State of Verification

and Monitoring in
the Crypto Industry
2023
A data-driven report on regulations and
verification practices for crypto companies
Contents 02/38

1. About this report 03

2. Methodology 04
3. Key Findings 06
4. Trends in crypto verification and monitoring, 2023 08
5. Verification insights and challenges for crypto companies 12
6. Verification performance statistics 16
7. Fraud statistics 24
8. Regulatory changes: Travel Rule expansion 32
9. Report Summary 35
10. How Sumsub can help 37
 03/38
About this report

This comprehensive report looks into the latest insights, key

practices, and statistics on identity verification in the crypto
industry.

It provides crypto businesses with a clear understanding of industry

verification standards and trends, offering ideas on how to enhance
the user experience and improve operations.

The research was conducted by Sumsub, a tech company that

helps businesses secure the whole user journey, offering one
platform that includes User Verification, Business Verification,
Transaction Monitoring, Travel Rule, and Fraud Preventions
solutions.

Please don't share the content of this report without giving us credit.

© Sum and Substance Ltd (UK), 2023

Methodology 04/38

This study seeks to understand the verification practices of crypto

businesses.

Main verification aspects considered

Verification methods

Speed of checks

Pass rates

Fraud cases

Compliance

The three main sources of data used in this report

100+ Millions 800,000+

crypto companies of verification fraud attempts
surveyed checks analyzed studied
Methodology 05/38

The methodology for this report consists of three

main components

A survey conducted among 100+

crypto companies
to gather direct insights into their current
practices and experiences with user
verification. The survey questions covered
various aspects of verification, such as
onboarding processes, fraud prevention,

and compliance measures.

Internal statistics and data were

thoroughly analyzed
We considered the first 8 months of 2023 and
compared our findings with the same period in
2022 identifying common verification patterns
and challenges faced by crypto companies.

Expert interviews were conducted

with professionals
in the crypto industry. This gave valuable
insights on verification trends, regulatory
changes, and potential solutions.

All graphs and infographics are based on internal statistics compiled

from the data of customers who gave their consent, and a survey.

The data has been aggregated and anonymized.

Key Takeaways 06/38

Numbers of 2023

<60 seconds 21 seconds

average average verification time in Germany,
verification time one of the fastest regions for doc-
globally based checks

Challenges of the year

Fraud prevention Travel Rule compliance

Fraud is becoming more It’s getting harder to meet
sophisticated emerging regulatory
requirements

Threat technology of the year

Deepfakes
In 2023, the number of deepfakes
in the crypto industry increased by
128.15% compared to 2022
Key Takeaways 07/38

Main trends in crypto verification for 2023

Fraud cases have decreased in number,

but the attack methods are getting more
professional.

The emergence of AI tools is giving rise to

threats such as deepfakes.

The shift from document-based to doc-

free verification solutions is underway.

Compliance measures have become

increasingly widespread with the global
implementation of the Travel Rule.

Legacy verification solutions are no longer

sufficient in the face of increasingly
sophisticated fraud threats.
 08/38

Trends in crypto verification

and monitoring, 2023

In 2023, the crypto industry continues to evolve and mature,

becoming increasingly integrated into the mainstream financial

system.

Dr. Zvi Gabbay

Senior Partner, Head of Capital Markets and Financial

Regulation Department Barnea Jaffa Lande & Сoin

an interview with the “Sumsub for Experts” YouTube

channel

[the] Crypto industry is looking for bridges to connect to the

conventional system, and these bridges can only be built if

there is regulation.

Governments and regulatory bodies around the world are

actively working towards establishing a clear framework for

cryptocurrencies*, which will provide greater clarity and

stability for the industry.

* In this report, the terms "cryptocurrencies", "virtual assets" and "digital assets"

are used interchangeably.

Trends in crypto verification and monitoring, 2023 09/38

There's growing momentum to regulate

crypto service providers

While many countries have Anti-Money Laundering (AML) rules,

not all apply them to crypto providers yet. This is driven by the
need to address concerns around growing fraud, illicit activities,
and bankruptcies specific to the crypto space. Meanwhile, the FATF
Travel Rule is embraced by more and more countries, with UK as

a recent add-on.

Tony Petrov
Chief Legal Officer at Sumsub

A lack of AML & KYC controls can be an early warning sign

that an exchange or vendor may have fundamental problems…
It can be expected that this component will become the
number one due diligence item for venture funds investing

in crypto fintechs.

This year’s significant regulatory developments in the crypto

industry were marked by the Grayscale case. In August, Grayscale
scored a legal victory against the U.S. Securities and Exchange
Commission (SEC) in regards to its ETP application (spot bitcoin
traded fund with freely tradable shares).

The outcome sets a precedent for crypto regulation in the US,

shaping the future and highlighting the need for comprehensive
regulatory frameworks that provide clarity for market participants
and investors.
Trends in crypto verification and monitoring, 2023 10/38

Web3 compliance trends

The trend toward collaboration between regulatory bodies and
crypto is further underscored by the transformative potential of
Web3, where regulatory frameworks will be essential to navigate
the challenges and opportunities presented by decentralized
technologies.

David Zareh
OnChain Accounting

"Web3 is poised to significantly reshape compliance across

various sectors. Enhanced data privacy, security compliance,
and the management of decentralized financial transactions,
especially concerning cryptocurrencies and DeFi platforms,
will necessitate the development of robust regulatory
frameworks.

Intellectual property compliance will gain complexity with the

rise of Non-Fungible Tokens (NFTs) and decentralized
autonomous organizations (DAOs), requiring innovative
strategies to safeguard creators' rights and ensure lawful
operations. Furthermore, the globalization and
decentralization inherent in Web3 will demand meticulous
navigation through international regulations and tax
obligations, ensuring adherence across diverse jurisdictions.

Therefore, a collaboration between regulatory bodies and

organizations will be imperative to navigate the multifaceted
challenges and harness the potential of Web3 effectively.
Trends in crypto verification and monitoring, 2023 11/38

Fraud and other crime continue to be a prominent

concern for the industry,
including investment scams, ransomware, and more. However,

for some of these challenges, countermeasures at the state level

are gradually making criminals more vulnerable, as police and other
authorities acquire new tools for investigations. For instance, in
February 2023, the Department of Justice (US) successfully located
$3.6 billion worth of Bitcoin that had been stolen back in 2016.

Identity fraud remains a significant concern for crypto

companies. Fraudsters continue using cutting-edge
technologies, such as AI, to develop more sophisticated
methods to deceive crypto companies.

Pavel Goldman-Kalaydin
Head of AI/ML at Sumsub

As we face the ever-evolving trends in generative AI and AI-

driven fraud, we anticipate AI technologies to develop quickly,
and more sophisticated fraud to emerge, affecting even more
industries. The use of synthetic fraud is rising at an alarming
rate and pioneering to the rapid spread of misinformation,

as recently seen with the fake images of a supposed explosion

at the Pentagon resulting in significant media hype.

Verification insights & challenges:
12/38

crypto companies view

The main challenges that crypto companies face in 2023 are

the spread of Travel Rule regulations and more advanced fraud

methods.

Our data indicates that 98.5% of crypto companies already

integrated or plan to integrate Travel Rule solution providers.

Do you plan to use a Travel Rule solution provider?

1.5%
Yes we already do
28.0% Yes we are planning in few years
42.5%
Yes we are plannng this year
No we are not planning
28.0%
Verification insights & challenges: crypto companies view 13/38

Our research reveals that 55% of crypto companies reported an

increase in fraud-related losses connected to applicants. On the
other hand, 34% stated that they noticed no change fraud-related
losses this year.

Do you see any changes 10.6%

in fraud-related losses
this year compared to
previous years? 34.0% 55.4%

Increase No change Decrease

7/10 77%
Deepfakes are a growing of crypto companies have
concern for the crypto observed new fraud patterns
industry, with 70% of and schemes. Meanwhile,
companies noting their fraudsters are constantly
increasing popularity among devising new ideas to exploit
fraudsters. This matches our vulnerabilities in the crypto
data that shows a shift from industry.
the use of expensive rubber
masks to relatively cheap
deepfakes by fraudsters.
Verification insights & challenges: crypto companies view 14/38

Matthew Hogan
Expert in fraud investigations

In 2023, I've observed two significant fraud trends in

cryptocurrency-related crimes.

First, there has been a substantial shift away from

cryptocurrency kiosk-related crimes towards investment-style
and pig butchering scams, likely driven by the rise of
decentralized finance (DeFi) and increased anonymity in
cryptocurrency transactions. These scams often involve
scammers befriending victims on social media or dating apps
and persuading them to invest in fraudulent cryptocurrency
projects.


Secondly, the standardization of investment and pig
butchering scams has become evident, with victims
consistently reporting similar sequences of events. This
standardization enables scammers to streamline their
operations, making it easier to target more victims.


Looking ahead to 2024, I'm anticipating that these
cryptocurrency fraud patterns will continue evolving,
becoming more sophisticated and likely including more
advanced AI and deepfakes.
Verification insights & challenges: crypto companies view 15/38

Crypto companies mentioned various fraud schemes

they faced for the first time this year, these included:

Case 1 Case 2
AI-generated profiles Crypto money muling
“I have seen 2 profiles which “One of the most significant
were made with the help of AI. cases was a big layering
An additional verification scheme that affected users
(manual) is required. The AI from France (mostly), Italy,
made all the smurfing in a way Portugal, and Spain.
that it was difficult to Fraudsters tried to transfer the
recognise by software. The fraudulent funds by performing
human effort should be very multiple bank transfers to
attentive to details. I used mules to then exchange to
Google reverse image and crypto and send to well-known
tineye to detect the crypto exchange services to
inappropriate/fraudulent act.” conceal the funds.”

The first case shows that crypto companies are facing adverse
effects of the AI technologies on their verification processes. This
makes the industry seek more advanced anti-fraud solutions that
allow AI-powered fraud to be detected automatically.

The second case highlights the importance of a comprehensive

approach to fraud protection. Even with advanced deepfake
detection systems, fraudsters can manipulate individuals who
willingly undergo KYC verification. To effectively address this issue,
a multi-layered approach that includes transaction monitoring and
behavioral antifraud measures is crucial. At Sumsub, we use
clustering algorithms to identify money mules and prevent them
from extracting laundered funds.
 16/38

Verification performance statistics:

speed, pass rates, methods

Identity verification speed by region

Across all regions, verification time has nearly halved from 2022 to 2023

Europe currently leads as the fastest region, with onboarding

taking less than 30 seconds. Meanwhile, verification speed has

increased by 1.75 times in Africa, 1.53 times in Asia, and 1.89

times in Latam.

Average time for standard user verification

Region Average verification time

Africa

2023 48 sec

2022 84 sec

Asia

2023 43 sec

2022 66 sec

Europe

2023 28 sec

2022 53 sec

Latam

2023 48 sec

2022 91 sec

MENA

2023 32 sec

2022 58 sec

North America

2023 52 sec

2022 88 sec

Oceania

2023 36 sec

2022 77 sec
Verification performance statistics: speed, pass rates, methods 17/38

Identity verification speed by country

In 2023, a significant decrease in average verification time was

observed among Sumsub's crypto clients. Brazil (+65.4%), Mexico
(+61.9%), and Germany (+58.0%) stand out as the top three
countries with the most significant improvement in verification time.
Germany is among the leaders with an average verification time of
21 seconds for the standard verification flow.

In 2023, the average verification time takes less than 60

seconds worldwide.

* Standard verification flow stands here and later for ID+Liveness+ PEP, sanctions lists
and adverse media checks
Verification performance statistics: speed, pass rates, methods 18/38

Average time for standard verification flow in crypto

Region % YoY Change / Verification time

Australia

2023 47 sec
34.7% decrease
2022 72 sec

Brazil

2023 38 sec
65.4% decrease
2022 110 sec

Canada

2023 58 sec
31.7% decrease
2022 85 sec

Germany

2023 21 sec
58.0% decrease
2022 50 sec

Hong Kong

2023 35 sec
22.2% decrease
2022 45 sec

Israel

2023 36 sec
29.4% decrease
2022 51 sec

Mexico

2023 35 sec
61.9% decrease
2022 92 sec

Nigeria

2023 57 sec
35.9% decrease
2022 89 sec

Singapore

2023 54 sec
15.6% decrease
2022 64 sec

South Africa

2023 37 sec
43.0% decrease
2022 65 sec

UAE

2023 43 sec
25.8% decrease
2022 58 sec

UK

2023 36 sec
38.9% decrease
2022 59 sec

US

2023 54 sec
40.6% decrease
2022 91 sec
Verification performance statistics: speed, pass rates, methods 19/38

Identity verification pass rates by region

Africa has seen the largest increase in pass rates, but there is still

room for improvement. With a relatively lower pass rate compared

to Europe and North America, Africa’s verification landscape may be

influenced by factors like poor photo quality which depends on the

devices used.

Meanwhile, the average pass rate in Europe

and North America is high, at around 94%

Average pass rate for standard verification flow, by

region

Region Pass rate

Africa

2023 80.6%

2022 66.0%

Asia

2023 91.6%

2022 90.0%

Europe

2023 94.3%

2022 94.0%

Latam

2023 92.9%

2022 92.9%

MENA

2023 92.0%

2022 89.8%

North America

2023 94.4%

2022 91.0%

Oceania

2023 93.1%

2022 91.8%
Verification performance statistics: speed, pass rates, methods 20/38

Identity verification pass rates by country

In 2023, the most substantial growth in average pass rates was

reached by Singapore (from 82.8% to 92.2%), South Africa (from

84.6% to 89.1%), Australia (from 91.3% to 93.8%), and the United

States (from 90.9% to 93.9%) experienced a significant increase as

well.

Hong Kong has had one of the highest pass rates in 2023 with 96.6%
Verification performance statistics: speed, pass rates, methods 21/38

Average pass rates for standard verification flow,

by country

Region % YoY Change

Australia

2023 93.8%
2.5% increase
2022 91.3%

Brazil

2023 91.9%
1.4% decrease
2022 93.3%

Canada

2023 94.8%
0.9% increase
2022 93.9%

Germany

2023 95.9%
0.9% decrease
2022 96.8%

Hong Kong

2023 96.6%
0.7% increase
2022 95.9%

Israel

2023 93.3%
0.6% increase
2022 92.7%

Mexico

2023 91.9%
0.2% decrease
2022 92.1%

Nigeria

2023 71.3%
1.8% increase
2022 69.5%

Singapore

2023 92.2%
9.4% increase
2022 82.8%

South Africa

2023 89.1%
4.5% increase
2022 84.6%

UAE

2023 91.9%
0.7% increase
2022 91.2%

UK

2023 93.8%
1.4% decrease
2022 95.2%

US

2023 93.9%
3.0% increase
2022 90.9%
Verification performance statistics: speed, pass rates, methods 22/38

Proof of Address verification pass rates by country

Proof of Address (PoA) verification can pose challenges for crypto

companies as document types vary greatly across countries. This

process can result in drop-offs as users face difficulties in

submitting the required documents.

However, using a verification provider with advanced technical

infrastructure and extensive experience in handling documents can

help crypto companies achieve high pass rates.

In 2023 the highest conversion rates for PoA were achieved in

Singapore (91.5%), Slovakia (89%), and Hong Kong (87.5%).

In 2022 Turkey (86.8%), Singapore (84.7%), and Canada (80.2%)

were among the leaders based on PoA conversion rates.

Verification performance statistics: speed, pass rates, methods 23/38

Non-Doc Verification statistics

Non-Doc Verification uses government databases where

regulations permit. This method gained more popularity last year,

making onboarding faster and more user-friendly. Additionally, the

use of such databases makes fraud almost impossible since the

information is pre-verified by governments.

At Sumsub, Non-Doc Verification is available in 9 countries: Argentina,

Bangladesh, Brazil, Ghana, India, Indonezia, Nigeria, Netherlands,

and the UK.

Implementing Non-Doc verification has allowed us to achieve

impressive pass rates and dramatically reduce verification time.

Below are Sumsub’s 2023 Non-Doc Verification results:

Document-based vs Non-Doc Verification results

Pass rates Verification time

Country Doc-based Non-Doc Country Doc-based Non-Doc

Nigeria 71.3% 95.4% Brazil 38 seс 5 sec

India 87.7% 94.9% Ghana 46 sec 3 sec

Overall, in countries where local, Non-Doc Verification methods are

available, users get a convenient and trustworthy verification

process.
Fraud statistics 24/38

Fraud rates by region

In 2023, the overall number of fraud cases decreased

compared to 2022. However, the situation varies by region

Region Fraud Rate

Africa
2023 1.7%
2022 2.2%

Asia
2023 2.6%
2022 4.9%

Europe
2023 1.0%
2022 0.8%

Latam
2023 1.0%
2022 0.6%

MENA
2023 1.4%
2022 1.3%

North America
2023 1.4%
2022 2.2%

Oceania
2023 1.1%
2022 1.1%
Fraud statistics 25/38

Fraudulent verification attempts in Asia reduced from 4.9% to 2.6%

for all cases. A similar decrease has been seen in Africa and North
America. On the other hand, Europe, Latam, and MENA experienced
a slight increase in fraud levels.

Meanwhile, our survey participants have observed a rise in fraud-

related losses. The paradox here is that, although the number of
fraud incidents seems to have decreased, the level of sophistication
and the resulting financial and reputational damages of fraud has
actually increased. 

Legacy KYC providers are unable to effectively identify advancing

fraud methods, so it is evident that robust and advanced anti-fraud
solutions are required.

To effectively combat advanced fraud, it is crucial for modern anti-

fraud solutions to leverage AI technology for detection. AI helps in
various scenarios, such as identifying imperceptible artifacts in
deepfakes, searching for document templates through similarity
analysis, automatically rejecting invalid applications (e.g., receipts
instead of documents), and more.
Fraud statistics 26/38

Fraud rates by countries

In 2023, Israel, Brazil, Mexico, and Hong Kong experienced an

increase in fraud, though Asian Region showed promising progress

with an almost two-fold decrease in fraud cases. Canada and South

Africa witnessed no major changes.

Notable decreases were observed in the United States, UAE,

Nigeria, and Singapore. The UK, Germany, and Australia experienced

slight decreases in the number of fraud incidents. This can be

attributed to greater awareness of fraud among businesses.

Fraud statistics 27/38

Fraud Rates by country

Region % YoY Change

Australia
2023 0.8%
0.2% decrease
2022 1.0%

Brazil
2023 0.7%
0.2% increase
2022 0.5%

Canada
2023 1.0%
0% No change
2022 1.0%

Germany
2023 0.8%
0.4% decrease
2022 1.2%

Hong Kong
2023 2.2%
0.9% increase
2022 1.3%

Israel
2023 1.4%
0.6% increase
2022 0.8%

Mexico
2023 1.1%
0.6% increase
2022 0.5%

Nigeria
2023 2.5%
0.6% decrease
2022 1.9%

Singapore
2023 0.5%
0.5% decrease
2022 1.0%

South Africa
2023 0.7%
0% No change
2022 0.7%

UAE
2023 2.1%
0.8% decrease
2022 2.9%

UK
2023 1.1%
0.1% decrease
2022 1.2%

US
2023 1.7%
0.8% decrease
2022 2.5%
Fraud statistics 28/38

Most popular fraud types in crypto

In the crypto industry, the primary forms

of fraud continue to be traditional
document fraud, which has been joined
by the growing trend of deepfakes.

Another important problem is fraud occurring throughout the whole

user lifecycle. Genuine users may pass the verification process
initially, but later engage in fraudulent activities. Additionally, there
is the risk of a real user passing KYC on behalf of a fraudster for
monetary gain.

To address this challenge, companies need to implement

ongoing measures like transaction monitoring and other
customer lifecycle checks.

Andrew Sever
Co-founder and CEO of Sumsub

Our internal stats show that an alarming 70% of fraud activity occurs
past the KYC stage, a clear indication for our business to adapt, as KYC
checks alone are no longer sufficient.
Fraud statistics 29/38

Fraud types at the onboarding stage

In 2022 36% of fraud cases involved printed documents, followed

by 16% where genuine IDs were altered, while 10% were
entirely forged ID documents.

By 2023 there were notable shifts in the landscape. 53% of fraud

cases involved printed documents, 6% resulted from edited
real IDs, while 20% involved completely forged documents.

The increase in completely forged ID documents shows that

fraudsters are becoming more skilled and experienced.

Document fraud cases

2022 2023

21%
36%
38%
53%
20%

10% 16% 6%

Printed docs Altered IDs Entirely forged Other

Fraud statistics 30/38

Deepfake fraud
The advancement of AI and ease of access to face swap tools have
spurred the adoption of deepfake creation among fraudsters. This
leads one fraudster controlling multiple deepfake accounts for
deceptive purposes.

Almost 10% of deepfake fraud comes from Spain, 8% from the

UK, 8% from Japan and 3% from the US.

A significant threat is posed to the crypto industry. In 2023, the

prevalence of deepfakes surged by 128.15% compared to 2022,
more than doubling in frequency.

Pavel Goldman-Kalaydin
Head of AI/ML at Sumsub

All businesses operating digitally and performing remote verification are

vulnerable to deepfake fraud. However, fintech, cryptocurrency, and
gambling platforms are especially at risk.

Deepfake technology now extends to traditional document fraud.

Instead of relying solely on stolen documents and pre-recorded
videos, fraudsters can create fake images from scratch.
Fraud statistics 31/38

Forced verification

When someone goes through verification against their will on behalf

of a fraudster, this is known as “forced verification.” In such cases, it

is possible to discern that the victim is acting against their will by

analyzing the photos or Liveness footage taken during verification.



Forced verification is a growing trend worldwide. According to our

internal statistics, forced verification grew from 0.5% to 0.7% of all

fraud cases in North America in 2022. In Q1 2023, that figure rose

to 1.1%. Meanwhile, in Germany, forced verification made up 5% of

all fraud in Q1 2023, compared to 0.3% in all of 2022.

Pavel Goldman-Kalaydin
Head of AI/ML at Sumsub

It is alarming that the proportion of forced verification is growing.

Likewise, sometimes the person being verified is obviously

unconscious. They may be sleeping, not feeling well, or under the

influence of substances. This means that they are not actively and

consensually participating in the KYC process. This may lead to crime

and financial fraud if not detected and stopped in time. 

Forced verification can be detected with machine learning models

trained in a certain way.

Regulatory changes: Travel Rule
32/38

expansion

The Travel Rule refers to FATF Recommendation 16, which requires

virtual asset service providers (VASPs) to collect and share
customer information during cryptocurrency transfers for anti-
money laundering purposes.

Global implementation of the Travel Rule is rapidly approaching. The

UK mandated it on September 1, 2023 and the EU is expected to
enforce it through the Regulation on Information Accompanying
Transfers of Funds and Certain Crypto-Assets in 2024.
Regulatory changes: Travel Rule expansion 33/38

Travel Rule implementation by jurisdiction. Fall, 2023

Already implemented

Europe

Switzerland
Germany
Liechtenstein
Estonia
Gibraltar
Austria
Portugal
UK

2020 2021 2021 2022 2022 2022 2023 Sept 2023

Other jurisdictions

USA
Bahamas
Singapore
Israel
Philippines
Venezuela
Indonesia
Malaysia

2019 2020 2020 2021 2021 2021 2021 2021

Canada
South
UAE
Mauritius
Cayman
British
Japan
Hong Kong

2021 Korea
2022 2022 Islands
Virgin
2023 June 2023
2022 2022 Islands

2022

Coming soon

Lithuania
EU from

Jan 2025 30 December 2024

Regulatory changes: Travel Rule expansion 34/38

Su Carpenter
Director of Operations CryptoUK

"I think the biggest challenges organisations are facing this year are
around the lack of clear direction and guidance being made available in
relation to Travel Rule expectations. We know firms are looking at the
operational readiness of complying with this guidance, but the
requirements on organisations in relation to the sunrise issue and cross
jurisdiction verification of transactions where there are inconsistencies
in travel rule application are still a major area of concern."

To make compliance for crypto companies easier, Sumsub

developed an automated Travel Rule solution in 2023.

Connect to over 500 VASPs in the Sumsub

client ecosystem and enjoy free Travel
Rule transfers for a whole 6 months! This
offer is valid until the end of 2023

Connect Now

Sumsub is trusted by:

Report summary 35/38

This study has derived several significant conclusions.

1 Fraud cases have decreased, but fraudsters have

become more professional
Despite the overall decrease in fraud cases, fraudsters are
becoming more sophisticated, making it harder to spot them due
to the use of more advanced technology, including AI. Additionally,
despite efforts to combat fraud, fraud-related losses are still
increasing. This stresses the need for ongoing improvement in
user verification.

2 The emergence of AI tools leads to new threats, such as

deepfakes
AI technologies enable the creation of convincing deepfakes that
can be used by fraudsters to impersonate individuals during
identity verification processes. To combat this, verification
systems may need to incorporate advanced AI and machine
learning techniques.

3 The shift from document-based to Non-Doc Verification

solutions is underway
Traditional identity verification relies on easily forged documents
like passports or driver's licenses. Non-Doc solutions verify users
via government databases, in some cases using digital identities
and biometrics. This transition increases convenience and reduces
the risk of document-based fraud in the countries where Non-Doc
is allowed by regulations.
Report summary 36/38

4 Compliance measures have become increasingly

widespread with the global implementation of the Travel
Rule
More jurisdictions are adopting measures to comply with crypto
Travel Rule regulations. However, there is still a lack of universal
standards from country to country.

5 Legacy verification solutions are no longer sufficient in

the face of increasingly advanced fraud threats
Crypto clients are seeking comprehensive verification solutions
that cover all their needs at once, including advanced fraud
protection and risk assessment across the whole customer
lifecycle.
 How Sumsub can help 37/38

One verification platform to secure the whole user

journey
Sumsub covers the whole user journey for crypto companies, from
onboarding to transactions. These include a wide range of
verification solutions, including ID and Address Verification, Non-
Doc Verification, AML screening, Fraud Monitoring, and more.

Sumsub’s in-house team of compliance experts assists crypto

companies in navigating complex regulatory requirements, including
the Travel Rule, and successfully entering new markets.

Onboarding Orchestration Ongoing Monitoring

Sign Up User
AML
Login Fraud
Transactions
Verification Screening Monitoring

Email
ID Verification PEP+
 Device
Device
Ongoing

Risk Assessment Sanctions Intelligence Intelligence AML Transaction

Liveness
 Monitoring
Phone
and Face match Adverse
 Behavioral
Behavioral

Risk Assessment Address Verification Media Fraud

Fraud
Bank Account

Live Agent Video Call Detection Detection Verification

Device

Intelligence Doc-free Verification Face

Face
Fraud

Authentication Authentication Transaction

Public Digital Identity 

Monitoring
Systems MFA Ongoing

QES/eIDAS(coming soon)
AML Monitoring Behavioral

Fraud

NFC Detection
K nown Face Search Travel Rule

Blocklist Check Compliance

Duplicate Check
Want to stay
compliant and fraud-
free while keeping
pass rates high?
Get a free demo