In today’s world where cyber-crime has eaten deep into the fabric of the society, it is no gainsaying Africa is a hub for digital cum cyber fraud which has taken a toll on the regional economy of the continent and the “virus” is now spreading all over the world. For instance, a Bitcoin (BTC) fraud was experienced in South Africa that claimed almost 80 million Dollars, with an estimate of over 28 thousand victims; the emerging cryptocurrency industry seems to be the target now.
As a result of this, Coinfirm in conjunction with Nigerian-based KAD ICT Hub and Africa Blockchain Lab launched a dedicated sub-network of the AMLT Network with an academic initiative having the capacity to train thousands of Nigerians on how to report and be rewarded for tendering information on crypto-related frauds.
Necessity Mothers All Inventions
Necessarily, the skyrocketing growth of the cryptocurrency market and the dynamic system of crypto transactions, cyber thieves might have just gone a notch high using sophisticated “weapons” to attack digital asset holders, for an industry like that of crypto where people with little or no knowledge join the market, the rate of susceptibility to fraud is high. This initiative of an anti-fraud system is a commendable one, first of its kind and also alleviate the problem of financial exclusion in Africa.
To eradicate this identified threat, Coinfirm, in conjunction with KAD ICT Hub is introducing their AMLT Network into African Blockchain Lab in order to launch a dedicated network with members who would work in pursuance of the goal of the initiative. The first step is a series of training to be conducted in the city of Kaduna, Northern Nigeria. These pieces of training are scheduled to hold for 12 months with nothing less than 12 training session for people in different walks of life.
The target of this training is to mitigate the risk of online scams, AMLT will allow users to submit positive data on trusted parties and help further provide financial access to more entities, especially to dissuaded individuals that have been deterred by high-risk areas.
How Does It Work?
No doubt, the goals is not to popularize threats but to create awareness about ways these threats can be eradicated. Paweł Kuskowski, Co-founder and CEO of Coinfirm stated that “we teach how to report frauds through it and, above all, how to recognize them.”
On the other side other partnership, the Co-Founder and CEO of the KAD ICT Hub, Yusuf Bashir, expressed the startup’s view on the project saying;
“We will change the narrative from the negative perception of Africa being a hub for online fraud to a positive one with Africa taking the lead in fighting online fraud, therefore, helping to build a safer crypto-economy.”
The question still remains; how does AMLT Network work? AMLT tokens, being the incentive serving as the driving force for the AMLT Network, will enable companies as well as individuals to report activities considered suspicious like ransomware, crypto jacking or phishing. There is also a flagging system where a data verified is appropriately flagged to warn other users of the risk.
The reports are fused with over 200 risk indicators alongside Coinfirm’s “C Score” to indicate financial risk. These risks are calculated based on the properties algorithms and risk scenario. This will create some sort of never-ending model where participants of the market are incentivizing to report malicious act thereby increasing their own security. The bigger picture here is that it does not stop at creating security for the members of the AMLT community only but the global virtual currency market as well.
About the Partnering Startups
A closer look into these startups revealed that Coinfirm serves as a perfect foundation for the adoption and use of blockchain. The Coinfirm AML/CTF Platform uses a proprietary algorithm and bids data analysis to create the requisite structure. The suitability of this is that it reduces cost, increases efficiency and streamlines compliance.
On the other hand, KAD ICT Hub is habitat to the African Blockchain Lab; this startup usually serves as the convergence point for entrepreneurs and innovators to share ideas juxtaposing existing problems in the society and world at large with likely solutions. The hub is going to bridge Telemax Engineering Services Limited and the Kaduna State Government to achieve its goal.