offer an end-to-end security partnership. We cover your entire operational lifecycle, not just a single point of failure.
Regulatory Compliance Focus
Navigating the complex web of global AML/CFT regulations is critical. Our solutions are designed to help you meet and exceed compliance standards like the FATF Travel Rule, keeping you on the right side of regulators.
Scalable Integration
Whether you need a simple API for risk scoring or a fully managed compliance-as-a-service platform, our solutions are built to integrate seamlessly and scale with your growth, regardless of transaction volume.
Proven ROI
The cost of a single security breach or compliance failure can be devastating. Our services provide a clear return on investment by preventing direct financial losses, avoiding regulatory fines, and preserving customer trust.
Expert Human Oversight
AI is powerful, but it's not everything. Our team of world-class blockchain analysts and security researchers provides an essential layer of human expertise to investigate complex alerts and stay ahead of adversarial tactics.
Proactive Defense
We don't just react to fraud; we help you prevent it. Through proactive threat hunting, smart contract audits, and dApp security assessments, we identify and neutralize vulnerabilities before they can be exploited.
Our Comprehensive Fraud Detection Services
We provide a multi-layered defense system tailored to the unique risks of the digital asset ecosystem. Our services cover everything from real-time transaction analysis to deep-dive forensic investigations, ensuring your platform remains secure, compliant, and trusted.
Real-Time On-Chain Transaction Monitoring
Our core service continuously analyzes blockchain transactions for signs of illicit activity. We use proprietary AI models to trace the flow of funds and identify high-risk behaviors as they happen.
- Identify Suspicious Patterns: Detect structuring, tumbling/mixing, and other money laundering techniques in real-time.
- Trace Illicit Funds: Follow the flow of funds from hacks, scams, and other criminal activities to prevent them from contaminating your platform.
- Risk-Score Wallets: Assign dynamic risk scores to addresses based on their transaction history and exposure to high-risk counterparties.
AML/CFT Compliance Solutions
Stay ahead of regulatory requirements with our comprehensive Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) suite. We help you build a robust compliance framework that satisfies regulators and builds trust.
- Sanctions Screening: Screen all transactions and wallets against global sanctions lists (e.g., OFAC) to block illicit actors automatically.
- FATF Travel Rule Compliance: Implement solutions to securely transmit required originator and beneficiary information for VASP-to-VASP transfers.
- Automated Reporting: Generate Suspicious Activity Reports (SARs) and other necessary documentation for regulatory filings.
Smart Contract & dApp Security
A significant portion of crypto fraud originates from vulnerabilities in code. We provide rigorous auditing and assessment services to secure your applications before and after deployment.
- Pre-Deployment Audits: Our experts conduct exhaustive manual and automated analysis of your smart contract code to find vulnerabilities like re-entrancy, integer overflows, and logic errors.
- dApp Penetration Testing: We simulate real-world attacks on your decentralized applications to identify weaknesses in your architecture, APIs, and user interfaces.
- Continuous Security Monitoring: After launch, we monitor your contracts for any unusual on-chain interactions that could signal an exploit in progress.
Advanced Threat Analytics & Forensics
When an incident occurs, or a new threat emerges, our elite team of analysts provides deep-dive investigations and intelligence to help you respond effectively and strengthen your defenses.
- Forensic Investigation & Reporting: In the event of a hack or scam, we provide detailed on-chain forensic analysis to trace stolen funds, identify attacker wallets, and provide evidence for law enforcement.
- DeFi Exploit Analysis: We specialize in dissecting complex DeFi attacks like flash loans and oracle manipulation to understand the root cause and prevent recurrence.
- Custom Threat Intelligence Feeds: Receive curated, actionable intelligence on new scams, malware, and high-risk entities relevant to your specific business, delivered via API.
Success Stories: From Theory to Tangible Results
We don't just talk about security; we deliver it. Our solutions have helped leading crypto platforms protect billions in assets, achieve regulatory compliance, and build safer ecosystems for their users. Explore how we've tackled real-world challenges.
The Challenge
The client's protocol, while innovative, had complex logic for calculating collateral value from multiple price oracles. They were concerned about potential economic exploits, specifically flash loan attacks that could manipulate oracle prices and drain the protocol's liquidity pools.
Key Challenges:
- Detecting and mitigating price oracle manipulation within a single transaction.
- Ensuring the security of newly integrated, less liquid assets.
- Maintaining protocol uptime and user confidence during security upgrades.
- Differentiating between legitimate arbitrage and malicious economic attacks.
Our Solution
We implemented a two-pronged strategy. First, our smart contract audit team conducted a deep analysis of the protocol's price calculation logic. Second, we deployed our real-time monitoring solution to watch for on-chain indicators of an impending flash loan attack.
- Identified Critical Vulnerability: Our audit uncovered a flaw where a flash loan could be used to manipulate the price of a low-liquidity asset on a DEX, which the protocol's oracle would then use to value collateral, allowing the attacker to borrow far more than they should.
- Implemented Circuit Breakers: We helped the client code and implement time-weighted average price (TWAP) oracles and circuit breakers that would pause protocol functions if a sudden, drastic price change was detected.
- Real-Time Alerting: Our monitoring system was configured to send instant alerts if a transaction involved a large flash loan, a swap on a low-liquidity pair, and an interaction with the client's protocol all within the same block.
- Incident Response Plan: We developed a joint incident response plan, outlining the exact steps to take if a credible threat was detected, including pausing contracts and notifying the community.
The Challenge
The client's existing transaction monitoring system was generating a high volume of false positive alerts, overwhelming their small compliance team. As they prepared to enter the EU, they needed a more sophisticated solution to meet MiCA and FATF Travel Rule requirements without hiring a massive new team.
Key Challenges:
- High rate of false positives leading to operational inefficiency.
- Inability to trace funds through mixers and privacy coins.
- Lack of an integrated solution for sanctions screening and travel rule compliance.
- Difficulty in building a dynamic risk profile for users.
Our Solution
We deployed our integrated AML & Compliance-as-a-Service platform. The solution leveraged AI to provide more accurate risk assessments and automated many of the manual tasks the client's team was struggling with.
- AI-Powered Risk Scoring: Our system analyzed user behavior and on-chain data to create a dynamic risk score, focusing alerts on genuinely high-risk activity rather than simple threshold breaches.
- Advanced Blockchain Analytics: We provided tools that could trace funds through complex laundering schemes, including chain-hopping and mixer usage, providing clear visualizations for investigators.
- Integrated Compliance Tools: We integrated real-time OFAC sanctions screening at the point of deposit and withdrawal, and provided a ready-to-deploy Travel Rule solution.
- Automated Case Management: The platform automatically compiled relevant data for each alert into a single case file, drastically reducing the time compliance officers spent gathering information before making a decision.
The Challenge
The client's marketplace was being targeted by users creating multiple wallets to trade NFTs back and forth among themselves. This "wash trading" artificially inflated the price and trading volume of collections, misleading genuine buyers and manipulating royalty payouts.
Key Challenges:
- Distinguishing wash trading from legitimate "flipping" activity.
- Identifying networks of colluding wallets controlled by a single entity.
- The high volume of transactions made manual review impossible.
- Taking enforcement action without penalizing innocent users.
Our Solution
We developed a custom machine learning model specifically trained to detect NFT wash trading patterns. The solution was delivered via an API that the client integrated into their trust and safety dashboard.
- Network Graph Analysis: Our model didn't just look at individual trades. It constructed a graph of all interactions on the platform, identifying clusters of wallets that exclusively traded with each other in circular patterns.
- Behavioral Fingerprinting: We analyzed on-chain behaviors, such as wallets being funded from the same source or executing trades in rapid, automated succession, to link seemingly separate accounts to a single actor.
- Wash Trade Scoring API: We provided a simple API endpoint where the client could send a wallet address or transaction hash and receive a score from 0-100 indicating the probability of wash trading involvement.
- Actionable Intelligence: The API response included not just the score but also the evidence, such as the list of other wallets in the suspected wash trading ring, allowing the client's team to take precise, data-driven action.
Technology & Tools We Master
Our effectiveness comes from combining deep human expertise with a cutting-edge technology stack. We leverage the best in AI, blockchain analytics, and cloud infrastructure to deliver powerful, scalable, and reliable fraud detection solutions.
What Our Clients Say
Trust is earned, not given. We're proud to be the trusted security partner for a diverse range of companies in the crypto space, from innovative startups to established exchanges.
"Errna's AML platform transformed our compliance workflow. The AI-driven alerts are incredibly accurate, cutting down false positives by over 70% and allowing my team to focus on real risks. We passed our last regulatory audit with flying colors."
"As a DeFi founder, security is everything. The pre-launch smart contract audit from Errna was the most thorough analysis of our code we've ever seen. They found a subtle but critical vulnerability that could have been catastrophic. They are true experts."
"Wash trading was a plague on our NFT marketplace. Errna's custom-built detection model gave us the tools to surgically remove these bad actors, restoring faith in our volume metrics and protecting genuine collectors. Their data science team is second to none."
"We needed a partner who could provide both automated monitoring and expert-led forensics. After a minor incident, Errna's incident response team was able to trace the stolen funds and provide a detailed report within 24 hours that was instrumental for law enforcement."
"Integrating Errna's risk-scoring API was surprisingly simple. We now have real-time risk assessments for every deposit, allowing us to apply enhanced due diligence to high-risk transactions without adding friction for the vast majority of our users."
"The threat intelligence feeds are invaluable. We get actionable alerts on new phishing campaigns and sanctioned addresses before they become a widespread problem, allowing us to proactively update our blocklists and protect our users."
Frequently Asked Questions
Clear answers to common questions about implementing crypto fraud detection and compliance solutions.
While the underlying blockchain ledger is immutable and cryptographically secure, the applications, smart contracts, and user interactions built on top of it are not. Fraud happens at this application layer. Our services detect fraudulent transaction patterns, compromised wallets, and vulnerable smart contract code—risks that exist on top of the secure blockchain protocol itself.
Traditional systems are designed for a world of reversible transactions and centralized identity. Crypto fraud involves irreversible payments, pseudonymity, and unique attack vectors like flash loans, rug pulls, and smart contract exploits. Our solutions are purpose-built to analyze on-chain data and understand these crypto-native threats, which traditional systems are completely blind to.
Integration time varies based on the service. Our API-based solutions for wallet and transaction risk scoring can often be integrated in a matter of days. A full deployment of our managed Compliance-as-a-Service platform might take a few weeks to fully configure to your specific workflows. We prioritize a fast and efficient onboarding process.
Our primary goal is to be precise and minimize friction. By using AI to analyze a wide range of behavioral and on-chain data, we achieve a very low false-positive rate. This means we can flag and challenge genuinely high-risk transactions without disrupting the seamless experience for the vast majority of your legitimate users.
We support all major blockchains, including Bitcoin, Ethereum, and all EVM-compatible chains (like Polygon, Avalanche, BNB Chain), as well as other leading L1s like Solana and Cosmos. Our architecture is designed to be chain-agnostic, and we are constantly adding support for new networks based on client needs and market trends.
Our defense is dynamic, not static. It's a combination of three key elements: 1) Our AI models are continuously retrained on the latest on-chain data to learn new fraud patterns. 2) We ingest a wide array of off-chain threat intelligence from forums, social media, and security feeds. 3) Our team of human analysts actively investigates new exploits and scams, feeding their findings back into our systems. This hybrid AI + human approach keeps us at the forefront of threat detection.
Ready to Secure Your Crypto Operations?
The threat is real, but you don't have to face it alone. Let our experts show you how our AI-powered solutions can protect your assets, ensure compliance, and build a more trusted platform. Schedule a free, no-obligation consultation today.