The frequency of cryptocurrency frauds and lost funds is increasing day-by-day, with over 1.36 billion dollars in assets stolen by wicked people and companies. As stated by CipherTrace, 2020 might be threatening to customers and companies in the same way as 2019, in which a loss of 4.5 billion dollars was experienced due to fraud.
CipherTrace Warns about an Increase in Crypto Frauds in 2020
According to the latest report of a digital-asset intelligence company, CipherTrace, rapid growth has been observed from January 2020 to May 2020 in the siphoned off funds as a result of cryptocurrency frauds, reaching 1.36 billion dollars in predicted number, and entitling 2020, in the books, as the 2nd largest year.
The siphoned off funds, in 2020, might reach approximately 4.5 billion dollars as per the finding of the report. The estimated value was set in 2019. Since a lot of web-based businesses have seen profitable growth in their operations, criminals have started to take advantage of COVID-19.
The collapse of Bitcoins at the start of 2020 might be a suitable condition for them.
Unwitting customers have been a victim of multiple frauds through phishing attacks, ransomware, and darknet frauds.
Criminals have made numerous attempts by presenting themselves as official representatives and requesting funding and sending fake emails as if they have been sent by the World Health Organization (WHO), The Red Cross, and the CDC (Centre for Disease Control and Prevent).
Increment in the demand of Anit-Money Laundering Strategies
One of the reasons for increasing crypto frauds is the insufficiency of the right AML (Anti-Money Laundering) strategies. As per the Chief Information Officer and Co-founder of CoinFirm, Pawel Aleksander, the actual amount of stolen funds from January 2020 to May 2020 is 2 million dollars, not 1.5 billion dollars.
Talking to the CoinTelegraph, a prime publication aiming at the crypto world, Aleksander discussed how firms could tackle with these frauds in the best way and said that a suitable AML mechanism should be launched in the first place.
In his exact words, protecting the crypto world will take place by:
Achieving synergy between AML, fraud investigations, and an open data ecosystem that takes the security of crypto financial markets to a level never seen before or even thought possible in traditional finance.
Improving Anti-Money laundering mechanisms is specifically a practical industrial aspect that will have a positive influence on the cryptocurrency gambling industry as well.
With blockchain casino proclaimed secure than any traditional equivalent, introducing ethical rules for gamers’ identity verification will be significant in the coming times.
As crypto frauds have been rapidly increasing globally, a consequence of it will be to secure the blockchain operators more than ever. Meanwhile, authentic charity initiatives have been introduced by the crypto community, like tournaments by Bitcasino.io and Binance.
