Although transactions made on bitcoin are recorded on a public ledger so anyone can view them, all the transactions are pseudonymous. Apart from that, if the user makes use of multiple wallet addresses to transfer funds, he can’t be traced at all. Due to this, bitcoin has been popular among bad actors such as hackers and scammers.
Up till now, millions of dollars worth bitcoins have been subjected to hacks and scams. According to an estimate, the number of bitcoins lost to hacks exceeds than possessed by the creator Satoshi Nakamoto. This shows that bitcoin has been very favorable for the bad actors for carrying any kind of illicit or unethical activities.
A few months ago, a report suggested that the British lost as much as £27 million in a year due to bitcoin scams. The financial watchdog of the country stated that illicit activities involving crypto had risen as compared to last year. People living in the UK have gone so far that even the Queen wasn’t spared. Several letters were sent to selective people based in the UK on the behalf of Queen Elizabeth and funds in the form of bitcoin were requested to tackle the negative economic impacts resulting due to Brexit.
Besides using profiles of popular and famed to gain the trust of people and then scam them, many of the bad actors have turned to ransomware attacks to fulfill their illegal goals. After breaching security protocols and getting their hands on confidential or private information, hackers push victims to pay the ransom in bitcoin by threatening to release or share the information on public platforms.
Bitcoin is a programmed digital currency that facilitates peer to peer payments and eliminates the need for a supervisory authority. Due to this, the world’s first truly decentralized is often criticized as a lack of monitoring when combined with anonymity makes bitcoin a perfect option for hackers and scammers all over the world.
Although bitcoin is criticized by many, blaming it entirely isn’t justified. Bitcoin itself is a secured payment method but due to weak links in the security of crypto exchanges, hackers can steal bitcoin from the reserves.
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