applancer Advertise

Annual Fraud Report by Kroll says Chinese are at greater risk of crypto-scams

Feb 01, 2018 Posted /  31553 Views

Annual Fraud Report by Kroll says Chinese are at greater risk of crypto-scams

No matter how bitter Chinese governments go on Bitcoin and other cryptocurrencies, cyber frauds owing to these digital currencies are at an all-time high in China as it becomes the world's second-largest economy to develop and adopt new technologies in the world. Additionally, the Chinese populace is known for its high rate adoption of new payment methods in comparison to any other nation.

Read More Related Articles

The Global Fraud & Risk Report released on Wednesday from Kroll, a global risk management company says that 88 percent of Chinese companies including those in Hong-Kong face cyber-related crimes or frauds in 2017, which is 2% above the international average of 86%.

“China faces an increase in cyber-related fraud as the country is rapidly adopting new technology and new mobile payment methods,” Paul Jackson, head of Asia-Pacific cybersecurity and investigations at Kroll, told the South China Morning Post in an exclusive interview. “These innovations have made it more convenient for the daily lives of the general public, but it has also led to new risks of cyber fraud and scams.”

The Head of Asia-Pacific cyber security remarks that Bitcoin and other cryptocurrencies are the favourite targets for the hackers and cyber-related fraudsters who are enchanted by the anonymity and the huge investments involved with these platforms. Jackson was also the former head of the Hong Kong's cybercrime investigation team.

Apart from falling for new payments methods and technologies, the Chinese were also found vulnerable in the use of e-mails, were almost 55% of respondents in the survey revealed that they were vulnerable to email-based phishing in comparison to 53% fall for data breaches. About 525 disclosed that they got vulnerable to money transfer frauds.

One report by FBI too detailed some similar kind of explanation. It stated that the amount of money lost to business email compromise frauds reached $5bln USD globally last year.  Violet Ho, head of Kroll’s Greater China investigations and dispute practices told that there is another commonly witnessed scam where the hacker phases into the e-mail system of a company and pretend to be official of some higher stature and tell the subordinates to transfer money to their personal accounts.

“Many of these monetary transfers were made in Hong Kong as the city is an international financial centre,” Ho said.

Jackson says that cyber-related crimes especially that pertains to cryptocurrencies will increase with time and will persistently affect companies in 2018 also as the companies are continually looking for innovative and convenient technologies.

“We have been receiving increasing demand from customers who want us to access new technologies to see if there are any gaps that could be exploited by criminals to commit a cyber-related crime,” Jackson said.

“This shows Chinese companies have increased their awareness of fraud and they have done a lot of work to prevent fraud and corruption from happening,” Ho said.

The experts reveal that Chinese companies suffer majorly from frauds related to the engagement of employees and other external suppliers.

“Many Chinese companies do not conduct proper background checks on their staff and lack sufficient supervision to ensure their behaviour after the hiring. Hiring the right people is very important for the companies to prevent instances of fraud.”

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

For more details on how you can submit an opinion or any news , view our Editorial Policy or email [email protected].

Tags: Fraud Crypto Scam risk management

Hottest Blockchain Newsletter

For updates and exclusive offers, enter your e-mail below.