Fraud Prevention
Crowd.Credit uses a 5-layer fraud detection system powered by CrowdProof's ML scoring engine and on-chain analytics to protect users and the protocol.
Detection Layers
Layer 1: Velocity Checks
Real-time monitoring of transaction frequency and volume patterns.
- Maximum transactions per hour/day limits
- Sudden spending pattern changes trigger review
- Geographic velocity (transactions from widely separated locations in short time)
Layer 2: Behavioral Analysis
ML models trained on historical transaction patterns detect anomalous behavior.
- Deviation from established spending patterns
- Unusual merchant categories
- Time-of-day anomalies
Layer 3: Cluster Analysis
CrowdProof's ClusterRegistry identifies related wallets and shared risk profiles.
- Sybil attack detection through on-chain graph analysis
- Shared collateral detection across linked addresses
- Cross-wallet coordination pattern matching
Layer 4: Credit Abuse Detection
Specific patterns targeting credit system exploitation.
- Rapid credit utilization after deposit
- Circular deposit patterns
- Coordinated multi-account strategies
- Collateral manipulation attempts
Layer 5: Network Intelligence
Community-sourced fraud intelligence from the CrowdProof network.
- Shared blocklists across participating platforms
- Cross-platform fraud pattern sharing
- Wallet reputation scores from the broader ecosystem
Response Actions
When suspicious activity is detected, the system responds with graduated actions:
| Severity | Action | User Impact |
|---|---|---|
| Low | Flag for review | No immediate impact |
| Medium | Transaction held | 24-hour review period |
| High | Credit line frozen | Cannot make new purchases |
| Critical | Account frozen | All activity suspended pending review |
False Positive Resolution
If your account is flagged incorrectly:
- You will receive a notification explaining the flag
- Contact support with any additional context
- Reviews are completed within 24 hours for Medium severity
- Critical flags may require identity verification