According to the nobl insurance’s latest report the one hundred billion dollars ($100 billion) worth cryptocurrency market in US is gradually turning into a hacker’s haven.
Even though cryptocurrencies have proliferated and hack tracking systems to prevent consumers from falling prey to malware attacks have grown more sophisticated, hackers continue to find ways to sneak in. The three latest reports generated by nobl insurance serve as a stark reminder of how susceptible the cryptocurrency industry is.
The report suggests that cybercrimes occurring in the cryptocurrency market in the US have grown manifold since 2017, amounting to over three hundred percent (355%) year on year until Aug 2019.
Why ignorance is not a bliss for the cryptocurrency market in US
While emphasizing on the US investors’ awareness surrounding the malpractices and the risks associated with the cryptocurrency transactions, the report stipulates that there is very little understanding of the scale of the cryptocurrency-related crimes in the US.
Up until now, over one billion dollars ($1 billion) have been lost to malware attacks, however, the American investors do not seem to have the real understanding of the number of damages done as sixty-four percent (64%) of the survey participants mentioned an amount less than fifty million dollars ($50 million).
When it comes to cryptocurrency exchange hacks, sixty-five percent (65%) of the participants believed that their accounts are prone to attack. Whereas, a significant forty-eight percent (48%), who own less than a thousand dollars ($1000) worth cryptocurrency holdings yet constitute a substantial portion of hundred billion dollar industry, show the least amount of concern over the hacks.
Awareness is crucial
Although the new generation hackers continuously test the security strength of the blockchain technology, the industry does offer a way to fix this. Cold wallet, or an offline wallet, is not connected to the internet, thereby, sheltering it from hacks. However, the report highlights that only ten percent (10%) of cryptocurrency owners in the US are aware of such a facility.
Citing a horrific experience of Monty Munford, an enthusiastic investor who became a victim of over twenty-five thousand pounds (GBP 25,000) worth of cryptocurrency hack when the hard-earned money just vanished from his private key address, the report underscores the attention cybercrimes require.
An acclaimed cybersecurity expert, Dr. Terry Lee Cooper, contributes to the staggering findings by adding that if the three hundred percent (300%) growth trend in cyber hacks continues, the industry is bound to lose a massive twelve billion dollars ($12.87 billion) worth of money by 2020 and possibly even thirty-eight billion dollars ($38.3 billion) by the end of 2022 through stolen accounts and hacks.
Dr. Cooper adds that one of the primary reasons for hackers to penetrate the most advanced technologies is the ignorance or unawareness of the investors that even the most tightly secured systems can be compromised. The best way to prevent modernized crimes is collectively working together for a better understanding of the vulnerabilities.