7 posts tagged

Fraud

Top Cybersecurity menace

What represents the most terrying things for cybersecurity staff?

No doubt, the greatest threats to cybersecurity is ransomware. Now worth over a billion dollars year (and rising), with attacks like WannaCry and Petya/NotPetya wreaking havoc, every expert worth their salt was planning ways to stay ahead of the hackers.

Anyway, things move pretty quickly in the cybercrime space. Hackers are inventive, ingenious and destructive, always coming up with new ways of pushing boundaries. Ransomware was so last year. While no one will deny it’s still a (massive) problem, other types of cybercrime are beginning to spread like the bubonic plague.
Check out the top five threats keeping cybersecurity professionals up at night right now.

Ransomware

Yes, ransomware is still high up on the list, as this vicious form of cybercrime overtakes systems and locks down computer files with strong encryption. And most businesses end up paying the ransom to get their data back (especially when it isn’t backed up).

According to Peter Tran, Head of Global Cyber Defense & Security Strategy at Worldpay, data manipulation or destruction in the form of ransomware is often the most disruptive and can take out critical infrastructures including healthcare, financial services, and supply chains.

“This is a critical threat as we move toward pervasive hyper-converged mobile, cloud and IoT-based data infrastructures. There’s much more at stake now with modern IT,” he warns.

The Cryptojacking

Spiking by a massive 1,189% in Q1 of 2018, cryptojacking propelled its way past ransomware as the number one nuisance on the block. According to CSO Magazine, what makes this form of cybercrime, so “interesting” is that it blurs the ethical line between everyday internet users and criminals.

In fact, some sites like The Pirate Bay are even using it to replace advertising and earn income. How? As long as you have their site open in your browser, they temporarily hijack your device and borrow your computational power to mine cryptocurrency. As soon as you close your browser, the crypto miner goes away. In other, more serious cases, it infiltrates your system and downloads just like malware.
Since crypto jacking overtakes devices and forces them to mine cryptocurrency, it burns through a lot of CPU cycles. But, unlike DDoS attacks, you won’t see disastrous downtime or funds siphoned off into a criminal’s account. You just get servers pushed to the max mining Monero.

Cryptojacking is more of an irritation than a serious disease. It’s like trying to swat a persistent fly in the outback. In fact, according to Matt Downing, Principal Analyst at Alert Logic, the most worrying thing about crypto jacking isn’t really the crypto jacking itself – it’s the fact that you got crypto jacked.

This highlights a “vulnerability in your system,” meaning that something worse could just as easily have hacked its way in.

Data Breaches

The very word “Equifax” sends a shiver down the spines of cybersecurity professionals, especially if the companies they work for hold sensitive data. In fact, according to research by Norton, 54 percent of US consumers report having had some personal information involved in a breach.

What’s particularly worrying about this is that the data may be sold in stolen data marketplaces on the dark web. Not only do hackers stand to make high profits from this, but they can also gather extra social information they need to hack into more accounts.

Micro Breaches

Oftentimes, cybercrime is aggressive and makes a lot of noise, but this is not the case with what Tran calls “low and slow attacks.” In a type of “micro breach” situation, access is gained slowly and quietly over a period of time by subverting traditional detection methods.

He says, “Lack of visibility or ‘flying blind’ puts security professionals in a constant position of disadvantage… you can’t defend against what you can’t see or detect… that leads to a lot of sleepless nights!”

Internet of Things (IoT) Hacking

By 2020 it is estimated there will be over 20 billion connected IoT devices worldwide. This means the amount of attack vectors significantly increases. “This increases their chances of a successful breach into much larger systems that utilize IoT as their main infrastructure,” Tran advises.

Anyway a bunch of medical devices on the blink and cars crashing into each other?
“Think about it like a hub and spokes on a bicycle wheel,” he explains, “where the hub represents a single IoT device and the spokes all lead to other access points… then multiply that by 20 billion… It’s a lot to monitor for security professionals and certainly will have security pros sleep with one eye open.”

Takeaway

You may have noticed that phishing, cyberstalking, weaponization of AI, and other serious cybercrimes didn’t make a list. There are plenty of other forms of criminality on the web taking place which are keeping our dear friends in the IT department from getting a restful night’s sleep. However, right now, these are the top five on most security professionals’ lists.

Bitcoin-related crimes – only 10%

The Bitcoin and related cryptocurrencies are being used for different criminal activities all over the world  – little wonder, it’s common knowledge nowadays. Starting from the basic stuff like money laundering and going on to drug and weapon trafficking and so on.

However, the latest report by the US Drug Enforcement Administration (DEA) announced a significant decrease in the use of Bitcoin in criminal activities. As representatives of the agency noted, only 10% of all transactions are related to crime, while their aggregate volume has grown substantially, Bloomberg reports.

As stated by DEA special agent Lilita Infante, over the past five years the number of legal Bitcoin-transactions has exceeded the illegal ones.
“The volume of [transactions] has grown significantly, and their number has also increased. However, in percentage terms the number [illegal transactions] have decreased,” she said.

Such data, Infante said, had been obtained as a result of an analysis of the blockchain data, which DEA ​​started in 2013 after it drew attention to an increase in the use of the Bitcoin in the cases under investigation.
As of today, she says, only 10% of transactions are related to criminal activity; basically the Bitcoin is more used for speculation.

Lilita Infante is also a member of the US Department of Justice’s Cybercrime Investigation Unit. The group consists of 10 people and focuses on the darknet and investigation of cases involving crypto-currencies.
Statements that criminals choose cryptocurrency as an alternative to cash, using it for money laundering and terrorist financing, have long been heard by critics of Bitcoin. First of all, this applies to representatives of central banks, who also regularly repeat the mantra about the “anonymity” of Bitcoins.

The last statement, as is known, is far from the truth, moreover, as Lilita Infante says, even if less liquid coins like Monero and Zcash give more anonymity, its department can cope with this challenge.

“The blockchain gives us many tools for identifying people. Truth be told, I would like that they continued to use crypto-currencies, ‘she added.

Back in July, US President Donald Trump signed a decree on the creation of a working group, whose tasks will be, among other things, the investigation of crimes committed using the Bitcoin and other digital currencies. The crypto industry is mentioned in the context of fraud, the fight against which is one of the priority tasks facing the US authorities.

Time goes forwards, and governmental positions regarding digital currencies are still strict, but the reality check is always useful when making statements about cryptocurrency involvement in fraud and crime activities.

2018   Bitcoin   Blockchain   Crime   Crypto industry   Fraud

Art & Blockchain

The humanity has been producing art of different kinds since the times immemorial. From the simple cave paintings to the works of the Renaissance period – through the centuries, artworks had become more and more distinguished and sophisticated, new genres appeared and mixed, a lot of prominent artists had influenced the entire generations.

Though the nowadays present questionable forms of artworks, the classics are still a top.

Moreover, these days of digitalization taking over literally everything and blockchain technologies getting involved in daily lives.

The question is – how the new form of technology advancement can help with the today’s problems or improve our experience on a specific stage?

One of the latest recent trends is the blockchain – from the collectible and valuable digital kittens and meme trading cards fetching prices of over $100,000 to artificial intelligence (AI) driven artwork, the blockchain technology has now become another art world trend.

Co-owning of the pictures of Van Gogh, Picasso and so on can soon become popular – impressive enough, with the help of blockchain one can touch the eternal without having to pay astronomical amounts of money.

For example, each picture is divided into pieces. Depending on the picture or pieces size, their amount can vary from 1,000 to 10,000,000 or more. The participant of the project can buy any number of pieces and become one of the co-owners of the picture. Imagine that one can visit the exhibition, see the picture and feel closer to the great work of art – the paintings like “Sunflowers” by Van Gogh or “The Night Watch” by Rembrandt? Digital solutions make the classic pieces of art even more accessible to achieve now.

Blockchain art consists of more than just slapping a piece of art online, however. There are a few things you should know about this emerging market and how it’s changing the artwork for the better.

The Art: ways of blockchain use

Among the approaches used by the today’s digital artists, there is a different way of engaging the blockchain into the industry. Some artists produce stuff in which the blockchain is a subject while others are simply using the technology in their creations.

The Art: blockchain-used

However, beyond the collectibles, artists are finding other ways to utilize blockchain technology for their artwork. One example of this is the Scarab Experiment, which combines artificial intelligence (AI) with tokenized memberships to create one piece of art from the combined 1000 submissions of community members. Once submitting the art piece, an investor receives a tradeable Scarab token that gives you voting rights for what artwork the project includes.

The Art: blockchain-based

Although not built with the blockchain, numerous works of art use the technology as inspiration. Recently, the first-ever publically commissioned Bitcoin monument was erected in Kranj, Slovenia. Citizens of the city submitted ideas for the memorial via Facebook, and officials chose Bitcoin because of the region’s ties with the industry.

Going from there, blockchain has also influenced Bitcoin graffiti art, renditions of Satoshi Nakamoto, and even the Last (Bitcoin) Supper.

The Collectibles

Not the least is one of the most popular forms of the blockchain art like the collectibles – the CryptoKitties and Rare Pepe trading cards have garnered a cult-like following.

These digital pieces of art are directly created, stored, and traded on blockchain platforms like Ethereum and Counterparty.
However, the rareness of each collectible is what drives its value and price. You can quickly pick up collectible blockchain art for as little as $5, but some pieces have price tags of over $100,000.

The Art: Verify & Track with blockchain

One of the vital points that rate essential enough is not the creation of art – authenticity approvement of rare things. Due to the conducted research, The Fine Art Experts Institute (FAEI) in Geneva stated in 2014 that over 50% of the artwork that they examine are either forged or misattributed to the incorrect artists. With pieces in the fine arts market selling for tens or even hundreds of thousands of dollars, it’s essential that one buys exactly what they want to.

Similar to blockchain’s use in agriculture and supply chain, one can use the power of public immutability to maintain art’s integrity. Meanwhile, some projects are working to tokenize art provenance. Blockchain art provenance is a method of proving the ownership of original creations via blockchain.

How does this work? Simply enough:

An artist creates a new piece and certifies it with a token on a blockchain.When one purchases the artwork from the artist, they transfer the associated tokens.When one sells the piece, the token are transferred to the buyer.

The token transactions are stored publicly, so the buyer can easily track the entire history of ownership back to the artist. If the token doesn’t originate with the artist’s wallet, the artwork is a fake.

This process can be used for physical pieces of art as well as digital works sd they are easily reproducible, associating them with tokens preserves their rarity which, in turn, retains their value.

The Art: Eliminating the intermediaries

The blockchain art market is best at making middlemen obsolete. Decentralized art galleries are popping up left and right giving most (if not all) of sale proceeds to the artists.

For example,Curio Cards are GIFs and images tied to Ethereum in which artists receive 100% of their sales. Because the cards are on the blockchain, you, as an artist, can choose exactly how many you want to sell. There’s no need to worry about copying, forgery, or substantial fees. This opens up a whole new world of monetization for digital artists.

Even with physical works of art, galleries are using blockchain. Maecenas is a decentralized platform that democratizes fine art. If you’d like to get involved with art investing but don’t have the bankroll to purchase a multi-thousand dollar piece, this platform is for you. On Maecenas, you can invest in a portion of the artwork using the platform’s ART tokens. Additionally, to finance new pieces, galleries can list their artwork to Maecenas users at a fraction of the cost of what an auctioneer or loan would cost them.

The Art: The Blockchain market

If you’re a collector, creator, or just a casual observer, art’s blockchain revolution probably affects you in some way. Even in this rising industry, there are still plenty of ways to get involved and stretch your creative muscles.

Conclusion

Nowadays we witness the widespread of the blockchain which results in the improvement of many existing fields of human activity, opening new horizons while broadening the existing ones and going over the borders with the innovative technology.

2018   Art   Blockchain   Crypto industry   Fraud   Market

Alcohol industry blockchainization

Alcohol consumption is as old as the humanity itself. There is no way that the civilization will some time in the future give up this habit. and the history had shown us that the different prohibitions are definitely not a solution.

The humanity drank, drink and will continue to consume alcohol in the foreseeable future. Nowadays, the alcohol industry is growing at an undeniably high rate.

This industry includes bar merchants, suppliers, wholesalers, and producers. Due to QYKBAR’s data, the industry grew to an estimated $1.25 trillion in 2016. Considering its current pace, the production is expected to hit the $2 Trillion mark by the year 2025.

The blockchain technology popularity and worldwide adoption grows and has already been implemented in various fields – financial sector mostly, as well as healthcare, logistics, artificial intelligence, new technologies and developments and much more.

Various issues with providers throughout the supply chain exist as well, and it is currently difficult to establish accountability with so many stakeholders involved.

Nowadays, the blockchain tech approach represents a solution for this crisis in the form of smart-contracts that would serve to stabilize this volatile marketplace. Applying blockchain technology and the use of a public ledger that cannot be tampered with, each link in the supply chain would be held accountable. Improved efficiency and greater transparency can be achieved as the result.

Transactions that are currently subject to currency conversions and delays would take place in the specific cryptocurrency, further streamlining the process.

It seems the time has come to use the technology in the production field – particularly the alcohol industry.

Current attempts to bring the market and production together is aimed for solving numerous existing problems of the market and production:

1) The counterfeit problem. According to various studies, 30 to 60% of alcohol nowadays is fake.

2) The issue of product promotion by manufacturers and the decline in the effectiveness of traditional advertising formats.

Fact is, the 1989 year Directive, which is in full force in all countries of the European Union, restricts the way in which information on alcohol is provided. Some states have imposed a total ban on the promotion of alcoholic beverages in Europe, including France, Norway, Russia, and Ukraine.

3) The problem of vast alcohol range choice for consumers. Also, the consumer does not have the opportunity to quickly get acquainted with the variety and prices in different stores.

Considering these problems, specific steps need to be taken to develop the industry and move it on the next circle of production, efficiency, and security.

The unique encoded NFC-tags used for each bottle and specific blockchain tech may help, as the alcohol manufacturers will be able to protect their products from counterfeits and, as a result, increase their product sales and profits of their company.

The mobile application development will be required to be able to verify the authenticity of the products, obtain information from the moment of production until the goods hit the store, aswell as to track availability and prices in the nearest stores.

Blockchain tech can also help the alcohol manufacturers to directly advertise their products at the time of product selection by the end user, showing any information encoded in an NFC-tag (cocktail recipes, ingredients, production method). Moreover, they will be able to create loyalty programs for their customers, use big data to collect information and get targeted at 1,022 metrics, which will increase sales and increase customer loyalty to its brand.

Providing the platform for consumers of alcoholic products reviews, where they could post & read reviews of other users. The artificial intelligence platform will show recommended drinks based on the user’s preferences and experience. Moreover, the consumers can also participate in vendor loyalty programs and receive a reward either in tokens or fiat currencies for writing reviews of alcohol products, depending on the user’s rating and the number of likes of other users.

The industry market size & future

It is estimated, that the current average consumption rate of alcohol per inhabitant of the planet is 6.6 liters of pure alcohol per year, an average of about 60 bottles a year. World consumption number stands on about 450 billion bottles of alcohol per year. The cost of each NFC-tag is 0.06 dollars. The volume of the NFC-label market for alcoholic beverages could be $ 27 billion per year.

Moreover, the recent research indicates that 55% of the inhabitants of the world used alcohol at least once in their lives. The number of potential users of the system is 4.125 billion people. 5 billion people have mobile phones, 80% of them use smartphones that can read the NFC-tag.

There is a global trend both for the use of NFC-tags (the market grows annually) and for protection against counterfeiting, states are obliged to label their products at the legislative level (Bar-codes, QR codes, NFC tags, etc.). IBM company also announced the development of a chip to protect against counterfeit products in the field of drugs, cosmetics and so on.

The identifier itself (NFC-tag) cannot be faked, as it will be produced at the factory and the information will be encrypted in the blockchain. One label can be used in the blockchain only once.

Current existing and future market solutions

There are already blockchain platforms operating in this field. For example, the “Wabi” in China, which focuses on establishing protection from counterfeit products, but it is aimed at the Chinese market exclusively rather than the whole world. IBM is developing a chip and plans a system of protection against counterfeit products in the field of drugs and children’s products. OinSpase conducts a project to protect against the control of the production of QR codes. VeChain (Singapore) solves the problem of counterfeits of luxury goods and product safety for different companies.

The future steps in the vineyard

The world, however, doesn’t escape lightly as verifying authenticity had become as essential as never before – but on a massive scale.

For example, the sales of Pinot Grigio exceeded the amount grown in the 90’s. So what made up the shortfall? Moreover, there had been recent scandals involving Brunello company. Sadly enough, there are plenty of other incidents occured. Fraudsters substitute cheaper inferior wines, cut them with water or use food additives – including even adding such added dangerous chemicals as Diethylene Glycol and Methanol which actually did kill people.

Nowadyas, one of the latest examples regarding alleged fraud involves the large French wine bottler, Raphaël Michel: Carrefour has canceled their supply contracts. The allegation is that part of this scam included passing off as much as 300,000 hectolitres (over 3m cases) of wine classified as cheap Vin de France as far more expensive Côtes du Rhône and Châteauneuf du Pape.

To avoid this, growers could attach an independent DNA fingerprint, Isotopic data, smart sensor data or chemical analysis to the initial Blockchain transaction executed through the specific smart-contract. However, the verification of wine quality, safety and origins are possible from grape to glass.

Moreover, blockchain is being implemented into many projects related to this field – the bars based on the blockchain, the crypto solutions for alcohol logistics, distribution and so on. Well, the future of alchool industry looks bright and sparkle with the blockchain.

2018   Blockchain   Crime   Crypto industry   Fraud   Future

Gangster-powered ICO: Money laundering in blockchain industry

There are endless efforts of how fraudsters lure out the investor’s money. With the digital age, this activity had acquired new trends and options. With the blockchain technologies, the perfect tool for it became to be known as ICO.

Being developed to help provide the funding for the Internet-start ups which used such crowdfunding services as Kickstarter and Indiegogo before with the help of the new elements and securities, and digital money, over time this model began to be overused by criminal of all kinds due to its hype and convenience.

Recently, the news came around about the super-successful ICO of the former member of the Triad of Macao Van “Broken Tooth” Cup-koy. South China Morning Post officially reported that the gaming industry start-up held the initial placement of HB coins collecting $ 750 million within only 5 minutes.

However, 450 out of 500 million HB tokens intended for the general public have been sold, and the total amount of issued tokens is one billion HB tokens will be released.

At all, three events had been arranged by the same person – Wang. Initial token sale stages had been held in such locations as Cambodia, Taiwan, and the Philippines. Moreover, the people invested are known to be the senior government officials, military, celebrities and people in business from mainland China and Hong Kong, and the last round was held in Malaysia.

Also, it is known that the investment company Wang World Hung Mun Investment concluded a partnership deal with the Beijing firm Zhonggongxin Cosmos Internet Technology Limited, which includes, among other things, asset management and construction projects in Russia.

According to rumors, the parent company of Zhonggongxin Cosmos belongs to the state. However, it’s employees, incidentally, give conflicting answers to questions about the owners of the company.

Moreover, it is reported that Zhonggongxin Cosmos engaged in gambling – in online games in poker and chess. The stated prize fund of the tournament is about $ 1.5 million. Interesting is that the payments will be provided in both the traditional fiat currency as well as nd HB tokens. Moreover, it is noted that in China there is no law prohibiting the use of cryptocurrency as a prize.

The suspiciousness is also raised since the HB cryptocurrency is not provided with the tokens source code and detailed information about the technology. At the moment, the HB coin is traded on the Allin (a.top) exchange launched year by the Hong Kong-based All In Group Limited earlier this year.

The person of the day itself, Wan itself, is known as “Broken Tooth,” a former boss of the dominant 14K Triad that has figured prominently in China and Southeast Asia for decades, spent 14 years in a Malaysian prison for his organized-crime activities before being released in December 2012 for several wicked crimes.

The HB cryptocurrency itself is known to be issued by the shady Chinese company World Hung Mun Investment, and that’s to be among the Wan’s property.
Wan announced the new HB crypto coin in a splashy series of events in Thailand, Cambodia, and the Philippines, with a fourth launch-related event scheduled for Malaysia early this week. Wan’s company plans to sell a billion of the HB coins, which will also be used as the framework for online-gambling offerings. The company plans to pay the winners of its live poker and chess events either entirely or in large part with the HB coin; some smaller portion of the prizes may be paid in cash as well.

The companies’ plans for live poker and chess tourneys throughout China is slated, to begin with, a major poker event in the Chinese city of Hainan this October. That initial event was announced by Zhonggongxin Cosmos (Beijing) Internet Technology Limited, or Zhonggongxin Cosmos, for short, which also announced a deal with Wan’s World Hung Mun Investment a few weeks back. Zhonggongxin Cosmos’s back.

However, exactly how all this online crypto and online/live gaming events will work out in the wake of China’s recent ban on all Texas Hold’em smart-device apps remains to be seen. Oddest of all in this strange tale is that Zhonggongxin Cosmos appears to be claiming at a deal with China’s government to allow these events to proceed.

On its website, Zhonggongxin claimed to be reporting directly to an advisory committee under the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) called the Advisory Committee on the Management of Financial and Energy Resources and Capital.

No matter, what the Zhonggongxin Cosmos’s true nature is, the whole deal looks like a big-time criminal scheme. The HB is already regarded as “suspiciously vague” cryptocurrency, and the existing code gives no idea of how many coins are created.

The launch and gaming tours are also receiving pushback from many of China’s regulated gaming firms. According to Su Guojing, the founder of the China Lottery Industry Salon, “When chess and poker games are paid with tokens such as cryptocurrencies that can be converted to fiat currencies, it becomes a disguised form of gambling in China.”

Moreover, the suspicions regarding the operations to be the money laundering are going to arise due to how the money transfers within the crypto’s exchange framework will occur still a question.

How to catch the Bitcoin whale – fraud schemes explained.

In the crypto world, Bitcoin-whales are considered to be the people who have thousands of precious coins on their wallets. As it turns out, there are not so much of them.

Quite recently, Chainalysis “scanned” the entire network of the first cryptocurrency and found that only 1600 accounts contain more than 1000 BTC. Probably, several of them belong to Satoshi Nakamoto, which everyone knows about, but nobody has a clue about his personality.

Nevertheless, many people who bought Bitcoin many years ago for tech experiments or just for fun had become very rich last year due to cryptomarkets rising – a lot of multimillionaires and even billionaires had appeared suddenly. Even some of them managed to get to the Forbes list, this kind of people mostly tend to stay in the shadows.

Not all of them are active participants of the community or businessmen. Of course, some of them just withdrew some money for classical entrepreneurship, luxury goods, travel and other things that can be bought for cash.

However, when you trade 30, 50 or even 100 BTC, you are not concerned with security and legality from the law are your problems, and when you need to exchange 1000-5000 BTC, it becomes the problem of governmental and regulatory authorities.

No wonder that real criminals – drug lords or terrorists have their own established channels of financing and money laundering, and lawyers have their own methods of destroying such channels.

Let’s imagine that you’re the good guy here and you need to deduce a tremendous amount of money of a 4000 BTC for example. Even considering the bearish lawlessness in the market, it is more than $ 25 million at the current exchange rate. Do you start thinking if it is possible to arrange everything in offshore zones? And of course – how and where to find such a buyer?

In 2015, sophisticated fraudsters took care that the answer to the main question had become the following. We call it a conditional harpoon cannon because of this time attackers aimed at single whales, not organizations like exchanges or e-wallets.
At first, scammers throw their networks into the necessary information flows, which are used by community members. The story they tell always has same contours and diverges only in non-essential details.

A particular person “with great experience in concluding international crypto-currency transactions” has a “large buyer” who is ready to buy 10 000 – 20 000 BTC at a price of -5 % shall we say of the Bitfinex price. And the task of an “experienced intermediary” is to find a seller or sellers. Then they will be invited to meet in such cities as Vienna or Zurich to make the necessary transfers of tete-a-tete. Besides, to scale this scheme, intermediaries attract other intermediaries, promising the recent commission, which gives the system a pyramidal character.

The most known and rich cities often are used for such crime schemes.

One might think that the most bitcoins-whales are intelligent people and will feel wrong, but scammers are incredibly persuasive, focusing on details and nuances, demonstrating imaginary professionalism. And what can happen to a man in a wonderful Switzerland, a country of bank secrecy, luxury, and security? It is the names of cities that create the so-called luxury effect so that the story of a large buyer seemed believable.

The overall scheme is quite simple: the sophisticated fraudsters could arrange a change of suitcases with cash or any other virtuoso trick to convince the seller that he received money without actually receiving anything – not even weapon threatening is required.

There are also thoughtful raids of European law enforcement agencies, which take the issue of money laundering and violation of tax legislation very seriously. Even in Switzerland, where bank secrecy is akin to the biblical commandment, the transfer of a suitcase or sports bags with a massive pile of cash will cause suspicion.

All members of the community should remember that the Bitcoin-industry has attracted the attention of not only hackers, talented crackers of digital systems, but also good old thieves from the area of classical crime. They can come up with dozens of methods for identifying and robbing whales, but the latter should always be a step ahead, and certainly not to be fooled by such infamous schemes.

2018   2018   Bitcoin   Blockchain   Crime   Crypto currency   Crypto industry   Fraud

The Dangers of Darknet

Numerous articles had been written on how the blockchain will change the world to better and why cryptocurrency assets are the future of the financial industry.

However, while admiring the current and future benefits of usage, the digital money also has the other side with its malicious nature. The fraudsters, hackers and different criminals use the topcoints and altcoins for different activities forbidden by the law. So, the common public knowledge is often influenced by the unfavorable market situations and overall despair against cryptocurrency are getting worse.

Quite often media highlights the dark side of the crypto world and make the public opinion regarding cryptocurrencies look like facilitating criminal activity. Actually no wonder that being the top coins at the moment Bitcoin, Ethereum, Monero, and a few other assets are the weapon of choice for the digital fraudsters and cybercriminals during these years of crypto market fever. Of course, the governmental bodies and special commissions are up for changing that as they present more and more strict regulation measures and laws, but the current situation will not change in the nearest future.

Going on with the explanation, there are a quite a few reasons why cryptocurrencies are so attractive to the fraudsters these days. No real names are being used, and the wallet address is convenient for hiding your real identity, which makes the personality disclosure a hard challenge.

Next thing is the volume of transactions. The global worldwide networks take a lot a massive load due to everyday growing number of transactions, and that makes the finding of the fraud schemes a tough challenge.

Even considering the popularity of cryptocurrencies, the so-called Darknet existence is still bad news for the many crypto enthusiasts of this industry as not many newcomers are aware about the crypto realm shadow side. But the highlights are often come to this area, as the cryptomarket rise thieves the activity.
The main points that drive the fraudsters methods popularity are the anonymity and privacy.

Due to the latest researches, over the 95% of illicit activity on the different darknet nowadays had been produced using the Bitcoin. This is of course due to the most popular asset popularity, liquidity and value.

However, the Silk Road has shown the world how the darknet and cryptocurrency can come together in meaningful ways. Perhaps people can remain convinced this was a positive development in general, and the public opinion looks very different these days.

The Darknet itself is a place, mainly speaking, where one can get any items strictly prohibited by the law and get away with it after.

The main points of user interest include such things as illegal drugs acquisition, black market guns trade, fake documents and IDs of any kinds, all sorts of explosives, secret files disclosure, porn content of all types, going on with the nasty stuff like that from there.

No wonder that the Bitcoin is the most liquid instrument for this kind of activities, and it will likely remain for some time.

Speaking about official statistics, it is known that 2016 had almost 14,000 cases related to the drug and other illegal substances. Therefore, over 1,400 people engaged in this type of activity until police officials around the world actively began arresting vendors and buyers globally. It is estimated in 2016 more than $1.3 billion of the worth of profits for drug sellers embracing cryptocurrencies was the actual number. Considering the crypto market popularity rises, no wonder that the official date of 2017 could present much more embarrassing and shocking data.

One thing is sure that the shutting down of such darknet marketplaces cannot change the situation significantly as the new platforms will arise pretty much soon. Same as with Hydra – you cut one head, the more appears. Much more drastic measure is to be taken by the world governments to change the situation and make the widespread more closed and the acquisition of dangerous prohibited items – even more complicated.

2018   Blockchain   Crypto industry   Daknet   Fraud   Future