How to Read a Wallet Risk Report
Understanding Your Wallet Risk Report
When you run a wallet check on WalletShield, you receive a detailed risk report. Here’s how to read each section.
Risk Score (0-100)
The overall risk score is a composite metric:
- 0-25: Low risk — the wallet has clean transaction history
- 26-50: Medium risk — some indirect exposure to flagged entities
- 51-75: High risk — direct or strong indirect links to risky sources
- 76-100: Critical risk — direct interaction with sanctioned/blacklisted addresses
Risk Signals
Each report includes specific signals that contributed to the score:
- Sanctions exposure: Direct transactions with OFAC/EU sanctioned entities
- Mixer usage: Funds routed through known mixing services
- Darknet interaction: Connections to darknet marketplace addresses
- Stolen funds: Trace connections to known theft victims
- High-risk exchange: Usage of exchanges with poor KYC standards
Recommended Actions
Based on the risk level, consider these steps:
| Risk Level | Recommended Action |
|---|---|
| Low (0-25) | Safe to proceed |
| Medium (26-50) | Proceed with caution; monitor the address |
| High (51-75) | Request alternative payment address |
| Critical (76-100) | Do not accept payment; report if necessary |
Exporting Reports
You can export reports in PDF format for your compliance records. Reports include:
- Timestamp of the check
- Full risk breakdown
- Transaction graph visualization
- Recommended actions
Regular screening builds a compliance audit trail that protects your business.