Crypto thefts, fraud hit $1.2 billion in Q1 report - page 3.

b3llsf1l3s

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Quote from: akeegan on April 30, 2019, 04:38:38 PM

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

erikalui

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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.

DatKing

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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.

XinXan

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Quote from: CryptoBry on May 02, 2019, 10:22:02 PM

Quote from: XinXan on April 30, 2019, 04:47:22 PM

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.

ccryptopark

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Quote from: Umkar on May 03, 2019, 06:56:07 AM

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

nishantrajara

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Umkar

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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.

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Quote from: darylalban on May 02, 2019, 12:37:11 PM

Quote from: buwaytress on May 02, 2019, 10:57:15 AM

Don't be mad at the hackers, hackers be doing what hackers do. Thieves be doing what thieves do. Be mad at the exchanges who practise poor security. The report confirms what we've always known, that most of these hacks were only possible because of simple negligence on the part of exchanges. Just because they're "crypto" they're allowed to get away with being lazy when it comes to security. Normal companies have to do audits, but apart from maybe Coinbase and those Japan licensed ones, exchanges can operate these days without any kind of auditing, much less practice compliance. But hey, as long as they can launch IEOs, they're fine, right?

I don't agree with you. I think there are exchanges that are doing as much as they can to handle AML and KYC compliance. The report in this thread is generated by a leading cyber security firm Ciphertrace who just partnered with Binance. They're leading the charge with proper auditing I think

You missed my point. KYC and AML is for regulatory compliance... as the terms both suggest, so that they know who their customers are and can help prevent money laundering. This is to stop bad guys from misusing these services to transfer finances for terrorism, for example. Nothing to do with how thefts and fraud cause people to lose their funds at these exchanges. You can KYC and AML to death but if you don't have good security, then your funds are at risk of being stolen by hackers.

This is exactly what I mean by a poor understanding of how crypto is stolen.

cipherhut

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Crypto theft is major concerning issues in the bitcoin or we can say in the crypto community and therefore security is the booming topic to safeguard cryptos in the wallet.

rmilly

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Quote from: rjp55 on May 02, 2019, 01:01:49 PM

1.2 billion dollars just in 2019 first quarter? That seems like too much. I feel they are exaggarating number to get more interest to this story. At least i hope so.

I thought that too but if you think about the possible exit scam Quadriga and other scams found in other countries it definitely adds up. I doubt that they would just pick a random number to use for media purposes. They use that high number for sure in the title to capture everyone's attention but it is alarming

traderethereum

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Quote from: rjp55 on May 02, 2019, 01:01:49 PM

1.2 billion dollars just in 2019 first quarter? That seems like too much. I feel they are exaggarating number to get more interest to this story. At least i hope so.

We don't know if that number is true or not but I think that is a prediction number that has been lost so far. I think we need to be careful to protect our account and let the thief stolen the coins we have.
Although they are trying to do many ways to get the coins, as long as we can protect and don't panic with what happens in the market, we could prevent from the loss because of the thief.
I think in Q2 and next, they will still trying to steal more crypto, and they will search in the other exchange and make those exchange as their next target.

CryptoBry

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Quote from: XinXan on April 30, 2019, 04:47:22 PM

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.

rjp55

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1.2 billion dollars just in 2019 first quarter? That seems like too much. I feel they are exaggarating number to get more interest to this story. At least i hope so.

kingpin4321

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Those figures are very high and this would only prove that fraudulent activities in cryptocurrency are on the increase and there is a need for stronger security measures put in place

darylalban

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Quote from: buwaytress on May 02, 2019, 10:57:15 AM

Don't be mad at the hackers, hackers be doing what hackers do. Thieves be doing what thieves do. Be mad at the exchanges who practise poor security. The report confirms what we've always known, that most of these hacks were only possible because of simple negligence on the part of exchanges. Just because they're "crypto" they're allowed to get away with being lazy when it comes to security. Normal companies have to do audits, but apart from maybe Coinbase and those Japan licensed ones, exchanges can operate these days without any kind of auditing, much less practice compliance. But hey, as long as they can launch IEOs, they're fine, right?

I don't agree with you. I think there are exchanges that are doing as much as they can to handle AML and KYC compliance. The report in this thread is generated by a leading cyber security firm Ciphertrace who just partnered with Binance. They're leading the charge with proper auditing I think

Anomrak

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Quote from: Slow death on May 01, 2019, 03:09:18 PM

Quote from: akeegan on April 30, 2019, 04:38:38 PM

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

one of the things that makes me very angry and disappointed with this cases of hackers is that the thieves are never found and punished. different from real life where there are many chances of thieves being found and punished. We need laws, we need governments to inspect the exchanges. we need to have responsible exchanges and there is another question: how are the people who lost their funds in the exchanges will be compensated?

In most case the hacked service try to refund the customers. I think very few are covered by theft insurrance, they usually have fund reserves for that, but it's a confidential information for them.

As an exchange customer I'll be very interested for contracts terms and conditions saying your fund are covered from theft up to xxxx $.

For me the best thing will be law forcing exchanges or any crypto services with assets custody to cover customer funds. For example in France (and I think in all Euro zone), each bank providing accounts must cover funds up to 100 K€ per persons.

buwaytress

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Don't be mad at the hackers, hackers be doing what hackers do. Thieves be doing what thieves do. Be mad at the exchanges who practise poor security. The report confirms what we've always known, that most of these hacks were only possible because of simple negligence on the part of exchanges. Just because they're "crypto" they're allowed to get away with being lazy when it comes to security. Normal companies have to do audits, but apart from maybe Coinbase and those Japan licensed ones, exchanges can operate these days without any kind of auditing, much less practice compliance. But hey, as long as they can launch IEOs, they're fine, right?

Johnzky

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Quote from: Genemind on May 01, 2019, 12:33:30 AM

I guess it's the right time for every exchange to add more restrictions and security. We can't question is there are lots of exchanges who are requiring Kyc. Everything online is hackable so we must submit and comply with the requirements to at least lessen the crime rate.

But the essence of being decentralized and anonymous will be gone?people here arw not complying in KYC requirements because they want to retained their anonymity and if this will happen then what is the difference of cryptocurrency to banking.networm?yes a believed there's a high security that must happen here but its not just about kyc,because some of ths hackings are insidr jobs if they are not all

BrewMaster

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There is trouble abrewing

it is interesting to know that although the number here looks huge but it is a total of a much smaller number of theft cases. in other words the sum is big not the count. for example every time you see an exchange is hacked they lost millions of dollars but when a user is hacked he loses $500, $1000 and smaller amounts. and the number of exchange hacks is big enough to overshadow the user losses.
that makes you think about where the problem comes from...

Meysa_richa

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I don't believe in deception like that, and I think that KYC is really needed and can help us become problematic identities.

Topic: Crypto thefts, fraud hit $1.2 billion in Q1 report - page 3. (Read 845 times)