More than half of crypto users in SA hit by cybercrime – report

Some 58% of crypto users have been hit by some form of cryptocurrency crime, according to a survey by cybersecurity firm Kaspersky.

In South Africa and Asia-Pacific countries, crypto-investment fraud (23% and 15% respectively) and fake apps (16% and 15% respectively) are major concerns.

On the other hand, in Europe extortion attacks in which scammers threaten to reveal victims’ browsing history on adult websites unless they provide private keys or send cryptocurrency (13%) are the problem.

Kaspersky commissioned Arlington Research to research 12 000 people from 16 countries including Austria, Brazil, Colombia, France, Germany, India, Malaysia, Mexico, Saudi Arabia, South Africa, Spain, Switzerland, Turkey, UAE, the UK, and the US.

The sample group included active users, investors and passive owners, ex-owners and non-owners.

What’s clear from the findings is that knowledge of crypto is improving. Whereas four years ago only 7% of people in a similar survey professed knowledge of cryptos, now the figure is 31%.

The Far East leads the world in its familiarity with crypto, with 73% of participants having direct ownership experience, followed by SA with 57%, the Americas with 47% and Europe with 36%.

Read: Around 4m people in SA own crypto, and even more use it

For all the putative benefits of cryptos, theft and scams are formidable fears. About a quarter of respondents in SA “felt well informed about potential cryptocurrency cyberthreats, while 18% had no information at all,” says the report.

Some 42% of crypto owners did not believe current protection systems for cryptocurrency were effective.

Sneaky threat, even for non-crypto users

About half of local respondents were unaware they could become a target of crypto threats even if they do not own cryptocurrency.

“It is worth noting that anyone can become a target for crypto miners – programs that secretly generate cryptocurrency for their owners using the resources of other computers, whether they own cryptocurrency or not,” says Kaspersky.

Certain websites have been known to install malware that allows a malicious actor to use your processing power for crypto mining. One way to minimise this risk is to install an ad-blocker or use an ad-blocking browser like Brave.

A quick tell whether your computer is being secretly used for crypto mining is to check your CPU activity level when browsing.

If you close browser tabs and the CPU usage is still high, your computer may be being used to enrich someone else.

A separate report by Kaspersky shows cyber criminals pivoting to ‘crypto-jacking’ as it is known, as this allows them to earn crypto without having to pay for electricity or computer equipment.

Regulation and punishment

The most recent Kaspersky survey shows more than half the respondents would like to see regulation by an independent authority, while 44% agree cryptocurrency regulation should be carried out by banks.

The idea of enforceable laws against cryptocurrency-related cybercrime met with the greatest approval, with 72% expressing support.

Read: Crypto criminals walk free because of lack of resources

The reasons for using crypto vary: 37% see it as an investment, 33% like the convenience of fast and easy transfers, and 27% appreciate its privacy and anonymity.

Source: Kaspersky

Rapid money transfers within their own country via crypto are becoming more common than sending money abroad, with owners in Asia-Pacific being most active in this regard.

Crypto volatility is a serious concern to about half of respondents, with one in 10 experiencing a loss of money due to a drop in crypto values.

One in eight respondents no longer trust cryptos. A further 14% refuse to use them because they are not backed by tangible assets.

South Africans also appear to value their anonymity and privacy, particularly for donations.

Interestingly, only 16% of respondents thought cryptos were a passing trend.

Read: SA teens skip school to chase risky crypto dreams

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