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The variety of crypto crime victims has been growing at an alarming within the final 5 years, with a 295% final 12 months alone. Nevertheless, the full worth misplaced in crypto-related frauds has decreased since 2019.
Crypto Attracts Cyber Crime
In accordance with a report from analytics agency Crypto Head, People reported solely 340 circumstances to the FTC in 2016. The quantity has been growing at a mean fee of 300% since then.
In 2020, the Federal Commerce Fee (FTC) obtained 82,135 crypto-related fraud complaints.
The three most typical complaints have been about Preliminary Coin Providing (ICO), pump-and-dump schemes, and crypto theft.
Whereas the SEC took important steps after 2017 to curb the ICO frauds, a brand new trick utilized by hackers includes the “rug-pull” of DeFi tasks.
Bitcoin is the most well-liked cryptocurrency amongst criminals. In accordance with the report, BTC-related crimes dominated by over 94% final 12 months; whereas, Ethereum’s share was lower than 1%. This pattern has been constant for the previous 5 years.
Whereas client complaints have gone up, the full worth siphoned by hackers is reducing. In accordance with one other report from main analytics agency Chainalysis in February, the full illicit share of cryptocurrency transactions quantity final 12 months was solely 0.34%.
In 2020, $10 billion tokens have been despatched throughout legal wallets, half of the amount in 2019.
The increasing scale of the market is definitely attracting dangerous actors into the combo. Nevertheless, whereas the variety of crypto crime stories is growing, their complete dimension is restricted. The fraudsters appear to be targetting smaller teams as a substitute of going after exchanges.
The latest $2.3 million Bitcoin recovery by the FBI within the Colonial Pipeline hack is a superb instance of the advantages of transparency in crypto transactions.
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