Integrated in the crypto transaction screening and monitoring software, Risk Indicators enable the analysis of risk scenarios for Bitcoin, Ethereum, XRP Ledger, Litecoin, Dash, Bitcoin Cash and more than 250,000+ ERC20 tokens. 

This significant update allows users to tailor Risk Indicators among several risk categories (e.g. entity type, entity country, transaction behavior pattern). It has been designed for better risk identification and measurement according to users’ level of risk appetite. 

Since 2015 the company provides Risk Scoring at a level of wallet, address and transaction with the analysis of the source and destination of funds. Now, Risk Indicators also provide specific red flags for activity that customers consider as risky.  Risk Scoring and Risk Indicators complete each other for a better risk identification and management. 

What are “Scorechain Risk Indicators”? 

Risk Indicators help crypto-related businesses to mitigate their crypto AML and compliance risk.  

Risk Indicators are able to red flag activity that compliance teams consider as suspicious when performing risk analysis. By modeling and measuring their risks, Scorechain users can avoid being involved with risky transactions or illicit coins.   

As a first step, Risk Indicators focus on the entity type (such as wallets known as ransomware, darkweb marketplace, scam, exchange, etc.), entity country of registration, and on some transaction patterns (peeling chain, mixing, etc.). 

Risk indicators are evaluated for all the public blockchains monitored by Scorechain including Bitcoin, Ethereum, XRP Ledger, Litecoin, Dash, Bitcoin Cash and on 250,000+ ERC20 tokens stablecoins covered. 

How companies can integrate Risk Indicators to their Risk Management plan? 

Risk Indicators feature has been designed to facilitate the compliance teams’ work. This functionality is easy to configure and the result is displayed in the user interface as well as in the API. 

‘This new feature enables businesses involved in the crypto space to define their own level of risk appetite and tailor their internal control framework accordingly. Each company’s internal control framework is unique and Scorechain made risk indicators customization unique as well‘, said Pierre Gerard, Scorechain CEO.  

Indeed, users can configure different categories of Risk Indicators (type, country, behaviour) according to their internal rules. They can also assign limits to these Risk indicators in order to identify suspicious transactions and measure the level of risk involved.  

Once the configured criteria are met, Scorechain platform displays red flags at a level of the address, wallet and transaction. Besides, it goes beyond just redflag, it also provides detailed information to understand and document how the monitored coins are connected with the risks. 

Finally, Risk Indicators are fully integrated in Know-Your-Transaction Reports (KYT). It means Scorechain users can download PDF reports in seconds with transaction scoring for incoming and outgoing funds as well as red-flagged Risk Indicators and configuration list. It greatly facilitates the reporting process. 

‘Having Risk Indicators’ information downloadable is essential for our customer risk treatment and so it is for their compliance reporting. Alongside risk scoring, our users can now gain even more time during risk analysis and they love it‘, said Lisa Boussard, Head of Marketing. 

Why are Risk Indicators critical for compliance?

Scorechain cryptocurrency transaction monitoring software, already had risk scoring to give a level of trust for addresses, wallets and transactions based on source and destination of funds. With Risk Indicators feature, the software consolidates its leadership among blockchain analytics software when it comes to risk management. It also reinforced its capabilities to deliver features to help companies to comply with new regulation standards in a risk-based approach implementation.  

Scorechain users are now alerted and get details on specific risks they have configured. It enables them to quickly identify risky schemes depending on their risk tolerance. 

It is the best and easiest way to make sure to watch in real-time the suspicious and illicit activities and prevent fraud. Besides, the company reinforced and improved its risk assessment methodology lately. 

Scorechain Blockchain analytics product is always improving to better serve worldwide crypto-related businesses for crypto AML compliance.