Cryptocurrency thefts have been rushing their way up in 2019. Digital exchange enhancement is leading to a rise in criminal participating in bigger scams. This has been reported by CipherTrace obtained by Reuters.
The digital currency losses in 2019 surged up to more than 150%. The digital currency crime was $1.7 billion in 2018 and in 2019, it was worth $4.4 billion. Dave Jevans, CipherTrace chief executive officer, told Reuter, ” The 150% increase in crypto theft and fraud reflects how criminals are adapting for bigger and better scores.”
He further added that the attacks have become “more lucrative”. Small attacks are easy to defend.
Cryptocurrencies have taken a lot of attention on an international level since the developers as the relevant participants are pushing their assets in the mainstream market.
There were two main thefts that contributed to a hike in the cryptocurrency crime rate. One fraud involved Ponzi scheme crypto wallet and exchange which led to $2.9 million loss.
another fraud caused a loss of $195 million which involve Canadian crypto exchange QuadrigaCX.
Still, there are many scams that have millions of dollars involved. However, the change cannot be made overnight.
The reported attacks are very few in number. According to Jevan, “Today’s attackers are patient and willing to spend more time waiting for a payout.”
The report also said that 65% of crypto exchanges have a very weak KNC (know-your-customer). This might be one of the leading causes of these scams.