How Hackers Steal Your Crypto Without You Knowing… And How to Prevent it. – George Levy
According to research by the blockchain analysis software company Chainalysis, two professional groups of cybercriminals are behind 60% of attacks on cryptocurrency exchanges, as a result of which they managed to steal about $ 1 billion..
The published report said that on average, for each hack, scammers earned $ 90 million and used a sophisticated system of transferring funds to hide their criminal origins. Analysts tentatively named these groups «Alpha» and «Beta». They note that the first is a huge structure with tight control and partly pursues intangible goals, while the second is less organized, but only driven by money..
After examining the transactions of the groups, analysts at Chainalysis found that Alpha was rapidly and intensively moving the stolen funds; during one of the hacks, 15 thousand transfers were made. They usually exchange 75% of the cryptocurrency for fiat within the first month..
Beta Group is in no rush to launder assets and waits 6 to 18 months before converting virtual currency. For the exchange, they usually use one trading platform, on which they withdraw more than half of the production in a couple of days. In one case, Beta cashed out $ 32 million at a time..
Both groups are very cautious and wait until interest in the topic of hacking dies down, continuously making transfers between wallets and exchanges during this period. According to representatives of Chainalysis, even the presence of advanced KYC and AML systems does not help in the fight against the withdrawal of stolen cryptocurrency..
The report also said that the cryptocurrency market crisis did not affect the activities of cybercriminals, since in 2018, during which the bitcoin rate fell by 80%, the activity almost doubled. Analysts predict that this trend will continue in 2019, therefore, they recommend that market participants implement the latest security systems..
In the fight against fraudsters, marketplaces rely only on technical tools, but also on users. Recently leading South Korean crypto exchanges have opened an anti-money laundering hotline.
text: Ivan Malichenko, photo: Getty Images