The cryptocurrency world has been losing large sums of money to scams, frauds, and steals for quite long. Nearly $1.1 billion was stolen in the past year. Since early 2017 till present, Lazarus, North Korea’s infamous hacking group, has alone superintended stealing of about $571 million worth cryptocurrency. Lazarus group, also known as Hidden Cobra, stole more than half a billion in the time span where a total sum of $882 million worth cryptocurrency was stolen. Lazarus marks about 65 percent of the total stolen sum.
Kara Haas, founder of a firm that is devoted to CPAs and accountants, expressed her views on the damages done to cryptocurrency by scams and hacks. She didn’t consider cryptocurrency a scam. While speaking to BlockPublisher, she added:
[But] There are many manipulating it and depleting resources from worthwhile projects.
Recently, Dmitry Volkov who is the CTO of Group-IB wrote a report with the title ‘Hi-Tech Crime Trends 2018′ related to cybercrimes. In Hi-Tech Crime Trends 2018, he mentioned that Lazarus has successfully managed to pocket more than half a billion by breaching 14 exchange. He also pointed out four groups that posed the most dangerous threat to the financial sector. He identified Lazarus as one of the four potentials threat while the rest three groups included: Cobalt, MoneyTaker, Silence.
Besides this, the report predicts an increase in similar attacks on the cryptocurrency exchanges in the future as hackers will be focusing on the exchanges instead of the banks. It also mentioned the common practices used by hackers to target the exchanges included phishing, malware, social engineering etc. Moreover, it declared that the hack experienced by Japan’s Coincheck was one of the biggest hacks up until now as it caused a loss of nearly $534 million.
Apart from the cryptocurrency exchanges, Group-IB suggests that Initial Coin Offerings (ICOs) are most prone to be the subject of hackers’ attention. About 10 percent of the money raised by the ICOs was stolen. Other than ICO, mining pools are also highlighted by Group-IB as one of the best options for the hackers.
Cryptocurrency’s loss through scams and frauds is one the biggest problem in the crypto world that needs to be solved so that the crypto world can expand more.