ICO – easy prey for cybercriminals
Crypto-currencies have faced a crisis of confidence caused by the growing number of cybercriminals. In two new studies, the security issues of ICO and the vulnerability of crypto currency to hackers were raised.
So, according to the information of the British audit and consulting company Ernst & Young, more than 10% of the total amount raised by ICO funds in the amount of $ 3.7 billion, were stolen as a result of cybercriminals. To steal money, scammers resorted more often to phishing, forcing investors to send their money to a false address.
A study conducted by the Russian Group-IB also showed that phishing is the biggest threat to investors and users. Cybercriminals, who used to rely on banks, now use the same tactics for crypto-cash ICO, which, as a rule, underestimate the risks related to security. According to Group-IB, online platforms ICO are attacked on average 100 times a month, and since early 2017 the number of hacker attacks has increased tenfold.
The insecurity of financial investments in the ICO market prompts the authorities of the world’s largest crypto-currency markets to tighten the regulation of this sphere. So, China and South Korea in September declared ICO illegal activity. In Russia, the bill regulating activities related to crypto-currencies is still being developed.