TRM Labs - Sumsub Integration Targets Escalating Crypto Fraud Risks

TRM Labs, a provider of blockchain intelligence solutions, has announced an integration with verification platform Sumsub to strengthen fraud detection and compliance monitoring across the cryptocurrency sector.

The integration will allow Sumsub users to incorporate TRM's blockchain risk intelligence into their Crypto Monitoring system, enabling screening of wallet addresses, transaction scoring, and the review of risk signals in real time - all within a single dashboard. Users can connect existing TRM subscriptions to the Sumsub platform using a Bring Your Own Key (BYOK) model, ensuring they maintain full control over sensitive data while benefiting from the new capabilities.

The partnership comes amid rising concerns over fraud in the industry. Data from TRM Labs' open-source reporting platform Chainabuse shows a 456% year-on-year increase in scams using generative AI between May 2024 and April 2025, compared with the previous year. Meanwhile, Sumsub recorded a 48% rise in crypto-related fraud in 2024, which now accounts for 2.2% of all verification attempts across global platforms.

According to the companies, the integration's benefits include early risk detection - allowing firms to block high-risk withdrawals before transactions occur - and advanced risk scoring based on exposure to threat categories, illicit actors, darknet markets, or scams. It also supports automated compliance workflows, helping to reduce manual review work and false positives.

"As illicit actors evolve, so must our tools," said Ari Redbord, TRM's Global Head of Policy. Sumsub's Chief Growth Officer, Ilya Brovin, called the partnership "a significant step" in advancing Sumsub's platform maturity, adding that it unites blockchain intelligence, identity verification, and behavioral fraud detection to protect customers "at every step of the crypto journey."