MEXC Reports 12% Drop in Syndicate Fraud Amid AI-Driven Security Measures

MEXC reported a 12% decline in fraud attempts from organized criminal groups in Q2 2025, with 70,621 incidents blocked across the platform. The exchange attributed this reduction to AI-powered surveillance systems and tailored response strategies, including localized teams and educational initiatives. Tracy Jin, MEXC’s COO, emphasized the importance of evolving defenses against fraud networks and highlighted that risk control is a protective measure rather than punitive action [1].

The report noted significant regional variations in fraud trends. South Asia experienced the largest drop in illicit activity, a 41% decrease, due to improved detection and localized response efforts. Despite this progress, the region still saw an 11% increase in fraud attempts compared to the previous quarter. Indonesia accounted for 73% of Southeast Asia’s fraud cases, with an 18% rise in incidents, while Vietnam contributed 16%, marked by a 35% increase. The Commonwealth of Independent States (CIS) saw the highest relative growth in fraud at 83%, a slowdown from the over 200% increase recorded in Q1 [1].

MEXC’s risk control strategy relies heavily on AI models that monitor trading behavior, login patterns, and anomalies in both on-chain and off-chain environments. These systems automatically block suspicious activities or escalate them for human review. The hybrid AI-human approach has helped reduce successful fraud attempts without disrupting legitimate transactions. The platform has also integrated AI tools for detecting market manipulation tactics such as wash trading, spoofing, and pump-and-dump schemes [1].

User confusion and misinformation continue to challenge MEXC’s risk control efforts. Fraud syndicates have launched disinformation campaigns after account restrictions, misleading users about the purpose of these measures. To counter this, MEXC plans to launch a global security education initiative in August, featuring real-world case studies, simplified explanations of fraud detection models, and guidance for secure trading. Tracy Jin emphasized the importance of education, stating that users must understand not only what happens when an account is flagged but also the reasons behind such actions [1].

The results in Q2 reflect the impact of early intervention, regional specialization, and advanced tools in enhancing platform integrity. MEXC’s proactive approach comes as fraud in the Web 3 industry remains a critical concern for exchanges and users alike [1].

Source: [1] MEXC Blocks 70,000 Fraud Attempts in Q2, Reports 12% drop in Syndicate Attacks (https://coinmarketcap.com/community/articles/688a3ccc1c29df0fa3641dab/)