Projects which raise funds through “initial coin offerings” (ICOs) are attacked by cyber criminals 100 times a month on average, a report said, underscoring the risks of investing in cryptocurrency ventures online.
The research, published by Moscow-based cyber security firm Group-IB on Wednesday, was based on an analysis of 450 attacks on ICOs since the beginning of 2017. Attempts by hackers to steal money from ICO projects increased tenfold over the period.
Group-IB also took part in a study published this week by Ernst & Young which showed that roughly $400 million of the $3.7 billion raised via ICOs to date had been stolen.
The findings come amid a cryptocurrency investing craze, with young companies raising hundreds of millions of dollars online to fund projects, with often little more than a handful of employees and an outline business plan.