Effect of cyber crime on cryptocurrency

What is cyber crime?

Cyber crime is defined as any illegal activities through the use of computers, networks or technology. In today's world the internet has brought about many new opportunities for criminals whether it be stealing peoples identities, credit card fraud or theft, however one form of cyber crime is on the rise and that is the use of cryptocurrencies such as bitcoin.

The reason why these forms of fraud are so easy to carry out is because they are not controlled by a single entity such as a bank or corporation, however they are in fact controlled by an open source network of individuals that do not have an owner, this makes them a very attractive target for cyber criminals. The reason why cryptocurrency is the number one target for these cyber criminals is because cryptocurrencies are designed to be anonymous, this anonymity creates a safe space for cyber criminals to carry out their illegal activities without being caught.

There are two types of cyber crimes in the cryptocurrency space. The first is the hacking of individual digital wallets where someone's funds are stolen. The other is more systemic and involves the exploitation of vulnerabilities in the code that runs cryptocurrencies, this happens when someone possesses a large number of coins and attempts to push the price up or down, depending on their intentions.

With the rise in cyber crime, cryptocurrency today is still a vulnerable option to store value in the form of digital currency. The rise in bitcoin price means that individuals and groups who have little or no skill can now become millionaires overnight by simply hacking into a crypto-currency exchange or by stealing wallets and holding them for ransom.

It is believed that at least $1.65 billion was stolen from exchanges in 2017 alone. This has directly contributed to the loss of faith of people in crypto-currency as a store of value and also led to a major drop in the prices of all crypto-currencies Bitcoin Cash included.

The answer lies in establishing a common ground where all stakeholders take responsibility for protecting each other from cyber criminals. This can only be done by educating, mobilizing and encouraging participation from all the stakeholders.

Yet it is possible to beat the crypto-crime wave and by doing so, build confidence around crypto-currency and achieve our common goal - extending financial inclusion to everyone in the world.

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