Kaspersky Labs Latest Research

The latest research by Kaspersky Labs has clarified that amongst the several cryptocurrencies, Ethereum is commonly used among scammers. These include the growing Ethereum giveaways found in almost every reply infamous cryptocurrency personality’s tweets.

Kaspersky Labs report stated,   “Ethereum (ETH) is currently the most popular cryptocurrency with phishers. The popularity of Ethereum with cybercriminals increases as more funds are attracted by ICOs on the Ethereum platform,” 

Ethereum the reason for cybercrime gains

Statistics from Kaspersky Labs proved that Ethereum was the reason for a lot of gains from cybercriminals.

“According to our very rough estimate (based on data received from over a thousand ETH wallets used by malefactors), over the Q2 2018, cybercriminals exploiting ICOs managed to make $2,329,317 (end-of-July-2018 exchange rate), traditional phishing not included.”

Ethereum is number two right now in the cryptocurrency rankings according to CoinMarketCap. It quickly gained to fame with the emergence of Initial Coin Offerings (ICOs) last year, which led to several scams due to fast gaining opportunities for investors. Thus Ethereum addresses are favoured to be for diverted funds, as ICO addresses fall in the Ethereum network.

Stuck in the mud

Ethereum has faced its worse situation this year, only a few hours ago when it touched $270, the lowest price has seen for over 8 months. However, it is now stabilising at $300.82 at the time of writing according to CoinMarketCap.

A user on Twitter by the handle of ’StewXRP’ a noticeable XRP fan commented sarcastically on the falling prices of Ethereum –

Boing Boing reported an interesting dialogue between Adam Guezbuez, a cryptocurrency evangelist famous for his Youtube videos and a scammer who makes almost $50,000 – $100,000 a day through Twitter hoaxes. The scammer apparently was a fan of Guerbuez which lead him to uncover how the internal scam operations work.

The ‘giving away free Ethereum’ scams on Twitter, apparently operate in small teams which are automated through bots. They tend not to use the verified accounts which appear in a blue tick as it is temporary before it gets reported and banned.

Twitter is already on the alert for these cryptocurrency related adverts however it has still not yet managed to solve the problem. Vitalik Buterin, founder and creator of Ethereum, has even gone to the extent of reporting the problem to Twitter’s CEO Jack Dorsey and the Ethereum development committee to solve the issue.

Closing Conclusions

In conclusion, Ethereum is still providing a way for scammers to operate and ICO’s to flourish. This is making it stand out compared to the rest of the cryptocurrencies.

Whether it is these reports or rival blockchain projects such as Tron are the cause for Ethereum to have a rough market spell is still unknown. A positive thing to take away is knowing that Ethereum is not alone in this overall industry market bloodbath.

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