How to start career in blockchain forensics and scams?

Hi @Hayley, transitioning into blockchain forensics with your cybersecurity background and cryptography expertise offers an exciting career with many opportunities. Blockchain forensics professionals analyze transactions, detect fraud, and uncover illicit activity within decentralized networks.

To build expertise, you should start by mastering transaction tracing. It is essential to understand blockchain transaction structures and how data is stored on-chain. Focus on tracing flows, identifying mixers, and navigating multi-chain environments. Study both UTXO (Bitcoin) and account-based models (Ethereum) to handle diverse cases effectively.

Learn de-anonymization techniques to connect blockchain addresses to real-world identities. Address clustering, change output detection, and behavioral analysis play critical roles in this process. Review case studies of successful investigations for actionable insights.

Explore common attack vectors like flash loan exploits, phishing, and rug pulls. 

Analyze real-world incidents to recognize vulnerabilities exploited in fraud and money laundering schemes. 

Combine this knowledge with proficiency in tools like Chainalysis Reactor, GraphSense, or Python libraries such as Web3.py and PyCrypto for custom scripts and in-depth analysis.

Develop a solid understanding of global AML and CTF regulations. Familiarity with FATF guidelines and blockchain-specific compliance challenges enhances your ability to work effectively with law enforcement and regulators.

Leverage your cryptography background to study vulnerabilities in wallet encryption, consensus mechanisms, and key recovery techniques. Apply this knowledge to trace and mitigate sophisticated exploits.

You should contribute to open-source forensics projects, participate in blockchain-focused CTFs, and engage with communities like EthSecurity. These actions build your credibility and open doors to specialized roles in blockchain forensics.

Hi, that is amazing advice , thanks so much. Would you say that a KYC Analyst role is a good place to start and are there any specific certifications or courses that you would recommend? Thanks very much Hayley

To pursue a career as a KYC Analyst in the blockchain industry, specific certifications and courses can help you develop the required skills. These include training in anti-money laundering (AML), blockchain compliance, and the use of blockchain analytics tools. 

Below is a clear and concise list of recommended programs: 

(1) AML and Compliance Certifications Certified Anti-Money Laundering Specialist (CAMS) Organization: ACAMS Focus: Global AML standards, cryptocurrency compliance. Cost: ~$1,500 Certified Cryptocurrency Investigator (CCI) 

(2) Organization: Blockchain Intelligence Group Focus: Blockchain transaction analysis and risk detection. Cost: ~$1,500 ICA Certificate in Anti-Money Laundering 

(3) Organization: International Compliance Association (ICA) Focus: AML procedures and crypto integration. Cost: ~$1,000–$1,500

(4) Blockchain-Specific Training Certified Blockchain Professional (CBP) Organization: Blockchain Council Focus: Blockchain basics, compliance, security. Cost: ~$150–$300 

(5) Certified Cryptocurrency Compliance Specialist (3CS) Organization: CipherTrace Focus: Cryptocurrency risk management and compliance. Cost: ~$2,000 

(6) Blockchain Basics Organization: University of Nicosia Focus: Introduction to blockchain technology. Cost: Free 

(7) Blockchain Analytics Tools Chainalysis Reactor Certification Organization: Chainalysis Focus: Blockchain transaction tracing and analysis. Cost: Varies 

(8) Elliptic Cryptocurrency Compliance Training Organization: Elliptic Focus: Identifying and mitigating cryptocurrency risks. Cost: Free or low-cost 

(9) TRM Labs Training Organization: TRM Labs Focus: Blockchain transaction monitoring. Cost: Varies

Suggested Steps: Start with a foundational AML certification like CAMS or ICA AML Certificate. Learn blockchain basics with free or affordable courses like those from the University of Nicosia. Gain practical skills with blockchain analytics tools like Chainalysis Reactor or TRM Labs.

Good pointers in this discussion thread. Thanks all for these resource and experience sharing

Read relevant thread to explore more https://artofblockchain.club/discussion/switching-from-investment-banking-forensics-to-blockchain-forensics

https://artofblockchain.club/article/blockchain-compliance-careers-skills-education-and-market-outlook-for-2025

This is a very good discussion going on. @Heyley thanks for raising this topic on floor. I never thought about blockchain forensics and scams as career option.