Real-time Transaction Monitoring: AI algorithms analyze blockchain transactions in real time, identifying unusual patterns like large transfers that deviate from normal user behavior, flagging potential fraud.
Anomaly Detection: Machine learning models learn typical transaction patterns and can highlight transactions that significantly differ, indicating suspicious activity even if the fraud method is new.
Behavioral Analytics: AI analyzes user behavior on exchanges and wallets, detecting anomalies such as unusual login attempts or trading activity that could signal compromised accounts.
Identity Verification (KYC/AML): AI-powered tools automate and enhance KYC and AML processes by verifying identities through facial recognition and preventing fraudulent account creation.
Smart Contract Auditing: AI can audit smart contracts for vulnerabilities and malicious code, helping to prevent exploits and rug pulls in decentralized finance (DeFi) related to Bitcoin.