Coinbase is the easiest place in the world to buy or sell crypto-currency (bitcoin, ethereum, litecoin). We also attract the most sophisticated fraudsters: who use stolen credit cards or bank accounts to purchase crypto-currency and move it out of our hosted wallets. Since crypto-currency is like cash and there's no means to recover the stolen goods once sold, our fraud problem is easily one of the hardest fraud problems in the world.
I'll present some of the recent fraud trends we've seen and how we've solved them using a combination of machine learning systems (machine learning based risk score, anomaly detection and related user modeling). I'll also talk about the Know Your Customer (KYC) program that we've built to establish the identity of our customer.