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Bitcoin and its cryptocurrency brethren have been all the rage in 2021, and record numbers of investors are now getting caught up in the excitement. And while the critics do raise plenty of interesting questions about the long-term viability of crypto, there’s no denying that vast fortunes have been made by some. One of the areas of crypto investing that has mostly been overlooked, however, is the risk of owning crypto investments — not the risk of capital loss, which has been much discussed, but rather the risk of being duped, scammed or outright robbed of your investment. Here’s a look at some of the most prominent cyber risks to investing in cryptocurrency.
Cryptocurrency isn’t a tangible item, like a dollar bill. It only exists in the virtual world. As such, it’s vulnerable to theft in any number of ways, just like your online bank account. While the chance that any one specific person will fall prey to crypto theft may be small, the crime is rising dramatically on the whole.
According to Crystal Blockchain Analytics, from January 2011 to December 2021, $3.18 billion was stolen through security breaches,…