Fraudsters Targeted Mostly Token Bridges In 2022 – Visa Report

Visa, the worldwide payment provider, reported that in 2022, cryptocurrency thefts reached an all-time high, exceeding $3 billion due to on-chain exploits. According to Visa, the perpetrators of these attacks frequently targeted cryptocurrency bridge services.

Visa Releases Biannual Threats Report 

Earlier this week, Visa released its biannual threats report, which includes information on various types of digital payment system violations that occurred globally last year, ranging from card fraud to malware. The report also features a dedicated section focused on digital and cryptocurrency platforms.

The focus is primarily on the susceptibility of token bridges. Typically, scammers take advantage of the smart contracts of a bridge service to create fraudulent transactions or approve unauthorized ones.

The report noted that funds illicitly obtained through token bridges amounted to $2 billion from January to October. In addition, the report highlights a phishing campaign that specifically targeted cryptocurrency users.

Often, the perpetrators pose as a popular crypto exchange in email communications to acquire the victim’s account login information. Upon being prompted for two-factor authentication (2FA) by the authentic exchange, the fraudsters would use a fake website to request the victim’s 2FA credentials.

Afterward, they will use the actual 2FA from the fake site to complete the login process. Reports in February indicated that Visa and its rival Mastercard would postpone the rollout of new collaborations with cryptocurrency companies in light of notable bankruptcies within the sector.

Meanwhile, Cuy Sheffield, who serves as Visa’s Head of Product, has criticized the report, claiming it is inaccurate.

Bitcoin’s Market Cap Flips Visa’s 

Sheffield reassured that Visa would maintain its partnerships with cryptocurrency firms to enhance fiat exchanges on and off-ramps. Additionally, he mentioned that Visa intends to develop new products enabling stablecoin payments.

As of last month, the market capitalization of Bitcoin surpassed Visa’s market capitalization for the third time. On March 14th, the difference between the two market caps widened to over $20 billion in BTC’s favor.

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