Nexo Bolsters Fraud Prevention with Sift Partnership

By integrating Sift’s AI-powered solutions, Nexo aims to enhance security, optimize transactions, and access Sift’s Global Data Network.

A partnership between digital asset company Nexo and Sift has been announced to enhance Sift’s fraud prevention mechanisms.

It is anticipated that the collaboration between the two entities will optimize and fortify the user experience for Nexo’s more than six million customers worldwide.

By incorporating Sift’s solutions for payment protection and account defense, the company aims to enhance the resilience of its platform against a diverse range of fraudulent threats.

Powered by machine learning and artificial intelligence (AI), these tools aim to increase transaction efficiency and security while decreasing the risk of account takeovers.

The most recent action is an element of Nexo’s overarching strategy to optimize operational efficiency and reduce financial losses resulting from fraudulent operations. The company is also granted access to Sift’s Global Data Network, which comprises data from the world’s leading cryptocurrency exchanges, through this partnership.

Nexo’s Strategic Focus on Fraud Detection Enhancement

According to the company, this access is expected to significantly improve the company’s capacity to identify and prevent fraudulent activities promptly, thus eliminating excessive obstacles for authorized users.

Savina Boncheva, the head of compliance at the company, said, “The synergistic partnership between Sift and Nexo demonstrates our unwavering commitment to a user-centric ethos, harmonized with comprehensive security and anti-fraud protocols.” 

Boncheva added:

“By harnessing Sift’s cutting-edge technology and comprehensive platform for managing digital risk, the company is equipped to adeptly prevent fraud while creating a streamlined experience for our users.”

According to Nexo, its objective is to enhance the precision and velocity of its fraud detection mechanisms. This, in turn, would foster a heightened level of confidence and trust among its users and the broader blockchain community.

This strategic choice is being implemented amid expanding regulatory scrutiny of the cryptocurrency industry.

In addition, this occurs in the wake of Nexo’s legal dispute with Bulgaria over a 2023 office search, in which the company sought $3 billion in damages. Sift is certain that the company will benefit substantially from the suite of fraud prevention tools it provides.

“Organized fraudsters pursuing financial gain are drawn to the cryptocurrency community,” Armen Najarian, chief marketing officer of Sift said.

“By utilizing our AI-driven risk decisioning platform and becoming members of Sift’s global data consortium, cryptocurrency exchanges such as Nexo can significantly mitigate fraudulent activities and enhance the user experience for authentic clients.