Are Cryptocurrencies Encouraging Cybercrimes?
There are a plethora of conspiracies that surround cryptocurrency and Blockchain fraud. Regardless of whether you believe the fact or not, these digital currencies are helping criminals. There is subtle evidence that prove four primary areas have been affected the most. They are tax evasion, money laundering, contraband transactions, and extortion. Not to forget these currencies are themselves quite vulnerable. Basically, cryptocurrencies have made a lot of mess for law enforcement agencies and it is almost impossible to stop Blockchain scam or cryptocurrency fraud.
So, the answer to if these cryptocurrencies are increasing crimes is, yes! They are. If we simply put the problems faced, we can conclude that the innovation of cryptocurrency has a plethora of positive impacts, but it has a dark side as well. In this, the most crucial behavior that is speedy and highly secured transaction with minimum exposure useful for us. However, these are exploited by hackers and people with malicious intend to carry out Blockchain scam that is a cybercrime.
Well, you don’t believe it, right? Let’s take an example. We cannot deny the fact that for criminals, anonymity is the most important facet. Bitcoin does not have the same level of confidentiality it once had. There are a few agencies which claim to have successfully developed tools to track various transactions. Also, researchers from University of Technology Sydney have found that 25% of Bitcoin transaction were indulged in illegal actions. But then, there are other cryptocurrencies for which no such tools have been developed. Monero is the best for them, in the attack of 18th december 2017, the cybercriminals targeted approximately 190000 sites to collect it.
Will the Law Enforcement Agencies ever be Able to Control this?
A cybersecurity firm in UK named MWR InfoSecurity has conveyed that with ever growing demand in the digital cryptocurrency market the Blockchain security, depth and liquidity are also affected. And thus, individuals who deal with cryptocurrencies have become competent enough to transact enormous amount without being noticed or causing price fluctuations within them. This very fact has made the security individuals alert as if this continues criminals active within the industry will always remain unchecked. They have even designed and deployed special software that is capable of screening those cryptocurrency transactions which may have potential links to illegal activities. The organizations, namely Internal Revenue Service (IRS) and Drug Enforcement Administration (DEA) are said to be using these software for Blockchain security.
The Final Verdict
There’s no denying the fact that there is prominent connection between cybercrime and cryptocurrency. Hackers can easily mine cryptocurrencies from several hosts and the lack of understanding only makes them easier targets. As the backbone of cryptocurrencies, that is Blockchain is still in development phase, these activities can be carried out easily. The Blockchain experts have conveyed that once the system is ready, these activities will not easy to accomplish. But then we will be influencing Blockchain identity management and hampering basic nature of the cryptocurrencies and cybercrimes.
Also, the crucial challenge for regulators is to impose constraints on the Blockchain. It is a challenge because of quantity, geographic distribution and nature of the peer to peer system. Blockchain has definitely brought a new age but it is no less than double-edged sword!
We just hope that the we are defending technologies and software. With this the deeds of criminals will not stay hidden for long. What do you think?