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Cybercriminals and scammers stole approximately $7.6 billion worth of cryptocurrencies around the world since 2011, according to a recent report published by Amsterdam-based blockchain analytics firm Crystal Blockchain. This staggering number is attributed to security breaches and fraudulent activities over the past 10 years.

Crystal Blockchain compiled a full and detailed report of all security breaches, fraudulent activity, cyber-terrorism, and scams involving cryptocurrencies between 2011 and 2020.

So far, $2.8 billion worth of cryptocurrencies has been stolen through security breaches while $4.8 billion has been stolen through scams between that time frame, according to the blockchain analytics tool.

The largest crypto security breach, according to Crystal Blockchain’s report, was the incident involving Japanese exchange Coincheck in 2018. The most popular method of crypto-robbery is the infiltration of crypto-exchange security systems.

Cryptocurrency crime grows as crypto markets rise

The evolution of the industry at a fast pace gives birth to more entities appearing on the market without enough internal security policies, Kyrylo Chykhradze, a product director of Crystal Blockchain, told Coindesk.

“Their security policies are neglected because these new services cannot (financially) afford to pay as much attention to such security issues, whereas well-established entities are in a better position to ensure and prioritize security,” he said. “This results in newer services becoming cherry-picking opportunities for bad actors who can spot those vulnerabilities.”

Crystal Blockchain found that the most notable type of cyber-terrorism uses a security breach in a crypto entity’s internal security systems, resulting in the illegal gaining of access to the crypto service hot wallets.

The number of cyber-terrorist attacks will continue to soar

The blockchain analytics firm said the number of cyber-terrorist attacks will continue to grow over the next couple of months and years. This is due to the number of blockchains growing every day, while methods and technologies utilized by fraudsters also continue to become more sophisticated and advanced.

SIM-swapping, a socially engineered hack wherein an attacker ports a victim’s phone number onto a SIM card they control, is on the rise, according to Chykhradze.

“But what has really changed and developed is the way that these criminals are laundering stolen funds. These entities scrutinize services to understand their [anti-money laundering/know your customer] policies as well as policies related to privacy coins in the service’s offering,” he said.

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