Cryptocurrency crimes surge amidst the pandemic

13 July

As the world faces one of the most deadly pandemics in history, many countries are thrown in the throes of economic despair, leaving many people jobless and grappling with their losses due to the effects of the COVID-19. Aside from the unrest experienced by countries, a rise in cybercrimes has been tracked by the intelligence […]

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As the world faces one of the most deadly pandemics in history, many countries are thrown in the throes of economic despair, leaving many people jobless and grappling with their losses due to the effects of the COVID-19. Aside from the unrest experienced by countries, a rise in cybercrimes has been tracked by the intelligence company, CipherTrace. 

According to their reports, there’s an alarming surge of COVID-19 pandemic-related frauds that have been pervading since the lockdown.

CipherTrace said that a lot of fake sites, accounts, and petitions to gather donations for COVID-19 relief were discovered. 

According to CipherTrace, an accumulated amount of 1.4 billion dollars was stolen from the beginning of 2020 until the end of May. They didn’t give an exact projection, but the company said that most of the losses were due to COVID-19 related theft cases. 

‘Consumers, investors, and users continue to adopt cryptocurrency at a massive rate and it is by far the fastest-growing payment system on the planet,’ said Dave Jevans, CEO of CipherTrace.

‘At one trillion dollars in annual payments, cryptocurrency payments have grown from zero to 7 per cent in 10 years, making this volume of funds attractive to bad actors,’ he added.

Some of the schemes discovered by the authorities were hackers posing as legitimate companies such as the Red Cross to obtain information and payment details from people who want to donate.

Additionally, some modus groups create sites and donation links that pretend to be a part of non-government organizations to collect crypto funds supposedly for COVID-19 patients or victims. 

CipherTrace also said that there were also advertisements circulating the dark web regarding the sales of COVID-19 related products and phishing kits.

This year, the biggest cryptocurrency loss is attributed to the Ponzi scheme by Wotoken in China which amounted to at least $1 billion dollars. It was only last month that the authorities discovered the extent of the losses from the theft.  

READ MORE: Japan Crypto and Casino News

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