Hawk

Another crypto exchange has been fined USD 100 million for breaching US anti-money laundering (AML) laws. How can crypto firms avoid such crippling penalties? Hawk's Chief Product Officer, Wolfgang Berner, has teamed up with Martin Hirtreiter and Dr. Robert Schmuck from Deloitte to propose the combination of blockchain analytics tools (BATs) with AML transaction monitoring solutions. In the white paper, they look at the limitations of BATs: - End-to-End Fiat & Crypto Monitoring: BATs often can't track fiat-to-crypto exchanges, a critical aspect of money laundering schemes - Pattern Analysis: BATs typically fail to detect suspicious transactional or behavioral patterns beyond basic rule-based scenarios, which are crucial for regulatory compliance and identifying money laundering - Indirect Risk Scoring: BATs often assign indirect risk scores, as only a few blockchain addresses are directly linked to crimes. This leaves analysts with too much discretion in deciding whether to file a Suspicious Activity Report (SAR). As a result, these limitations contribute to several issues: - Low detection rates, increasing the risk of misuse for money laundering - Technical shortcomings in complying with money laundering laws and regulations - Inefficiencies in alert clearing processes and high numbers of false positives Read the full white paper for more useful insights: https://lnkd.in/dCPvvhq3 #aml #antimoneylaundering #crypto #cryptocompliance #cryptomonitoring #financialcrime #transactionmonitoring

Exciting news today: Hawk is pleased to announce the launch of the AML AI Overlay. Financial institutions no longer need to replace their existing AML systems to significantly reduce false positives and detect novel crime with AI. “We’re seeing remarkable results with the AML AI Overlay,” said Wolfgang Berner, Chief Product Officer at Hawk. “It’s delivering prediction accuracy in excess of 85%, reducing false positives to less than 15%. Best of all, this success is coming through AI optimization rather than a total system overhaul - delivering both precision and speed to the financial institutions.” The Overlay removes many of the obstacles that have so far prevented major financial institutions from realizing the full value of AI in detecting money laundering: - Provides seamless AI augmentation on top of an existing AML system, enabling banks to quickly see the benefits of AI without costly and time-intensive system replacements - Shown to be faster and more cost-effective than in-house AI optimization efforts - Delivers the explainability required by regulators As a result, financial institutions can quickly activate a transformative approach to addressing the persistent challenges of managing their AML compliance operations. The benefits include: - Reduction of false positives: impactful segmentation and expert-driven feature selection help to minimize unnecessary alerts - Enhancement of crime detection: risks overlooked by existing systems can be identified with the AML AI Overlay, with intuitive and transparent explainability - Acceleration of investigations: workflows can be streamlined with clear alert decision criteria and straightforward AI explanations - Cutting of operational workloads: a 50% reduction in workload can be achieved, even when already using optimized rule sets For more on how the Overlay works, read the full press release: https://lnkd.in/drDxeYZW   For a demo, please contact us here: https://hawk.ai/contact-us

How are payment companies upleveling their AML operations in 2025? Here’s how Hawk is helping ONE achieve their AML compliance goals: - Transaction Monitoring: ONE uses Hawk’s configurable rule sets to monitor transactions for suspicious activity, setting their own risk factors and thresholds to fine-tune their AML function - Payment Screening: Hawk’s platform enables ONE to screen customers and counterparties against sanctions lists in real-time, quickly identifying and reporting higher-risk payments - False Positive Reduction: Hawk’s models filter out alert noise, reducing analysts' workloads and maximizing their impact by allowing them to focus on truly productive alerts With Hawk, ONE is now equipped for future growth, a collaboration that drives innovation and streamlines processes. Read more on the case study: https://lnkd.in/dS6zx7PD

Why did payment platform ONE choose Hawk to help improve their anti-money laundering operation? Our latest case study explains how our holistic AML solution is supporting ONE's growth. Read more on how we're delivering • AML Transaction Monitoring • Payment Screening • False Positive Reduction Why Hawk? - Increased efficiency: Hawk is delivering results at speed and scale - Ease of use: a simple UX, geared to maximizing productivity - Customer support: solid support for implementation and ongoing running of the system The outcomes? - Implemented in weeks - Smooth and painless go-live process - Increase in true positives alongside a decrease in false positives - Less noise for analysts - Increase in productivity - Ability to focus attention where it matters most - Enhanced regulatory compliance - Process efficiencies and a boost in productivity Read the full press release and hear what else ONE’s MLRO, Anastasia Chernysh, has to say: https://lnkd.in/dS6zx7PD

In our webinar with ACAMS, we showed how AI acts like 'rules on steroids'. AI reverses the traditional process by learning from an investigator's actions, rather than relying on a Risk Steward to create rules: - A supervised AI approach is led by data and informed by the Risk Steward - AI watches how investigators label suspicious cases - It looks at the behavior that prompted the investigator to apply those labels - It allows AML professionals to reverse-engineer desired outcomes from data - AI learns from investigators instead of following preset rules - The Risk Steward's role shifts from setting rules to deciding what the AI needs to know Read more on the difference between rules and AI in AML technology at: https://lnkd.in/dYXwHxuv

Hawk is proud to be a truly international company. With exceptional talent from 28 nations and offices around the globe, 'Our Team Is Why We Win' sits at the core of our values. We're hiring, so come and join us in the fight against financial crime! Named one of the fastest-growing tech companies in Europe in 2024, we're continuing our growth in 2025. Check out our vacancies in Product, Engineering, Solution Consulting, and Marketing, with roles in the US, the UK, and Germany: https://lnkd.in/dm6qTcxP Make an impact that matters; at Hawk, your work helps combat financial crime globally, every single day.

What are the key trends in AML & Fraud for 2025? 65% of financial institutions plan to invest in real-time payment fraud solutions, according to the Datos Insights top ten list. AI will play a big role in this. How? 1/ Speed & Precision With ten seconds or less to process an instant payment, banks must employ systems and technology that can perform precise checks on the payments as soon as they occur. As false payment blocking negatively affects the customer, high-precision detection is paramount. Without technology that can precisely process and analyze data at speed, banks will be left in the dust by fraudsters. 2/ Scalability Offering instant payments will likely increase a bank’s transaction volume and cause more seasonal and event-based payment surges. Banks need the capacity to screen and verify the payments as the volumes grow and fluctuate. Without systems and technology designed for scalability, the risk to a bank’s bottom line posed by instant payment fraud will increase. 3/ Pattern & Anomaly Detection AI is effective at predicting known patterns of fraud with high precision. However, emerging fraud patterns are difficult to predict. Since it’s nearly impossible for a bank to hire enough human investigators to review all instant payments, it will need AI models built on sound data science that can detect “unknown unknowns” with a high degree of certainty. These models detect how a specific transaction deviates from billions of other transactions analyzed, as well as other transactions in a comparable context. Banks need to find and block fraud quickly and at massive scale. The best way to do this is with AI-powered anomaly detection. 4/ False Positive Reduction In addition to detecting and blocking fraudulent transactions, banks will need to reduce the number of false positives blocked by their fraud systems, especially with rules in place. Blocking a transaction that is not actually fraud damages customer experience and increases friction in the instant payment process. By employing AI models designed to reduce false positives, banks can avoid these negative customer outcomes and continue to grow their business. How can Hawk prevent instant payment fraud in real-time? Hawk's AI-powered fraud prevention technology includes pattern and anomaly detection, false positive reduction, and other machine learning models that can prevent fraud in real-time and at scale. With short implementation timelines, a proprietary fraud pattern library, and a configurable case management system, banks can use Hawk's technology to prevent instant payment fraud and reduce losses. Check out the full article on our website: https://lnkd.in/eMHQH9Qf Find the report from Datos Insights in the comments.

In an interview with Macquarie Group, our CEO and co-founder, Tobias Schweiger, explains how Hawk uses AI to help banks fight financial crime. "By applying those algorithms, we point to suspicious behavior much more quickly and more precisely. We are known for explainable AI, which is to say that are no 'black box' problems with the applications and algorithms that we put to work. In compliance, whoever uses the software is going to want to explain in detail what the AI is doing." Watch the 1-minute video or watch the full video on Macquarie's website for further insight.

The team at Hawk wishes you joy and precious time with loved ones this holiday season. Here's to a bright and successful new year ahead! #HappyHolidays #AntiMoneyLaundering #Fraud #FinancialCrime

At Hawk, we take pride in helping to prevent some of the world’s most despicable crimes by detecting money laundering and other illicit financial activity. Human trafficking is one of those crimes, which is why we’ve donated our holiday gift fund to STOP THE TRAFFIK. STOP THE TRAFFIK estimates that 49.6 million people are currently trapped in modern slavery. We support STOP THE TRAFFIK's work in preventing human trafficking before it happens.