Post by anenro on Jun 8, 2020 14:17:37 GMT 4
Crypto Crime on the Rise — Good Odds of 2020 Becoming a Record-Breaker
Experts believe that a more holistic crypto ecosystem, especially one that is more AML-centric, is needed to help prevent the spread of crypto scams in 2020.
Per a new report released by digital-asset intelligence firm CipherTrace on June 2, the value of ill-gotten funds siphoned through cryptocurrency crimes over the first five months of the year stands at a whopping $1.4 billion, thus making 2020 a potentially active year in regard to cryptocurrency-related thefts, hacks and fraud.
The report goes on to state that if things continue at the same rate, the total volume of stolen crypto for 2020 has the potential to get close to reaching the $4.5-billion mark set in 2019. Criminals appear to be capitalizing on the ongoing COVID-19 pandemic to target unsuspecting individuals by luring them in via a variety of crypto-related phishing campaigns, ransomware and darknet marketplace fraud.
Additionally, out of the multiple scams that have been accounted for this year, many of them have reportedly made use of email campaigns impersonating various coronavirus-related official groups — such as the World Health Organization, the Red Cross and the Centers for Disease Control and Prevention — to solicit payments and donations in the form of cryptocurrency.
Lastly, CipherTrace officials claim that of the $1.36 billion in crypto stolen so far this year, 98% of the total value — nearly $1.3 billion — can be attributed to fraud and misappropriation rather than to hacks and direct thefts.
Scammers have continued to evolve their methodologies
To gain a better understanding of where the market seems to be heading in the coming months and years, particularly when it comes to crypto crime, Cointelegraph spoke to John Jefferies, the chief marketing officer and chief financial analyst at CipherTrace. In his view, while it is nearly impossible to predict with any certainty how trends related to cryptocurrency theft and fraud will evolve this year, it is possible that by the time the year comes to a close, the amount of funds netted by criminals may exceed the expectations of the report, betting 2019’s $4.5 billion figure.
Further elaborating on the subject, Jefferies stated that the largest contributor to this year’s crypto crime total has been Wotoken’s alleged billion-dollar Ponzi scheme that emerged from China. Furthermore, he is concerned in the coming months about exit scams by smaller virtual asset service providers, or VASPs, that that are struggling financially, adding:
“Retail investors should be wary of any company that uses hyperbolic statements and promises of extraordinary returns to lure them into participating. If WoToken had been required by regulatory agencies to provide detailed investment prospectus and audited financial statements, they wouldn’t have been able to launch their scheme and fool more than 700,000 victims. Many VASPs have dramatically improved their security posture, making it harder for hackers to steal from the platforms themselves.”
An even bleaker picture was painted by Pawel Aleksander, the co-founder and chief information officer of CoinFirm — a blockchain analytics company. He told Cointelegraph that as per his company’s own research and analysis, the volume of crypto funds stolen within the first quarter of 2020 may actually be closer to the $2 billion mark.
Source of article:
www.riskscreen.com/kyc360/news/crypto-crime-on-the-rise-good-odds-of-2020-becoming-a-record-breaker/
and
cointelegraph.com/news/crypto-crime-on-the-rise-good-odds-of-2020-becoming-a-record-breaker
Experts believe that a more holistic crypto ecosystem, especially one that is more AML-centric, is needed to help prevent the spread of crypto scams in 2020.
Per a new report released by digital-asset intelligence firm CipherTrace on June 2, the value of ill-gotten funds siphoned through cryptocurrency crimes over the first five months of the year stands at a whopping $1.4 billion, thus making 2020 a potentially active year in regard to cryptocurrency-related thefts, hacks and fraud.
The report goes on to state that if things continue at the same rate, the total volume of stolen crypto for 2020 has the potential to get close to reaching the $4.5-billion mark set in 2019. Criminals appear to be capitalizing on the ongoing COVID-19 pandemic to target unsuspecting individuals by luring them in via a variety of crypto-related phishing campaigns, ransomware and darknet marketplace fraud.
Additionally, out of the multiple scams that have been accounted for this year, many of them have reportedly made use of email campaigns impersonating various coronavirus-related official groups — such as the World Health Organization, the Red Cross and the Centers for Disease Control and Prevention — to solicit payments and donations in the form of cryptocurrency.
Lastly, CipherTrace officials claim that of the $1.36 billion in crypto stolen so far this year, 98% of the total value — nearly $1.3 billion — can be attributed to fraud and misappropriation rather than to hacks and direct thefts.
Scammers have continued to evolve their methodologies
To gain a better understanding of where the market seems to be heading in the coming months and years, particularly when it comes to crypto crime, Cointelegraph spoke to John Jefferies, the chief marketing officer and chief financial analyst at CipherTrace. In his view, while it is nearly impossible to predict with any certainty how trends related to cryptocurrency theft and fraud will evolve this year, it is possible that by the time the year comes to a close, the amount of funds netted by criminals may exceed the expectations of the report, betting 2019’s $4.5 billion figure.
Further elaborating on the subject, Jefferies stated that the largest contributor to this year’s crypto crime total has been Wotoken’s alleged billion-dollar Ponzi scheme that emerged from China. Furthermore, he is concerned in the coming months about exit scams by smaller virtual asset service providers, or VASPs, that that are struggling financially, adding:
“Retail investors should be wary of any company that uses hyperbolic statements and promises of extraordinary returns to lure them into participating. If WoToken had been required by regulatory agencies to provide detailed investment prospectus and audited financial statements, they wouldn’t have been able to launch their scheme and fool more than 700,000 victims. Many VASPs have dramatically improved their security posture, making it harder for hackers to steal from the platforms themselves.”
An even bleaker picture was painted by Pawel Aleksander, the co-founder and chief information officer of CoinFirm — a blockchain analytics company. He told Cointelegraph that as per his company’s own research and analysis, the volume of crypto funds stolen within the first quarter of 2020 may actually be closer to the $2 billion mark.
Source of article:
www.riskscreen.com/kyc360/news/crypto-crime-on-the-rise-good-odds-of-2020-becoming-a-record-breaker/
and
cointelegraph.com/news/crypto-crime-on-the-rise-good-odds-of-2020-becoming-a-record-breaker
