TRM Labs, a regtech firm providing blockchain intelligence and risk management solutions for digital assets, has partnered with identity verification platform Sumsub to enable compliance teams to detect illicit crypto activity before transactions go on-chain.

The collaboration will allow Sumsub users to leverage TRM’s risk intelligence capabilities to screen wallet addresses, score transactions, and review risk signals in real time – all in one dashboard within Sumsub’s crypto monitoring solution.

According to data from Chainabuse, TRM Lab’s open-source fraud reporting platform, reports of scams using generative artificial intelligence ( GenAI ) between May 2024 and April 2025 jumped by 456% compared with the same period in 2023-24. Sumsub data reveals a 48% increase in fraud across the crypto industry in 2024, representing 2.2% of all verification attempts on global crypto platforms.

This surge underscores the evolving threats faced by the crypto sector and highlights the critical need for virtual asset service providers ( VASPs ) to adopt advanced blockchain analytics, behavioral fraud detection, and continuous monitoring, according to Sumsub.

The company says integration with TRM is critical in providing compliance teams with real-time risk intelligence to detect risk signals early – enabling fast decision-making to protect customers and stay compliant.

Key benefits of the integration include:

• Early risk detection: It proactively screens destination wallet addresses for fraud and financial crime risk to block high-risk withdrawals before transactions are executed.
• Advanced risk scoring: It assesses risk based on exposure to threat categories and entity profiles – enhanced by TRM’s industry-leading attribution to detect crypto fraud and other suspicious activity early.
• Unified, real-time risk monitoring: It employs a single dashboard view of identity and on-chain risk, enabling faster, data-driven compliance decisions.
• Automated compliance workflows: It defines custom alert rules that streamline transaction monitoring and fraud prevention, reducing manual effort and reduce false positives.

Users can seamlessly connect existing TRM subscriptions to Sumsub's platform via the Bring Your Own Key ( BYOK ) model. This enables clients to use their own keys to manage and secure their data, ensuring full control over sensitive information while using Sumsub's crypto monitoring system.