Increasing Fraud in Cryptocurrency and P2P Payments: How Off-Chain and On-Chain Data Can Help

With the rise of cryptocurrency payments and peer-to-peer (P2P) payment systems like PayPal, Venmo, Zelle, Revolut, and Wise, criminals are increasingly exploiting fragmentation to commit fraud. New tools are available to detect these frauds in real-time. The article explores how off-chain and on-chain data can help prevent cryptocurrency fraud. Off-chain data is information stored outside the blockchain, while on-chain data is recorded directly on the blockchain. Integrating these two types of data enables more comprehensive and effective monitoring of transactions, thereby reducing the risk of fraud.