Security & KYC: How Shift Markets & Sumsub are Combating Identity Fraud in The Next Wave of Crypto

Security & KYC: How Shift Markets & Sumsub are Combating Identity Fraud in The Next Wave of Crypto

Security & KYC: Combating Identity Fraud in Crypto with Shift Markets & Sumsub

Since 2021, Shift Markets and Sumsub have been at the forefront of providing security and combating identity fraud for firms launching their crypto offerings. This article examines the collaborative efforts of Shift Markets & Sumsub in addressing identity fraud challenges in the ever-changing crypto industry.


As the crypto industry evolves, especially with the introduction of approved Bitcoin ETFs, the fight against identity fraud has become more crucial than ever. Cryptocurrency, with its digital nature and high financial stakes, is particularly susceptible to deepfake fraud.



Identity Fraud & Prevention Strategies

According to Sumsub’s 2023 report, identity fraud rates have nearly doubled from 2021 to 2023, with countries like Bangladesh, Pakistan, Latvia, Hong Kong, and Tanzania experiencing the highest rates. A staggering 87.7% of all deepfake fraud cases occur in the crypto sector. This sector’s vulnerabilities, stemming from its digital format and regulatory complexities, are prime targets for fraudsters. Sumsub’s 2023 Identity Fraud report offers detailed statistics on fraud in crypto and other sectors.



Sumsub’s annual report indicates that fraud is becoming more sophisticated, posing a greater challenge to companies. The advent of AI technologies and complex fraud schemes necessitates secure and efficient solutions. Sumsub’s AI-powered solutions and ongoing checks play a pivotal role in combating advanced fraud attempts, providing customers with heightened security.



To guard against identity fraud, a comprehensive, multi-layered approach is essential. This includes establishing stringent KYC protocols, secure data storage via encryption, routine backups, restricted data access, and advanced transaction monitoring to detect suspicious activities promptly.



Shift Markets & Sumsub: A Synergistic Partnership

Sumsub’s advanced KYC solutions are crucial to the security framework that Shift Markets offers its clients. Through our partnership, businesses entering the digital assets realm have flexible integration options with Sumsub, whether they prefer Shift Markets managing the integration process or using our API and documentation for independent handling. This collaboration ensures a smooth, tailored experience to meet specific client requirements.



Partnering with Sumsub has been transformative for us at Shift Markets and our clients in the crypto exchange domain. Integrating Sumsub’s KYC services into our APIs has streamlined our clients’ onboarding process and reinforced compliance in their exchange operations. Sumsub’s commitment to excellence complements our mission to deliver cutting-edge solutions in the evolving crypto landscape, making this partnership invaluable.” – Nari Osman, Assistant VP of Client Success at Shift Markets.



Sumsub’s partnership with Shift Markets has brought benefits both for our companies and for the customers. They can enjoy a vast variety of Shift Markets’ products, while going through a smooth user journey and keeping their information secure. By combining our technologies we’re creating a safer virtual space for people.” – Sebastian Crespo, LATAM & US Partnerships Lead at Sumsub.



Case Study: Nexus

Nexus Markets, a subsidiary exchange brand of Shift Markets, specializes in liquidity streaming and pricing into a single central limit order book, building a global bridge between customers and other Nexus partners. Catering to a range of trading levels, Nexus provides a trading experience designed for the best execution and order types, backed by extensive fiat on-ramps and deep liquidity, essential in bringing FX on Chain.



The collaboration between Shift Markets and Sumsub has profoundly influenced Nexus. Utilizing Sumsub’s KYC services, Nexus has accomplished significant operational enhancements. There has been an astounding 90% reduction in the manual resources needed for identity verification processes, and a surge in KYC success rates, boosting security for its users.



An outstanding feature of Sumsub’s services for Nexus is the off-portal KYC via a generated link, adding convenience to its user-centric approach. This integration has greatly expedited verification times, slashing the duration from hours to under 3 minutes and seamlessly incorporating fraud detection into Nexus’ exchange solution.



Supported by Sumsub’s technology, Shift Markets can now onboard clients more efficiently and securely. This partnership between Shift Markets and Sumsub is redefining industry standards, offering flexible and powerful solutions that set new benchmarks in the crypto exchange sector.




The partnership between Shift Markets and Sumsub represents a major stride in enhancing security and efficiency in the cryptocurrency exchange sector. By harmonizing Sumsub’s sophisticated KYC technology with Shift Markets’ expertise in digital asset exchange, this collaboration not only fortifies the fight against identity fraud but also streamlines the user experience in crypto trading.



As the crypto landscape continues to evolve, the alliance of Shift Markets and Sumsub is proving to be pivotal, setting new standards in security and operational excellence. Their joint efforts are not just addressing current challenges but are also paving the way for a more secure and trustworthy future in digital currency trading.



Interested in building a powerful digital asset exchange infrastructure? Discover how Shift Markets can tailor solutions to meet your specific business needs. Looking for advanced KYC and AML services? Sumsub’s AI-driven solutions offer efficient and secure identity verification to enhance your processes. Join us in redefining the standards of security and efficiency in the world of cryptocurrency.

shiftmarkets newsletter

Want to learn more?

Let us save you time by walking you through what Shift can do for your business!

See in action