Here’s what you need to know about cryptocurrency scams

Source: AdobeStock / James Thew

Cryptocurrency risk monitoring platform Solidus Labs stated that more than 10% of tokens with fraudulent characteristics are on Binance’s native BNB platform. Less than 10% were observed in Ethereum (ETH).

The research firm announced its real-time blockchain threat intelligence tool on Thursday, saying it was designed to help anti-money laundering teams combat threats. frauds regarding smart contracts, which the company describes as “one of the biggest challenges in (decentralized finance) Challenges AND Web3“.

Solidus Labs Anti-Money Laundering Service covers 12 chains, including Ethereum, BNB and Polygon (MATIC). The company says its new risk monitoring technology enables real-time analysis of smart contract fraud, as well as an off-blockchain view of the current state of cryptocurrency fraud.

Here’s what she found out:

  • 12% of all tokens BEP-20 in BNB blockchain shows irregular tokens;
  • 8% of all tokens ERC-20 in Ethereum they have anomalies;
  • An average of 15 new deployed scams are detected by Solidus Threat Intelligence every hour;
  • 188,525 fraudulent smart contracts were discovered on 12 blockchains covered as of October 10.

According to him Press release,

“Data published by Solidus find that a new pre-programmed scam user token is created on average every 4 minutes, and that illicit funds from these scams are often passed through and potentially laundered through centralized crypto platforms.”

According to this report, the current value of ath related to fraud that passed through centralized and/or regulated exchanges is estimated at $910 million.

The report explains that fraudulent smart contracts are cryptocurrencies that have been coded to steal funds from people. investors. These contracts can be set up automatically, but can also be easily replicated, “allowing serial thieves to rapidly execute thousands of small-value attacks without raising red flags to regulated exchanges, regulators and law enforcement,” the company explains. .

Smart contract attacks are part of a “growing list of typologies of violation of the cryptocurrency market”. Other forms of fraud include embezzlement, phishing attacks and token theft.

Solidus Vice President of Regulatory Services, Kathy Kraningerreportedly said, “While some of the big smart contract scams have happened over the past few years, most of them haven’t,

“Although some of the biggest abuses and frauds make headlines, like the infamous ones Sign of the squid games which would have cost users about $3 million in lost funds, the full picture drawn from our data shows that the vast majority of these frauds go unnoticed.”

Solidus said in its report released on Thursday that its data shows that more than 188,000 acquisitions have been deployed on Ethereum. The BNB chain and other blocks, which he says are “significantly higher than previous estimates.”

Source: Solidus Labs

Meanwhile, as reported, blockchain security company CertiKfound that embezzlement, which is a form of fraud that occurs when the owners of a cryptocurrency project abscond with the funds raised by their investors, dominated scams and exploits based on the Web3 world in August this year, but that the number of overall was still lower than in July.

Learn more :

Tether (USDT) freezes $160 million in assets at three addresses at the request of the authorities

Crypto assets can bypass US sanctions

Merge: beware of scams and fake profiles on social networks

A $190 Million Netflix Crypto Scam

Leave a Comment