Stop Fraud Before It Starts: CUBE3 Now Secures the Gap Between Web2 and Web3

Criminals are exploiting the connection between Web2 and Web3 faster than companies and regulators can protect their stakeholders and citizens. Fraudulent schemes like phishing, rug pulls, and money laundering can devastate individuals and businesses alike. In this article, we explore why the connection between Web2 and Web3 fraud is a critical issue, how it unfolds, and why CUBE3.AI has introduced a solution to prevent fraud before it starts.

The Problem: A Lawless Light Speed Web

The FBI’s 2023 Internet Crime Report highlights an alarming trend: investment scams alone resulted in over $4.5 billion in losses with 86% being crypto related. These scams often begin in the familiar territory of web2 like social media, fake websites, or phishing emails. Victims, lured by a sense of security, then transition into the Web3 space, where their stolen assets become impossible to recover.

Traditional security solutions struggle because they focus on either Web2 or Web3. CUBE3.AI is now bridging this gap through an expert team that has unique experience in both traditional financial rails, AI technology and web3. Our comprehensive approach allows for early detection of fraud patterns across both digital landscapes, enabling intervention before significant damage occurs.

Breaking Down the Fraud Journey: From Web2 to Web3

Imagine a customer targeted by a sophisticated scam. They might receive a seemingly legitimate social media message promoting a new investment opportunity. Clicking a malicious link leads them to a fraudulent website mimicking a real crypto exchange. Unaware of the danger, they connect their crypto wallet and lose their funds. If you haven’t yet, review CUBE3’s recommended ways to prevent fraud from these types of prolific exploits.

The consequences of such scams are far-reaching. Businesses face a surge in customer complaints, chargebacks, and operational costs. Reputation suffers, leading to decreased revenue and potential legal issues.

Real-World Example: How Web3 Crypto Fraud Starts in Dark Web2

A typical example is the sale of compromised crypto wallets on dark web forums. It’s not uncommon that anonymous users advertise the sale of multiple Web3 wallets across various Web2 social media channels and groups. These channels have thousands of members and facilitate the anonymous exchange of crypto through OTC deals.

Selling mature wallets in these forums often signals nefarious intent, whether for money laundering or other types of fraud. CUBE3.AI tracks such activity and flags these addresses as high-risk in real time, protecting businesses from unknowingly engaging with compromised wallets. Explore more examples here.

CUBE3.AI offers a holistic solution, monitoring the entire journey from initial contact in Web2 to the final transaction in Web3. This integrated data helps us not only identify crimes that are currently unfolding but also detect crime-planning-in-progress, offering an early warning system for potential threats. CUBE3’s combined AI analysis enables us to identify nuanced indicators of risk that siloed systems might overlook.

Real-Time Insights and Actionable Risk Scores

Each address is assigned a numerical risk score ranging from 1 to 100, giving businesses clear, real-time insights into the safety of a transaction. These scores are not static; they evolve as new data and behaviors emerge, allowing businesses to make confident decisions based on the most up-to-date risk assessments.

Whether it’s blocking a suspicious transaction or approving a trusted one, CUBE3.AI provides businesses with the real-time insights needed to stop fraud before it leads to financial or reputational damage.

By leveraging dynamic AI-driven analysis and continuous re-evaluation, CUBE3.AI helps businesses reduce the risk of fraud, protect their revenue, and build stronger trust with their customers.

CUBE3’s Dynamic Risk Scoring Process

The moment an address interacts with the blockchain—whether it’s a wallet, smart contract, or transaction—CUBE3.AI proactively evaluates and continuously re-evaluates its risk. We analyze on-chain data such as transaction history, interaction patterns, and the underlying code of smart contracts (including Op and Byte code). If a contract is identified as a potential fraud instrument, we flag the risk early to prevent malicious activities from escalating.

We further enhance this analysis by gathering and integrating Web2 data, including known compromised addresses, phishing sites, and dark web activities. By synthesizing both blockchain and Web2 data, our AI generates a comprehensive risk profile for each address. This allows us to detect crimes in progress, but more importantly, to identify potential threats before they materialize.

The Benefits of Reducing Fraud with CUBE3

By implementing CUBE3.AI, businesses can expect a range of positive outcomes:

Prevent Revenue Loss: Safeguard your bottom line from fraudulent transactions.
Reduce Customer Churn: Protect your customers and build stronger relationships.
Lower Operational Expenses: Free up resources and improve decision-making.
Minimize Chargebacks: Eliminate costly chargebacks and disputes.

The impact goes beyond just financial protection. Businesses utilizing CUBE3.AI can:

Increase Customer Satisfaction & Trust: Build a reputation for security and reliability.
Enhance Brand Image: Demonstrate your commitment to protecting customers.
Build Customer Loyalty: Retain satisfied customers who feel secure using your services.
Demonstrate Regulatory Adherence: Meet compliance requirements and avoid potential penalties while building more credibility in the industry.
Boost Fiat to Crypto Acceptance: Foster trust and wider adoption of crypto.
Outperform Competitors: Gain a competitive edge by demonstrating superior security and protecting your customers.

CUBE3: A New Standard in Fraud Prevention

Fraudsters are constantly evolving, but so is CUBE3.AI. With its best-in-class AI technology and comprehensive approach, CUBE3 sets a new standard in Web3 security. By protecting businesses and users from the ever-present threat of fraud, CUBE3.AI is paving the way for a safer and more secure future in the digital landscape.

To see our newest features in action, book a demo at cube3.ai/book and sign up at panorama.cube3.ai.