Cryptocurrency has been around for nearly 15 years but is an entirely different beast today than its humble beginnings in 2008. Bitcoin may be the household name in the crypto industry, but there are thousands of other cryptocurrencies in circulation, such as Ethereum, Ripple and Monero, for potential investors to trade and transact with.
Like all digital payment methods, however, cryptocurrencies are vulnerable to fraud. Bad actors stole more than 146 million British pounds (about $196 million) in cryptocurrency in 2021 alone, a 30% increase from 2020, and their schemes are growing even bolder over time. Five of the 10 largest cryptocurrency thefts of all time occurred within the past 12 months, including the largest attack in history, which stole more than $600 million in one fell swoop. Ironclad authentication will be vital in preventing these heists.
In the January/February “Alternative Payments Tracker®,” PYMNTS explores the latest in the world of alternative payment method authentication, including the ways that fraudsters attempt to scam cryptocurrency exchanges and how the use of customer authentication systems can help businesses of all types by reducing identity fraud without introducing new friction into the customer experience.
Developments From Around the World of Alternative Payments
A new report shows fraud’s damage to the cryptocurrency field. The study found that bad actors have stolen an estimated $12.1 billion in cryptocurrency assets since 2011, with the single biggest heist occurring last year when more than $614 million in cryptocurrencies was stolen in one fell swoop. All told, fraudsters have stolen $3.18 billion through security breaches, $7.12 billion via scams and $1.76 billion through hacks of decentralized finance (DeFi) technology. Ransomware attacks have grown popular in recent years, as have scams involving nonfungible tokens (NFTs).
Despite this risk of fraud, younger generations are investing in cryptocurrency in record sums. A study found that 83% of millennial millionaires own cryptocurrency, with 53% having at least 50% of their wealth in the currency. Nearly one-third of millennial millionaires had more than three-quarters of their wealth in cryptocurrency, with bitcoin and Ether being the two most popular options.
For more on these and other alternative payments news items, download this month’s Tracker.
How Travala Navigates Cryptocurrency Payment Acceptance
Cryptocurrency payments have seen a massive upswing in the past few years as they grow in value and consumers grow more aware of their privacy benefits. It comes with various issues, including long processing times and a risk of fraud, however.
In this month’s Feature Story, Juan Otero, CEO and co-founder of travel booking platform Travala, discusses how efficient and secure onboarding can enable smooth cryptocurrency payments.
PYMNTS Intelligence: Protecting Cryptocurrency Payments From Identity Fraud
Cryptocurrency is one of the fastest-moving trends in the financial industry, with more than 6,000 different currencies on the market as of the end of 2021. These same factors also make it an appealing target for fraudsters, however, as 2021 saw more than 146 million British pounds (about $196 million) stolen in cryptocurrency heists.
This month’s Deep Dive explores the various threats facing cryptocurrency exchanges and users and the authentication measures that could prove helpful in stopping them.
About the Tracker
The “Alternative Payments Tracker®,” done in collaboration with Socure, is your go-to monthly resource for updates on trends and changes in alternative payment methods.