There's a lot happening in the crypto world these days, and not all of it is good. A recent incident in Calgary is a prime example of this. A series of arson attacks were reportedly linked to Bitcoin extortion attempts. As crypto payments become more common, are we seeing the rise of a new kind of crime?
The Calgary Incident
To give you the lowdown, Calgary police are on the hunt for a guy named Finbar Hughes. They think he’s behind some arson attacks in Hillhurst that happened last month. The cops say he was trying to extort Bitcoin from the residents of the homes he torched. And by torch I mean literally set fire to the place.
Around 3 AM on November 19, residents got letters demanding that they transfer Bitcoin to a specific wallet address. The fire service was quick on the scene and thankfully the damage was limited. Though, I can't help but think of the other incidents in Edmonton that were similar in nature.
The Bigger Picture
This isn't an isolated incident. Ransomware payments have been trending upwards this year. A report from Chainalysis noted a $10.7 million increase in ransomware inflows this year compared to 2023. 2024 is likely to be the record-breaker for ransomware payments.
This is where we have to remember that as digital assets go up, so do the risks. The need for crypto for banks and other institutions is becoming more pressing. We have to start thinking about how to maintain our crypto currency wallets safe.
Risk Management Challenges
The crypto sector is also facing significant challenges in risk management. Regulatory compliance is a major hurdle. Different countries have their own rules and not following them can lead to severe consequences. Take Singapore for example; they have a Sandbox approach that allows businesses to test financial products in a controlled environment.
The technological risks need consideration too. With new connections and dependencies formed in the financial system, risk management strategies are essential.
The Role of Crypto Auditors
This is where crypto auditors come in. They're crucial for making sure that companies are following the rules and keeping an eye out for suspicious activities. They can help identify things like approval phishing scams, where scammers trick victims into approving malicious blockchain transactions.
Summary: Protecting Your Crypto Wealth
How do you protect your digital assets? First, make sure your crypto currency wallet is well-managed. Protect your private keys and wallet files. Use hardware wallets if you can.
Second, be wary of phishing and social engineering. Extortion scams thrive on tricking people into transferring funds. Also, stay educated on common tactics used by extortionists.
And finally, back up your wallet data regularly and use strong authentication for transactions.
