![]() Ransomware is a bit unique in that it requires a slightly more sophisticated kind of criminal to pull it off. The report suggests that financial criminals working in crypto have found their pressure points and are doubling down on what is working. Let’s keep in mind as well that criminals are attracted to the same features about cryptocurrency as most consumers: instant availability of funds, pseudo-anonymity, etc.īut ransomware has always been a particular risk for cryptos, and the data from Chainalysis shows that this criminal archetype continues to buck trends. ![]() Aromance scamor aclassified ad scamoperate much the same way in any financial economy, the difference being the type of funds ultimately requested by the scammer. We and others have noted that crypto scams, in general, tend to resemble those of more traditional financial markets. Ransomware attacks have popped up in our coverageseveral timesover the years as an area of serious concern, one that has been specifically cited by FinCEN and OFAC, and one with unique compliance steps to be followed by businesses. We have authored a dozen or so posts describingindividual scams in detailto aid business owners in their understanding of criminal activity, as well as to provide them with material to use in theirconsumer protection strategies. One of the themes we explore at the BitAML blog is crypto scams. Ransomware scams increased by over 300%, accounting for $350 million in lost consumer funds, and representing 7% of measured criminal activity in 2020. However, one trend within that cohort is startling. Without a large-scale criminal event like PlusToken, the “day-to-day” level of more small-time crypto crime appears much lower. No scam of comparable size occurred in 2020, which at face value accounts for the overall decrease in crime analyzed. The data on ransomware attacks in cryptocurrencyĬhainalysis notes in its report that the overall amount of crime in the crypto economy can vary depending on a handful of key, hard-to-predict events.įor example, one such event which contributed to the high rate of crime in 2019 was thePlusToken Ponzi schemewhich accounted for $2 billion in lost funds from consumers. What does this mean for business owners, and how can the crypto space better identify and combat this criminal archetype? We’ll explain below. Treasury issoon announcing sanctionsto target ransomware payments made specifically with cryptocurrency. The problem has become so serious that the U.S. While the overall level of crypto crime has certainly fallen, ransomware scams have increased four-fold. There remains the matter of $10 billion in identified criminal activity concentrated around a very particular criminal activity, onewe’ve written about going back years: The security company’s2021 Crypto Crime Reportrevealed a sharp drop in criminal activity in the crypto market - from a high of 2.1% in 2019 (approximately $21 billion) to just 0.34% (roughly $10 billion).Ī decrease of that size, particularly in the midst of a year of overwhelming economic uncertainty brought on by the COVID-19 pandemic, is certainly cause for celebration. So a recent report from Chainalysis should come as good news. Safe and secure transactions are key to the cryptocurrency industry’s long-term legitimacy and widespread consumer adoption. Here’s what business owners need to know to tighten their compliance against this archetype. Except in one area, where it has increased 4x. Ī recent report shows good news for the crypto industry: crime is down dramatically. If you want a professional to review your AML compliance program to ensure that you’re doing everything possible to combat financial crime in the cryptocurrency space, you can reach out to BitAML for a free consultation here.What can cryptos add to their compliance strategy?.The data on ransomware attacks in cryptocurrency.A recent report shows good news for the crypto industry: crime is down dramatically.
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