It has been ten years since cyber terrorists first targeted a crypto exchange. With the market scaling exponentially, hackers have advanced their tools a great deal. Despite various advancements, most operators in the crypto space have been unable to come up with reliable security measures.
Growing Security Threat To The Crypto Sector
Cyber-terrorists that target the crypto industry seem to be getting better with time. Besides security breaches, nefarious players in the crypto space have perfected their fraudulent schemes. Some of the most prevalent scams are Ponzi schemes and exit scams.
Crypto Security Breaches And Fraud
Recently, Crystal Blockchain released a detailed report on security breaches and fraudulent schemes in the crypto sector. Their report covers the period between 2011 and 2020. According to the companies analysis, there were 113 documented security attacks and fraudulent schemes. The report states that scams and attacks led to a cumulative loss of $7.6 billion worth of digital assets. This figure is equivalent to the GDP of Monaco.
The most common jurisdictions for security breaches were the UK, US, Japan, South Korea, and China. The report notes that the biggest crypto attack by value was the Coincheck attack of 2018. Soon after the Coincheck exchange was hacked, Japanese regulators began enforcing tougher measures for the crypto sector.
The most common attack on crypto exchanges entails gaining control of an exchange’s internal security systems. Once they gain control, hackers can access the hot wallet of an exchange. These hackers then use their control over the hot wallets to transfer as many of the coins as they can to wallets they control.
In the coming years, hackers that target crypto exchanges will likely grow. Their methods will become more complex, which could throw curveballs at a market that is still experiencing maturation. To ensure the masses understand the threat of cybersecurity attacks, Crystal Blockchain released a map of security incidents and fraudulent activity tied to crypto as of November 2020. The database provides historical information on various incidents that have occurred in the market over time.
Who Is Crystal Blockchain?
Crystal Blockchain is an all-in-one blockchain analytics tool created by the Bitfury Group. The tool is designed to ensure compliance with anti-money-laundering regulations. In most jurisdictions, the AML rules for the crypto sector are still too complex to process without specialized help. Crystal Blockchain supports Bitcoin, Bitcoin Cash, Litecoin, Tether (USDT), Ripple (XRP), and all ERC20 and ERC721 tokens issued on the Ethereum blockchain. The tool is accessible as a free demo version, an API, SaaS, and on-premise installation.
The crypto sector is still young and many opportunists see it as an easy target for those in search of quick profits. Solutions such as Crystal Blockchain ensure that the good guys in the digital asset industry are a step ahead of criminal actors trying to steal from honest participants.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice.