Fraudsters are exploiting blockchains and digital currencies

Fraudsters are beginning to find the cracks in the armor of blockchains and cryptocurrencies. Initial coin offerings, Simple Agreements for Future Tokens and fake currencies are vulnerable areas. Here’s practical information for warning your organizations and clients.

When email was first introduced to the world, most thought it would to be immune to fraud. Of course, that was only wishful thinking. Now we routinely deal with ransomware, business email compromises and hundreds of phishing attempts. Sometimes, new technologies can seem to be fraud-proof only because we don’t completely understand them. Or the security around the technology hasn’t matured enough so bad actors can exploit them for lucrative payoffs. The more popular and fashionable the supposedly immutable and tamper-proof “blockchain” becomes, the more fraudsters are comprehending it and taking advantage of its weaknesses.