Crypto thefts, fraud hit $1.2 billion in Q1 report

[nishantrajara]

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[1715162988]

1715162988

[ccryptopark]

This is really a huge amount, especially since it is only for the first quarter of 2019. I think that is why many investors are in no hurry to invest and are waiting for official regulation and relevant laws that will allow insurance companies, banks and other financial organizations to come into this business.  With the start of regulation and insurance, cryptocurrencies should become safer for investors.

I know Mike Novogratz is one investor in particular who is a huge proponent for compliance and regulation using third party firms to help with AML and KYC. It makes sense for them to feel their funds secure and not getting scammed

[XinXan]

Don't think that normal businesses have no fraud, they also steal hundreds of millions, banks do it, businesses of all types do it, investment businesses do it. Just because the headlines are like that for crypto it doesn't mean it only happens here. There is MASSIVE fraud out there not involving crypto, billions and billions of dollars, if we knew the real figure it would make the 1.2b seem like dust.

Frauds are everywhere online and offline and this is one big reality the modern world is facing. There are now more fraudsters, hackers, scammers, thieves and similar people than any other time in human history. The snake that pushed Eve to ate the other tree in the garden had produced so many offspring and they are now populating the world...and right they are getting in love with cryptocurrency as the possible stakes are really good. Hell, even North Korea is also taking a big slice of the pie on the stealing market. The only reason why loss in the world of cryptocurrency can always land in the news is because cryptocurrency is something new (in comparison to the fiat system) and something new can always arouse more eyeballs.

I doubt there are ''more'' fraudsters now than before. The biggest difference is the ability to conduct frauds now vs before. Clearly it's much easier now because you have the benefit of anonymity and massive reach through the internet. Hundreds of years ago it was much harder to conduct any type of fraud and you needed a lot of creativity to do it but I'm sure if anyone had access to do it, a lot more people would have done it than compared to now.

[DatKing]

It is very frustrating that cryptocurrencies have serious security problems. They still can't do much against this crypto theft affairs. $1.2 billion is a scaring value. I hope they can improve their security system as soon as possible.

[erikalui]

Compliance with KYC/AML is not the problem but these exchanges despite of having to deal with billions of dollars, they choose not to have theft insurance or may be they have but don't declare it and ultimately it's the loss of customers. Also, when cold storage is proved to be secure, how can these exchanges be so weak and vulnerable to hacks? And also some exchanges DNS serves get hacked which is miserable.

[b3llsf1l3s]

Can you believe that losses from the theft of crypto from exchanges due to fraud hit $1.2B?

https://www.reuters.com/article/us-crypto-currency-fraud/cryptocurrency-thefts-fraud-hit-1-2-billion-in-first-quarter-report-idUSKCN1S62P3

I still can't wrap my mind around why people wouldn't want to have compliance with AML and KYC to better help that this doesn't happen

Well, the crypto thefts, hacking, fraud and another issues that can cause crypto seems bad to new people, i think that was beyond the scope of AML and KYC. Hacker is not that stupid, using his own or another's people account to stole exchanges assets because the exchange absolutely can track on them. That was the bad step for them. In this case the KYC and AML wouldn't work since hackers maybe just do some direct attack to those exchanges, using new address to receive.

Its just like you didn't use the door, you just break the wall to steal it. I think, recently the best way is just apply for manual processing withdrawal for huge amount

[walterhartman]

Crypto is too juicy a target for hackers to ignore.   

[JeBro]

As in any new venture, easy money lovers and various kinds of criminal elements were the first to rush in Bitcoin. It is not surprising that such large sums as more than 1,2 billion dollars are stolen by fraudsters. All the same, the blockchain technology, including bitcoin, despite all the attractiveness, remains not completely refined from a security point of view. This is due to the fact that the requirements for freedom of BTC movement intersect here and the need to track Bitcoin transactions to counter fraud.

[akeegan]

As in any new venture, easy money lovers and various kinds of criminal elements were the first to rush in Bitcoin. It is not surprising that such large sums as more than 1,2 billion dollars are stolen by fraudsters. All the same, the blockchain technology, including bitcoin, despite all the attractiveness, remains not completely refined from a security point of view. This is due to the fact that the requirements for freedom of BTC movement intersect here and the need to track Bitcoin transactions to counter fraud.

I am interested in how governments will react to these cyber security firms to help with tracking rather than getting involved themselves. I would imagine they probably hire these guys to do the search work for them

[MakeMoneyBtc]

I think we are talking about pennies here compared with fraud that other big companies do working with fiat. This is just a small piece of the puzzle and people focus on this because they want to destroy the reputation of cryptocurrencies and also because it's easier to blame something that's relatively new and still unknown by most people. There is crime, fraud and illegal activity everywhere not only in crypto area.

[thankyoulord]

It is really a pity this fraud thing is yet to come to an end. So much has been lost in recent times by investors and traders. Some are even lost through exchanges and others got their wallets hacked. We all really need to be very careful with our private keys and watch out carefully before investing in any project of our choice. Crypto theft will continue but sure we can protect ourselves from becoming a victim

[teddyelwyn]

It is really a pity this fraud thing is yet to come to an end. So much has been lost in recent times by investors and traders. Some are even lost through exchanges and others got their wallets hacked. We all really need to be very careful with our private keys and watch out carefully before investing in any project of our choice. Crypto theft will continue but sure we can protect ourselves from becoming a victim

I agree. I think these are the times that we need to innovate and think of how we can prevent these sorts of fraud before they even happen. Yes decentralized is our goal but that doesn't mean we need to continue old bad habits of how fraud plays out that's why cyber security companies that are crypto specific are necessary

[uray]

I still can't wrap my mind around why people wouldn't want to have compliance with AML and KYC to better help that this doesn't happen

You really think that the fraud is happening because of lack of AML and KYC, if that is the case you are mistaken, these compliance is for legit businesses and the fraud ICO and the hacks that happened in multiple exchanges are the root cause for these losses and it has nothing to do with other factors regarding strict compliance of KYC, so do not mix these things up.

[Adriano2010]

Yes this happen and is not good, i think people should always try to secure better their coins and hold on a hardware wallet, and if possible always not hold so much coins on an exchange or to an online site.

[akeegan]

I think that these larger exchanges that adhere to compliance aren't the ones to blame which is what it sounds like from everyone in the threads. Instead we should be putting blame on bad actors who are moving large amounts of money for illegal purposes either to steal or for illicit drugs

[ccryptopark]

I believe that 1.2 billion comes from 356 million stolen from crimals plus the 851 stolen from Bitfinex exchange

[jjbanks994]

Aww i can't  believe  on this big fraud..but may be it is truth.. but now we should take  steps to prevent this fraud.. we must do some precaution for bitcoin scam and for frauds..

I totally agree. Granted Ciphertrace who generated the report is taking the right steps for helping prevent fraud with their technology

[shield132]

Can you believe that losses from the theft of crypto from exchanges due to fraud hit $1.2B?

https://www.reuters.com/article/us-crypto-currency-fraud/cryptocurrency-thefts-fraud-hit-1-2-billion-in-first-quarter-report-idUSKCN1S62P3

I still can't wrap my mind around why people wouldn't want to have compliance with AML and KYC to better help that this doesn't happen

If bittrex or binance got hacked that's not my problem, this statistics also 100% shows how garbage their security system is (behind this security system there are IT personals which seems can't do their job properly). People usually use bitcoin for two reason: 1. Privacy 2. Profit, so when privacy is my choice, I think KYC documents must be far away from it. And if fraud happens because of stupid user, that's another task.

[blackhawkeye1912]

Security is one of the real obstacles blocking the way for bitcoin to do its full capabilities. The bitcoin technology itself is great. But, the supporting platforms are the ones that having problems. The technology is too young. Developments and improvements are on-going. Though, it's sad to hear those news.

[gabbie2010]

A whooping $1.2B this is indeed massive and portrays the image of cryptos in a bad light despite all regulations, KYCs, AMLs etc I wonder how those stealings aka hacking was successfully carried out without any trace and arrest. I think its high time this problem is nip in the bud else cryptos investors, adopters, hodlers and traders will lose confidence in it. More so cryptos stakeholders should devise  a better way or method of securing cryptos permanently to avoid all these embarrassing stories of hackings and theft.