Uppsala Security publishes the report of the virtual asset damage response center

It is reported that the Cryptographic Incident Response Center (CIRC) of Uppsala Security, an expert of the blockchain virtual asset supervision technology (RegTech) in South Korea, recently released the CIRC statistical report for 2022. Based on the opinions received directly from the victims of virtual asset crime in South Korea, the report provides valuable insights into the trend and impact of these events in the country. The report shows that in 2022, Uppsala Security received about 500 reports of virtual asset fraud, resulting in a total loss of 52.4 billion won. Among the affected tokens, Ethereum (ETH) and ERC-20 tokens “are the most affected, followed by Bitcoin (BTC). The most common type of fraud” is love based fraud, accounting for 30% of the reported events, followed by the private key disclosure of cryptocurrency wallet (22%), and the last but not the least important is ICO investment fraud (17%).

Interpretation of this information:

The Cryptographic Incident Response Center (CIRC) of Uppsala Security, a RegTech expert in South Korea, has released its statistical report for 2022. The report gathered direct input from victims of virtual asset crime in South Korea and provides insights into the impact and trends of crypto crime in the country. According to the report, Uppsala Security received roughly 500 reports of virtual asset fraud, causing a total loss of 52.4 billion won in 2022. Ethereum (ETH) and ERC-20 tokens were the most affected assets, followed by Bitcoin (BTC). The report identified love-based fraud, accounting for around 30% of reported cases, as the most common type of fraud. Private key disclosure of cryptocurrency wallets came in second, with approximately 22% of the reported cases, and ICO investment fraud was the third most common fraud, accounting for 17% of the cases.

This report highlights how virtual asset fraud continues to be a concerning issue within the South Korean Crypto industry. The report also highlights the importance of RegTech, which is becoming increasingly necessary as virtual assets gain traction. RegTech is a system of regulatory technology designed to streamline regulatory processes allowing for efficient prevention and regulation of criminal activity within the financial industry. By relying on RegTech, professionals can stay one step ahead of potential threats.

Ethereum and ERC-20 tokens are the most affected virtual assets, followed by Bitcoin, implying that hackers are more comfortable attacking lesser-known tokens with lower levels of security. As such, it is important to ensure that companies put their technology at the forefront of their strategy.

The report highlights the most common types of fraud, with love-based scams being the most common. The hackers behind such scams usually pose as individuals looking for romantic partners and then convince cryptocurrency holders to send them crypto as a show of good faith. As such, people should be more cautious when engaging with unknown individuals online, especially if the conversation veers towards money matters.

Overall, the report is a wake-up call for the South Korean Crypto industry to not only remain vigilant but also to adopt security measures like RegTech.