The Impact of Cyber Crimes on Crypto Market

 

Cryptocurrency itself is a very appealing target for cybercriminals. In 2018, over $1 billion in cryptocurrencies was stolen from exchanges and other platforms worldwide. Attacks and fraud, which historically targeted regular payment systems, banks and fiat currencies, have now been adapted to incorporate cryptocurrencies. As such, attacks on various crypto assets like crypto exchanges or personal crypto wallets have now became a routine – an increasing number of malware and phishing activities are targeting crypto investors and enterprises. The impact of cybercrime on the cryptocurrency market has been controversial. Some have argued that cybercrime has had a minimal impact on the cryptocurrency market, while others have claimed that it has had a significant impact. The emergence of cryptocurrency and cybercrime has raised concerns about the security of cryptocurrencies and the accuracy of data provided about them by virtual asset exchanges. Cyber threats to cryptocurrency are widespread and increasing in frequency.

This makes cryptocurrencies a criminal’s haven. Every business that uses cryptocurrencies is a target unless they increase its cybersecurity measures. Cybercriminals can buy or sell virtual currencies without ever being discovered. Cryptocurrencies have been around for already a decade, but it is only since mid-2017 that they have gone mainstream and attracted huge criminal interest. Digital money is here to stay and will probably play a significant role in the future economy. As such, it will always be a lucrative target for cybercrime. Protection for the mass market and for enterprises against crypto-related attacks should be part of everyone’s security strategy. 

"There are parts of the cryptocurrency structure that are being exploited to launder criminal cash, particularly from drug dealing. The growing menace of ransomware also utilises cryptocurrencies as its payment mechanism. There’re several types of cyberattacks where cybercriminals are taking advantage of cryptocurrencies. They include ransomware, DDoS extortion, cryptojacking, and cryptocurrency exchange hacks.

While cryptocurrency might be the dawn of a new age, it also has its counterpart that’s not so popular – cybercrime. It comes in many forms, from ransomware to email scams. The truth is, cybercriminals love laundering money and scheming businesses using cryptocurrency scams. Due to their anonymous nature, cryptocurrencies play an essential role in the underground economy. They are used for most criminal-to-criminal (C2C) payments on Darknet forums and marketplaces. Around $76 billion of illegal activity per year involves Bitcoin1, and by 2021 Cybersecurity Ventures predicts that more than 70 percent of all cryptocurrency transactions will be for illegal activity. Also, many hackers demand payment from victims for attacks, such as ransomware or DDoS extortion, in cryptocurrencies (V2C – victim-to-criminal).

"Once limited to hackers, ransomware groups and other denizens of the 'dark web,' cryptocurrency is becoming the preferred payment method for all types of scams," the report said. Cyberattacks using ransomware are incre­asing in frequency, and ransom payments made to the hackers are swelling as well. Cryptocurrency and the exchanges where digital currency can be traded anony­mously have emerged as key tools for the cyber extortionists. The vast sums being paid by corporations to regain control of their computers would have been near-impossible to move in any other legitimate currency market, experts say.

 

The emergence of cryptocurrency and cybercrime

Over the past decade, other fully anonymous cryptocurrencies have also started to emerge. Unfortunately, these developments are likely to lead to a surge in cybercrimes. Cybercriminals can unknowingly use your computer to generate cryptocurrency. Cryptocurrencies also create a veil of anonymity that creates many problems, particularly concerning cybercrime. There is no technology that is free from cyber-attacks. Cryptocurrency plays a vital role in cybercrimes. Most of the cyber-attacks are conducted for financial benefits. One such attack is ransomware, where the hacker extracts sensitive information from the person or an organization and demand ransom in exchange for the stolen data. The hackers prefer to get their ransoms in cryptocurrencies, as it has the advantage of anonymity and easy transfer across the countries. Such crypto ransoms can be easily exchanged for real money anytime they want. The cryptocurrency has given a new phase to the dark web and its crimes.

With cryptocurrency, no evidence leads back to the perpetrators. And with more and more businesses accepting cryptocurrency across the business world, cybercrime has become quite a threat. Cryptocurrency itself is a very appealing target for cybercriminals.

Cryptocurrency is a digital currency based on blockchain technology, which is a secure digital ledger that records crypto transactions. Investing in cryptocurrency might be risky if you don’t do your homework and don’t follow best cybersecurity practices.

cryptocurrencies also create a veil of anonymity that creates many problems, particularly concerning cybercrime. The rise in popularity of cryptocurrencies like bitcoin has led to new cybersecurity issues, such as the recent ransomware attack on the Colonial Pipeline. We are looking in some common cryptocurrency scams and why businesses should ensure they have a cyber insurance policy to stay protected from these and other cyber attacks.

Over the past decade, other fully anonymous cryptocurrencies have also started to emerge. Unfortunately, these developments are likely to lead to a surge in cybercrimes. Consumers, businesses and governments are finding new ways to use cryptocurrency, but a recent string of cyber attacks has highlighted security risks and shortcomings.

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(All the material in this article are only the views of the author, and couldn’t be taken as “Financial Advice”)

 

 

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Impact of Cybercrime on Crypto market

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