UAE: Cybersecurity council warns of fraud in cryptocurrencies

The Cyber Security Council of the UAE government warned the residents of the dangers of fraud in cryptocurrencies, as they constitute a cross-border threat that requires vigilance from dealers.

Dr Mohammed Hamad Al Kuwaiti, Chairman of the Cybersecurity Council, said that the risks of cryptocurrency fraud extend beyond financial loss, putting personal privacy at risk and threatening the fundamental trust on which the cryptocurrency market depends.

He pointed out that the recently released data and studies highlight these risks and regulatory measures are being taken in light of the growing concerns about fraud in digital currencies and its consequences.

He stressed the continuation of efforts to strengthen the pillars of cybersecurity in a way that contributes to mitigating these risks and protecting the financial system from modern-day digital threats.

Al Kuwaiti called on investors in cryptocurrencies to be careful of exaggerated benefit offers, especially those that seem to be too good.

He explained that common fraudulent methods in cryptocurrencies include phishing through fake emails or text messages aimed at deceiving users into entering sensitive personal or financial information, in addition to stealing cryptocurrency wallets through hacking applications or websites or social engineering.

He added that one of the fraudulent methods is to promise guaranteed profits by operating cryptocurrencies, but in reality they steal the customers’ money.

Al Kuwaiti stressed the importance of adopting safe practices, explaining a number of measures that individuals and companies can take to protect themselves from fraud in cryptocurrencies. The most prominent measure is being wary of offers that seem too good. Using strong passwords for each account, enabling two-factor authentication, and becoming familiar with common fraudulent methods, in addition to verifying the legitimacy of any platform or company before investing in it can also help to ensure safety.

Data from the CoinPedia and PYMNTS networks indicate that approximately $2.38 billion was stolen over the 11 months until November 2023, which poses a major threat to the security of digital assets.

Ethereum is the most targeted network in the field of cryptocurrencies, as it was subjected to approximately 38 per cent of all cyber attacks.