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

MEXC, a leading cryptocurrency exchange, has released its Q2 2025 Risk Control Summary, reporting a 12% quarter-over-quarter decline in fraud attempts attributed to organized syndicates. The report details 70,621 fraud attempts blocked during the period, linked to 8,501 criminal groups [1]. The decline follows a sharp increase in Q1 2025 and is attributed to AI-led surveillance systems and region-specific response strategies, such as localized teams and user education initiatives [1].

South Asia recorded the most significant reduction in illicit activity, with a 41% drop compared to the previous quarter. This improvement is linked to faster detection mechanisms and localized education efforts. However, the region still experienced an 11% increase in fraud attempts compared to Q2 2024. Indonesia accounted for 73% of Southeast Asia’s fraud cases, with an 18% rise in attempts, while Vietnam contributed 16% with a 35% increase. The CIS region saw the highest relative increase at 83%, though this is a slower pace than the over 200% surge in Q1 [1].

MEXC’s risk control framework is powered by AI models that detect anomalies in trading behavior, login patterns, and outliers in both on-chain and off-chain environments. These systems automatically block suspicious activities or escalate them for human review, ensuring minimal disruption to legitimate transactions. The hybrid AI-human approach has proven effective in reducing fraud execution. Additionally, MEXC has integrated AI tools to monitor market manipulation tactics, including wash trading, spoofing, and pump-and-dump schemes [1].

Despite the improvements in fraud detection, MEXC highlighted the ongoing challenge of user confusion and misinformation. In some cases, fraud syndicates launched disinformation campaigns after their accounts were restricted, aiming to distort the public perception of the platform’s risk control measures. To counter this, MEXC announced a global security education initiative set to begin in August. The campaign will include real-world case studies, simplified explainers on fraud detection models, and guidelines for secure trading [1].

According to Tracy Jin, MEXC’s COO, the progress in Q2 is the result of early intervention, regional specialization, and smarter tools. However, education remains a critical component, as the platform aims to help users understand not only what happens when an account is flagged but also the reasons behind the actions [1].

MEXC’s proactive approach to platform integrity aligns with growing concerns over fraud in the Web 3 industry. The exchange continues to emphasize a balance between security and user experience, leveraging advanced technology to combat evolving threats while fostering transparency and trust.

Source: [1] MEXC Blocks 70,000 Fraud Attempts in Q2, Reports 12% Drop in Syndicate Attacks

(https://cryptodaily.co.uk/2025/07/mexc-blocks-70000-fraud-attempts-in-q2-reports-12-drop-in-syndicate-attacks)