California’s CipherTrace says crypto crimes surge in first 5 months amid pandemic

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California’s CipherTrace says crypto crimes surge in first 5 months amid pandemic

CipherTrace, the Menlo Park, California-based crypto intelligence company, which has been tracking crypto-related scam since 2015, said in a statement earlier this week that the company had found traces of pandemic-driven frauds that required payments in digital currencies.

Aside from that, a crypto-crime related report published earlier this week by the Menlo Park’s crypto intel CipherTrace had revealed that the losses from cryptocurrency-related hacks, frauds and thefts had already surpassed $1.4 billion over the first five months of the year, nearly a third of last year’s losses.

Nonetheless, without disclosing further details, CipherTrace was quoted saying in the report that the extent of crypto crimes was minimal this year compared to a year earlier, however, despite a decline in crypto-related scam amid the pandemic outbreak, this year’s financial fatalities from crypto-related crimes have been well on route to report the second-largest losses on record following last year’s record $4.5 billion in crypto-related casualties.

Crypto adoption rises as crimes soar

Besides, CipherTrace has also added in its report published earlier this week that the consumers were adopting digital currencies at an en masse rate, which in effect had led to the crypto-related backlashes, while speaking of examples, the crypto intelligence firm was quoted saying that the victims were usually lured away from legitimate platforms into specific chatrooms where the crypto-criminals usually asked for payments in bitcoins.

Meanwhile, adding that the pandemic-led crises had prompted many crypto-criminals to impersonate officials of legitimate entities such as Red Cross to extract personal data of millions of people around the world alongside sales of faulty protective gears and testing kits in cryptocurrencies, CipherTrace Chief Executive Officer Dave Jevans said in an interview with a press agency, “Consumers, investors, and users continue to adopt cryptocurrency at a massive rate and it is by far the fastest-growing payment system on the planet.

At one trillion dollars in annual payments, cryptocurrency payments have grown from zero to 7% in 10 years, making this volume of funds attractive to bad actors.