Besides the obvious regulatory issues and the long road to general acceptance that cryptocurrency has had to deal with, the industry has also been plagued with the issues of scams and frauds. Though this problem is common in any industry that is emerging or involves money, cryptocurrency has had a unique journey in this regard as many have preyed on the lack of widespread information about cryptocurrency to some members of the general public and have gone on to either steal cryptocurrency or run fraudulent businesses that are related to the industry.
According to CipherTrace’s report for the third quarter of 2019, theft and fraud related to cryptocurrency have led to an estimated loss of $4.4 billion.
Take my Money
The security firm released its “Cryptocurrency Anti-Money Laundering Report, 2019 Q3” recently and the reports delved into the various practices of know-your-customer requirements and anti-money laundering measures as well as patterns in crypto-related crimes across 120 different crypto exchanges.
Even though the aggregate figure of money stolen is rather high, the third quarter of 2019 actually saw a decline in the number of crypto scams that have taken place and reflects the lowest in terms of the number of scams in the last two years and for the while of 2019.
“This quarter, cybercriminals stole $6.5 million from cryptocurrency exchanges, while insiders bilked cryptocurrency users out of $9 million in exit scams and Ponzi schemes. This total of $15.5 million represents the smallest number of cryptocurrency crimes of any quarter in the past several years,” the report said.
In terms of the numbers, however, this quarter saw a very high amount of money stolen as a result of crypto hacks and scams and this is of $1.7 billion more from 2018. Though the number of crypto scams that are taking place has declined, the amount of money stolen in total has increased. To an extent, this can we put down to the fact that crypto users are becoming more aware of security measures that should be taken and thus, the scams that take place are on a large scale such as the QuadrigaCX situation.