A few days after expanding into cross border payments, Coinbase is continuing its domination and is now taking the threat of criminals who are hacking activity seriously. To prove things, the exchange revealed the details of its brand new crypto insurance policy program this week – making the latest digital currency news on our site.
As Coinbase stated, the hot wallet policy has been held with a $255 million limit since 2013. The policy is now facilitated through Lloyd’s of London. According to the Chief Information Security Officer at Coinbase, Philip Martin:
“The data is clear that, today, the most likely consumer loss scenario for any cryptocurrency company is hot wallet loss due to hacking.”
Martin also touched on the possible scenarios and how Coinbase’s insurance policies give customers peace of mind that the Bitcoin or altcoin savings they hold at the exchange is protected from losses.
“If the worst happens and Coinbase loses customer funds, customers deserve certainty that they will be made whole,” he wrote.
According to experts, the worst case scenarios for losses in this manner break down to two categories: crime and specie.
While crime covers losses caused by criminals who hack, steal and conduct fraud transfers, insider trading losses are also covered. On the other hand, the Specie coverage kicks in whenever there is a physical damage or theft or private key data in cold storage.
As Martin explained:
“Crime policies would not generally cover the costs of incident response, PR costs, etc. Crime policies also don’t generally cover failures of the underlying currency (e.g. 51% attacks). Coverage for hot wallet exposures are also significantly more expensive than cover for cold storage alone.”
He also had plenty to say about why is insurance important for crypto companies and what it should cover.
“Companies should focus on insurance for value in flight. This means that exchanges and wallets should have sufficient Crime coverage to fully cover their hot wallets (including enough buffer to handle asset price spikes),” Martin added.
He concluded with a statement in which he said that Coinbase is working with regulators and insurers to create more insurance solutions in different areas.
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South Korea Ends $18 Million Crypto Ponzi Scheme With The Help Artificial Intelligence (AI)
“Through keywords such as Ponzi, loan and recruiting members, we were able to teach the AI patterns of Ponzi schemes. The program can also identify advertisement patterns and identified the enterprise in question, which [was caught] with evidence provided by an unnamed informant.”The CEOs of the scheme, known as Lee and Bae, amassed a lot of money through selling private digital tokens named M-Coin which posed to be a real altcoin, along with membership fees from recruits, as the publication states. The figures also took advantage of the public's lack of knowledge of the crypto space to part them from their fiat investments.
“In our stakeout, we saw that most people attending the swindler’s presentation for membership were elderly people in their 60s and 70s,” Hong Nam-ki added.Currently, Ponzi schemes still remain a persistent phenomenon despite the increasing legitimacy of cryptocurrency in the public eye. This is obviously not the first (or the last) crypto ponzi scheme that exists out there - and will hopefully not be the last to be spotted with the help of artificial intelligence (AI). Earlier this year, authorities caught up with the controllers of OneCoin which is a notorious international quasi-pyramid scheme which ran for several years.
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Facebook Fraudsters Use Photos Of Celebs To Lure People Into BTC Investing
Crypto scams and frauds are always a hot topic for cryptocurrency news and in ours we have a case where fraudsters use photos of Australian TV celebrities, mainly hosts of popular TV shows in order to convince the people to invest in a bitcoin scam.
The funny thing is that the scam is taking place on one of the most popular social media platforms on the planet-Facebook. Con-artists create profiles that seem legitimate and successfully manage to trick people into investing.
Photos of TV presenters Karl Stefanovic and Waleed Aly were used in a fake news segment on a popular evening talk show The Project where both of the hosts discuss how much they are making by investing in bitcoin using Bitcoin Trader. After the fake Facebook profile pages were created, the scammers pay the platform to promote their posts so it reaches millions of people in order to maximize the views so the message gets spread out.
One sponsored post even stated:
‘’The Project co-host Waleed Aly was left in disbelief as Stefanovic pulled out his phone and showed viewers how much money he’s making through this new money-making program that now has everyone in Australia whispering.’’
There were also some falsified quotes by Stefanovic saying:
‘’It’s the single biggest opportunity I’ve seen in my entire lifetime to build a small fortune. I urge everyone to check this out before the banks shut it down.’’
After the fake and sponsored ads were reported to Facebook, the social media giant stated that the scam does not breach their terms or conditions that the complaint was ‘’rejected’’ after outlining that the advert featured on the platform was acceptable. The report goes on to explain the guidelines that the platform does not ‘’allow deceptive, false or misleading content, including deceptive claims, offers or business practices’’ and yet again Facebook did nothing.
The scammers posted the first ad on Facebook on Tuesday and people were led to invest minimum of $20 with a guaranteed 10 times bigger return.
Facebook crypto scams are increasing constantly it seems, since a couple of days ago a New York Fraudster was sentenced to 20 years in jail for a FB Crypto scam. Also, Jason Flack or better known as Patrick McDonnell was also a fraudster due to convincing others to invest in crypto via Facebook.
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