Hackers Have Stolen Over $2 Billion from ICOs, Cryptocurrency Exchanges: EY Report
With Blockchain-application based tokens and cryptocurrency driving consumer animalism for quick money, how can hackers be far behind? Driven by the gold rush, hackers accept stolen more 10% of the total capital raised during initial money offerings (ICO) effectually the world says EY. And that's non even counting the number of cryptocurrency exchanges who faced astringent attacks and losses in the year.
The experts atEY accept published a new report which looks into the risks of online cryptocurrency investments and has declared that $400 1000000 were siphoned off by hackers from ICO rounds in 2017. The business firm drew this conclusion after analyzing more than 372 ICOs used past cryptocurrency enterprises and exchanges to raise capital for their digital currencies.Crypto exchanges take an average of US$two billion in hacking losses, says EY.
The consultancy reports the factors which concenter hackers include the huge amounts and the high rate of investment transactions. The boilerplate rate of investment for the 10 fastest ICOs has been in the range of $300,000 per 2d while "Brave" ICO by Mozilla's ex-founder clocked $1.1 one thousand thousand per second, amassing $35 million in simply 30 seconds. Now, that's fast enough to turn heads.
EY states that the most common method of demolition was phishing, and the inquiry notes that $1.5 million was claimed by hackers monthly using real-like faux web pages. Due to ease, these activities accept been on a rise since the beginning of 2017, the written report notes.
The report highlights that security is often sidelined during such rounds of cryptocurrency crowdfunding. Hacking also results in other losses such as the loss of business or personal data, and brand and currency reputation, which immediately tin can cause devastating losses for those who invested. Other ways of attack include DDoS, hacking of wallets, and attacks on the IT infrastructure too every bit employees of the target companies.
The news of such attacks has also dampened the interest in ICO. EY notes that despite the skyrocketing of cryptocurrency prices, ICO filings slowed down during the second half of 2017, failing from ninety percent average competition in June to 25 percent in November. This beside warnings and crackdown by national regulators and watchdogs has increased hesitation and dubiety for those willing to invest in this glorious artifact of digital abracadabra.
EY also cites that many companies have been jumping on the digital token bandwagon without actually having blockchain-relevant technology, services or products, driven merely by the "fear of missing out" or "FOMO" from being among the start engineering science companies to offer decentralized offerings. These companies are also more susceptible to hacking and loss of funds occurring thereby.
Source: https://beebom.com/hackers-stolen-over-2-billion-ico-cryptocurrency/
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