$540 Million Lost In Crypto Thefts In Japan, Just In The First Half Of 2018

By Boris Dzhingarov

Everyone that has been interested in cryptocurrencies for a longer time remembers that huge Mt. Gox hack that led to losses of 650,000. This was when Japan quickly learned about cryptocurrency theft and what it can do. However, even if the country is trying really hard to educate the investors and add some security, hackers do manage to get through.

Japan’s NPA (National Police Agency) released a report on Sep 20,2018 about cryptocurrency thefts that involved individual crypto wallets and crypto exchanges during the first half of 2018. The authorities highlighted that cyber thieves managed to steal $540 million during the first 6 months of the year, all in cryptocurrency. Stats showed that:

  • 158 theft instances happened. In 2017 there were losses of $6 million and just 149 security breaches.
  • $7.66 million were stolen in Bitcoin, through 94 hacks.
  • $13.5 million were stolen in Ripple, through 42 thefts.
  • $542,000 were stolen in ether through 14 thefts.

Unfortunately, 60% of the reported incidents happened because people were using the exact same ID and password for their online shopping, email and crytpocurrency accounts. This is something you should never do in the event you want to safeguard any online asset, showing that people owning cryptocurrencies are still not as educated as they should be.

The good news is that after the Coincheck theft, lessons were learned. The Japanese FSA (Financial Security Agency) started working hard to bring all exchange operations in line by using modern security measures. 76% of the crypto thefts that were reported took place between January and March. After that the number of reports started to go down. This is, in part, due to the efforts of the NPA to teach people about the importance of using better account passwords. Just 38 cases have been reported between April and June.

What Does This Mean For The Crypto Investor?

Cryptocurrency losses are huge all around the world. People are not taking into account recommendations coming from crypto exchange websites and digital wallets. As a result, crypto can be stolen with ease even by hackers that do not really know that much about hacking.

If you are interested in making crypto investments, it is vital that you keep your cryptocurrencies safe. Always follow professional indications and learn how to protect your assets before you buy your first Bitcoin, or whatever you may want to buy.

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