nobl Insurance’s latest report highlights U.S crypto owners’ awareness and understanding of crypto crime, and the risks of falling victim to exchange hacks. The research suggests that, as of August 2019, approximately $100bn is held by U.S investors. Meanwhile, cybercrime has risen by 300% year on year since 2017 and remains on an upward trajectory – rising to 355 % year on year in June 2019.
nobl’s research exposes that the vast majority of crypto investors have very little real understanding of the scale of crypto crimes. 64% either don’t know how much has been hacked or believe it is a relatively modest amount of under $50m a year, not the much more sobering actual amount of $1bn.
When it comes to exchanges, 65% of all crypto owners believe it is quite likely their exchange could be hacked, and they could suffer a loss. It’s not surprising that it’s the many smaller crypto investors who are least concerned about security. In fact, 48% of those holding less than $1,000 lack any positive concern that a hack will happen at all. These investors make up a significant portion of the $100bn of crypto owned in the US and could stand to lose everything should the explosion in hacking continue. Upon learning the true scale of global crypto hacking, half the unconcerned smaller investors have a change of heart and become positively concerned about the security of their assets.
It’s not surprising then that investors, large and small, have welcomed noblCRYPTO – the hot wallet crypto insurance that protects them from a hack. Just over half (55%) would feel more confident in the security of their assets if they could buy noblCRYPTO through their exchange. And a staggering 86% would be more likely to use an exchange that offers noblCRYPTO than one without insurance protection. Looks like the investors of the future will be voting for insurance with their virtual feet.
Dr. Terry Lee Cooper, a leading cyber security expert who contributed to the report, projects that if an upward trend at the brutal rate of a 300% increase per year continues then, theoretically, a staggering $12.78bn would be stolen by the end of 2020. By the end of 2021 it could rise to $38.3bn, then to an excruciating $114.9bn by the end of 2022, more than the U.S currently holds in crypto. In real terms this would be enough to give a $348 tax rebate to every US citizen, or buy Uber.
Dr. Cooper commented on the sheer number of hacks and cybercrimes taking place “These are well planned sophisticated attacks. They are happening despite even the most impenetrable technologies, including those that power cryptocurrencies and blockchain. And worse yet, the culprits are getting away with it. Why? Because people don’t think it will happen to them. That doesn’t mean we sit back and do nothing. In my opinion, the best way to stop this modern-day crime is to understand that we all need to work together to make sure everyone knows how to protect and secure their online digital assets and passwords.”
The report highlights the cold reality of the threats the crypto community, marketplace and society could face. There is nothing ‘noble’ about cybercrime. There never has been. Though some methods seem sophisticated, essentially hackers are just common thieves whose weapon of choice are laptops. And when hackers steal hard working people’s money, that laptop can leave a trail of human misery behind.
As in the case of tech writer, Monty Munford, one of the unfortunates targeted by hackers last year, whose experiences have left him bruised, “It’s bad enough realizing that somebody’s nicked £25,000 of your hard-earned cash, but it’s even worse when you realize there’s little chance of getting it back. I am in mercenary mode and I think I’ve done my bit in bringing this subject the attention it deserves. I never used to be this man. I just want all of my money back- one way or the other.”
The co-founder and CEO of nobl Insurance, Brandon Brown, added, “There are thousands of undocumented cybercrime victims around the globe, with many others seemingly unaware they could fall victim to a hack. My hope is that reports like this will trigger everyone to make a conscious choice to do something. I believe insurance is a vital part of the solution, and that the crypto community, insurers, exchanges, traders, cyber security experts and lawmakers will all work together to improve security protocols and look out for each other. Otherwise, before we know it, our digital assets will be stolen right from under our noses.”