- It was the First Coin Offering (ICO) – the first platform for digital coins – that cybercriminals used to start committing crimes online.
- After sending out the email, they provide a link to pay for the cryptocurrency of a startup and after receiving the payment they stop contacting, explained Stanislav Kuznetsov.
- Izvestia reported that fraudsters often use cryptocurrencies as a subject for developing pyramid schemes.
Stanislav Kuznetsov, the replacement Chairman of the Board of Sber, explains that one of the patterns of cybercrime is the development of scams involving cryptocurrencies. It was the First Coin Offering (ICO) – the first platform for digital coins – that cybercriminals used to start committing crimes online.
After sending out the email, they provide a link to pay for the cryptocurrency of a startup and after receiving the payment they stop contacting, explained Stanislav Kuznetsov.
Izvestia reported that fraudsters often use cryptocurrencies as a subject for developing pyramid schemes. According to the regulatory authority, such companies typically operate on international territories, which poses a challenge to financiers when they wish to recover their investments – after all, in an instance of litigation, the matter must be handled at the jurisdiction of the company’s registration. In the past, ICOs were often used to raise money for a “buzz” concept that few people knew about, as the Bank of Russia noted.
ICO Frauds have become very frequent
Fraudsters frequently imitate official networks or contact individual people for the purpose of gaining their confidence. The “main channel” can also be used to add an additional target, obviously a fake one.
Also Read : What Is The Difference Between An ICO and IDO,along with IEO,STO
In addition, such a scheme could make it difficult for customers to realize that they are dealing with a deceitful business because they look legitimate. Mikhail Sytnik, leading content expert at Kaspersky Laboratory, stated that hackers can use a secure connection (the web address begins with https://), need to register, and create an individual online purse for each new target.
The ICO is a method of raising cash through the issuing of a particular number of digital tokens by a blockchain-based startup to early investors before going public. As November 2021 approached, interest in ICOs grew against a backdrop of the growth of cryptoassets.
The crypto market capitalization surpassed $ 3 trillion for the very first time on November 8. The primary coin, bitcoin, rose in price to $ 69 thousand a few days later, on November 10. However, its price dropped back to $ 60.5 thousand by November 17, as reported by the Binance crypto exchange.
