A new report has been written detailing the surprisingly large amount of money that is being stolen across different cryptocurrency exchanges on a daily basis. The report states that “Researchers from Ernst & Young found that more than 10 percent of funds from initial coin offerings (ICOs) have been lost or stolen by hackers. That’s about $400 million from $3.7 billion in funding between 2015 and 2017.
The firm looked at 372 ICOs that were hit by attacks, highlighting cryptocurrency’s risky market.” The majority of these types of hacks occur through the use of phishing. This is a technique where victims are tricked into following malicious links where they unknowingly put in their private data. Hackers have used this to steal up to $1.5 million from the funding of ICOs per month. The firm stated that the standards for security in this type of industry needs to be way higher. Greg Cudahy, Ernst and Young’s global technology, media and entertainment and telecommunications leader stated that “Once new standards are in place that are accepted by all participants-allowing for improved transparency, fraud prevention, and legitimacy — the protection of investors and users alike has a greater chance of success.”
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As cryptocurrencies become more prevalent in the economic world with the high amount of media coverage that they are continuing to get, it will be interesting to see if this high amount of crime is able to be curbed. As the industry is able to grow not only in monetary value, but in maturity, the hopes are high that this type of frequent security breeching will eventually slow down, giving way to a more legitimate way to run the market. Until that happens, the future of the cryptocurrency world will be difficult to predict in the near future.