Cryptocurrency worth of $4.4 billion stolen in 2019 - CipherTrace
- This quarter saw the reduction of losses to scams and hacks.
- Only one-third of the top exchanges have strong KYC procedures.
Hackers and cyber thieves ran away with over $4.4 worth of cryptocurrency since the beginning go the year, according to the 3Q report on cryptocurrency-related crimes, published by CipherTrace.
The experts of the research company found out that hackers stole digital assets to the tune of $6.5 million from cryptocurrency exchanges. Another $8 million were lost to various cryptocurrency scammers and fraudsters. While this is the lowest quarterly figure in the recent two years, the year-to-date losses are significantly higher from what was registered in 2018 ($4.4 billion against $1.7 billion in 2018).
The experts also pointed out to the reduction of outright thefts and the growing share of exit scams and insider-trading frauds. This trend may signal that cryptocurrency exchanges have improved their IT infrastructures and forced criminals to seek easier ways to do a heist.
Apart from that, CipherTrace performed a comprehensive examination of cryptocurrency exchange Know Your Customer (KYC) procedures. The results are sobering: 65% of the top-120 exchanges have weak KYC policies.
Only one-third of the exchanges have a strong KYC process in place. It means that users have to take several steps before they are able to make a deposit or withdrawal.
They not only require the ID process but also proof of address. Some require a phone call or video chat to complete the KYC process, the researchers explained.
Author
Tanya Abrosimova
Independent Analyst
