Cryptocurrency – I Teach Accounting Information Systems

Think your crypto is secure?

Nomad is the latest cryptocurrency trading firm to be hit with a significant theft of its crypto assets. Last week they announced a $190 million theft of their digital assets. Nomad is not alone. In a report by blockchain analytics firm, Chainalysis, over $1.7 billion of cryptocurrency was stolen this year through May.

Hand with image of bitcoin — Photo by Worldspectrum on Pexels.com

There is a false sense of security regarding safeguarding crypto assets as they reside on the blockchain, which has long been touted as secure. Although the blockchain is relatively secure, many software applications automate the trading of cryptocurrencies. These applications are the weak spot for many blockchain operations. This opens the door for hackers to steal large amounts of assets without leaving a trace.

For more on the Nomad theft, see the article at: https://www.reuters.com/technology/us-crypto-firm-nomad-hit-by-190-million-theft-2022-08-02/

Think Cryptocurrency is safe? Think again.

“In 2019 alone, an estimated $4.26 billion in cryptocurrencies was lost due to hacks, cybertheft, scams, misappropriation or insider fraud, up about 250% from 2018.” Fraudsters have upped efforts to attack cryptocurrencies in recent years.

Fraudsters are using schemes such as: embezzlement, Ponzi schemes, phishing and ransomware.

Unlike other frauds, if a person loses cryptocurrency, there is no recourse or way to recover it.

For how forensic accountants can help, go to: https://blog.aicpa.org/2020/05/cyber-criminals-are-finding-ways-to-steal-your-digital-dollars.html#sthash.Sv5ebunY.dpbs