Business Advisory Firm Expects Criminal Cryptocurrency Transactions to Fall by 30% by 2024
Gartner, an advisory firm, has predicted that criminal cryptocurrency transactions or transfers will fall by 30% by 2024. The firm says factors such as the transparency of the blockchain, as well as the democratization of fraud prevention tools, will contribute to this decline in such transactions. Blockchain Transparency
Despite the surge in the value of crypto-related crimes recorded in the past year, Gartner, a business advisory firm, predicts that “successful cryptocurrency thefts and ransomware payments will drop by 30%” in two years’ time. According to Gartner, such a drop will stem from “criminals’ inability to move and spend funds off-blockchain networks.”
In an article published on the firm’s blog, Gartner explains that this prediction is predicated on four main factors and one of such factors is the transparency of blockchains which renders them less than ideal for bad actors. In explaining why such transparency is key, the blog post states: Contrary to popular lore, cryptocurrencies are not a haven for anonymous criminals. In fact, armed with smart analytics, it’s easier to follow money trails on blockchains than it is on legacy payment networks, however a circuitous route they may take.
To illustrate this point, the article refers to the 23 blockchains which it says “make up approximately 99% of all blockchains’ market cap.” According to Gartner, it is easier to integrate the so-called anti-blockchain-fraud systems with the 23 blockchains than with thousands of enterprise systems and payment networks.
Although the turning of blockchain metadata into useful information might prove challenging, the advisory firm’s article concludes that when this is done properly it gives those going after criminals the ability to flag suspect payments and addresses. Democratization of Fraud Prevention Tools
Another factor, which according to the Gartner blog article will contribute to the decline in crypto crimes, is the democratization of fraud prevention tools that are currently being used by blockchain intelligence firms.
Increasing anti-ransomware measures imposed by governments, as well as the fact that most blockchain-related transactions go through regulated virtual asset service providers (VASPs), means criminals will increasingly favor moving ill-gotten funds through opaque legacy payment networks than via the blockchain. Tags in this story Blockchain, crypto crimes, Crypto Fraud, cryptocurrency transactions, Gartner, illicit cryptocurrency transfers, payment networks, Ransomware attack, VASPs
What are your thoughts on this story? Tell us what you think in the comments section below. Terence Zimwara
Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Crypto Tops Investor Threats for US Securities Regulators SECURITY | 6 days ago Spider-Man: No Way Home Torrents May Contain Crypto Malware, Cybersecurity Firm Warns SECURITY | Dec 26, 2021
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleMost Defi Hacks in 2021 Had to Do With Centralization Issues, According to Certik Next articleDock Launches Ambassador Program Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItNYCB and Group of Banks Join to Launch USDF Stablecoin
A group of U.S.-based banks is launching their own stablecoin, USDF. The stablecoin will be issued by the USDF Consortium, which will allow its members (financial and banking institutions) to issue USDF. The proposed stablecoin will be the first currency ... read more.Tesla Begins Accepting Dogecoin Payments — Some Merchandise Can Only Be Purchased With DOGE Kingdom of Tonga May Adopt Bitcoin as Legal Tender, Says Former Member of Parliament FTX Launches $2 Billion Venture Capital Fund Focused on Bolstering Blockchain, Web3 Adoption British Lawmakers Say a CBDC Is Likely to Hurt Financial Stability — Digital Pound Benefits Overstated