Crimes in the finance sector are pretty natural and frequent for these hackers and scammers find something or the other vulnerable every other time. The same has become the norm in the crypto market too. But, the reasons are a lot more as compared to the financial market when it comes to cybercriminals finding it easy in the crypto market. As more and more people are entering the crypto space, the prospect and scope of earning undue money have been increasing for these online frauds, scammers, and cybercriminals have been consistently increasing.
As a matter of fact, the crypto market is vulnerable to scams and hacks and it is easier for these criminals to get their work done without getting caught. Have you been trying to protect your crypto assets from these kinds of financial crimes? In addition to knowing the ways these crimes are pursued, a little more knowledge about the market, its vulnerability, and the scammer’s interest can help you gain more knowledge and be ready for any challenges. This article is a right attempt in that exact direction. Hence, without any further ado, let us jump into it right away.
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Reasons why the cryptocurrency is vulnerable to cybercrimes
1. Lack of regulations
As a matter of fact, the entire crypto market lacks regulatory mechanisms across the globe. Of course, some nations have accepted the cryptocurrency in their countries yet they have not sorted the regulatory policies. Lack of regulatory mechanisms makes it easier for cybercriminals to hide under the veil of anonymity.
Already cryptocurrency runs on blockchain technology, which facilitates concealing of personal information despite it being a public and decentralized ledger. But, the privilege and comfort of hiding under anonymity prompt and motivate more and more cybercriminals to try their hands in this space.
Participation, investments, trading, and all other activities happen in an open-source environment. In addition to a lack of regulatory mechanisms, you don’t need to produce documents or identity authentication to get into the digital market. You are just a click away from entering it. Almost all of the participants in this space operate more or less in the same manner. Plus, to someone who is rather looking for ways to barge into space, all these are merely restrictions, which they don’t anyways care about. Hence, this is one thing that makes it easier for cybercriminals to enter these undeterred territories.
3. No one to punish
Cryptocurrency and blockchain spaces are unsupervised territories. There is literally no one to keep a check on the financial space. Even if something happens in a similar manner, there is no one to take care of the same. It is difficult to trace and identify the criminals. Hence, a lot of cases mostly go unnoticed. It motivates cybercriminals to do more of these activities.
Hence, you may get to hear more and more people entering into this space and leaving while cheating a lot of people behind.
4. Difficult to find
For example, if someone is scamming you or cheating you, it is very difficult to find those scammers and cheaters. Since the identities of people and investors and traders or even cheaters are concealed on crypto platforms (that’s how it works on any platform for that matter). Thus, it becomes easier for them to target investors and traders on these platforms. On successful execution, there is literally no way to trace them. Plus, there are a lot of platforms for them to venture into and amass undue wealth.
5. Privilege of anonymity
As has been mentioned above, there are innumerable platforms for traders, investors, and other participants in this field. All of them have the privilege of anonymity. No single platform asks these people to produce documents or proof of identity. This again motivates the cybercriminals to venture into these deep waters. No matter what happens, even the higher authorities or the tech brains behind the software and the platforms do not have a way to find these people for the crimes that are happening.
6. Security gaps
There are a lot of gaps, although almost all crypto software and platforms are robust in security. Most of the time, they provide two-step authentication, gateway entrance, and other similar security mechanisms. Yet, cybercriminals take advantage of the already available security gaps. Even the software professionals and tech brains behind these platforms do not realize and identify these gaps persisting from the beginning. These gaps become vulnerable and potential gaps for the cybercriminals to potentially tap into them and rob the precious and hard-earned assets of the participants present on these platforms.
Who doesn’t value assets? Scams, frauds, and similar activities happen where there is monetary value and the crypto market is not an exception. There are a lot of advantages because of why these cybercriminals are having it easier in the crypto market. The above-mentioned reasons are just a few. Regular financial and economic markets are robust and under regulatory supervision. Despite this, these criminals find it hard to imagine how much easier it is for them to get into unregulated depths.
That is why the crypto market is easy for them. the chances of getting caught are low. The chances of revealing their own identity are even low. Plus, it is next to impossible to trace and catch the culprit. Where does anyone find so much security? Hence, they find an obsession with cryptocurrency.