Introducing FailSafe Radar™: Fraud Detection and Internal Risk Scoring

FailSafe has expanded its capabilities to include fraud detection and internal risk scoring. This latest feature enables rapid detection of fraudulent addresses via on-chain monitoring, off-chain data collection, and third-party data collection.

Fraud Detection and Internal Risk Scoring with FailSafe

‘FailSafe Radar’ is a fraud and internal risk scoring systems that employs address screening and asset movement graphs to determine the risk of fraudulent activity associated with a wallet. Adapting FailSafe’s modular approach to the process of fraud risk detection, this tool is composed of two primary features, namely the address screening tool and the asset movement graph cluster.

Address Screening

FailSafe checks if an address might be involved in fraud by looking it up in our database of known fraudulent accounts. This database is constantly updated using several methods: monitoring blockchain transactions in real-time for suspicious activity like phishing or scams, gathering information from online sources like Reddit, Twitter, and the dark web, and it using data from blockchain intelligence partners and law enforcement.

From this data, FailSafe calculates a risk score for each address based on how often and how seriously it’s been flagged for suspicious behavior. Addresses are then sorted into categories and assigned labels. These labels make it easier to quickly see what kind of risk an address might pose, helping users understand and react to potential threats more effectively.

Asset Movement Graph Cluster

FailSafe expands its search for high-risk entities by examining the connections between wallet addresses. It creates an asset movement graph for each address by looking at their transactions and using risk indicators like when the account was made, when transactions occurred, and how much was moved. This helps reveal patterns that could show links to scammers, money launderers, sybil attackers and other bad actors who often use multiple wallets to hide their activities but eventually move their assets to a main wallet.

This method is great at finding this main “master node” or root address, where bad actors collect their funds. Once these connections are mapped out, the addresses are analyzed further to check for any signs of malicious activities. If any address in this network is found to be high-risk, FailSafe notes how close it is to the original wallet and includes this in the final risk score. This helps understand how likely it is that the original address is involved in suspicious activities based on its network.

FailSafe’s modular approach to blockchain security is designed to allow developers, enterprises, and individual users protect their crypto assets in worst-case scenarios.

Start using FailSafe to improve your crypto wallet security today.