Blog Post: The Global Surge in Cybercrime

The digital world and crypto currency is constantly evolving, and consequently, cybercrime and other crypto currency frauds are expanding. The issue of cyber crime extends past cryptocurrency frauds and other financial swindling, but rather it consists of other issues like cyberbullying, cyberespionage, trafficking, among many. Despite the awareness of the insistent crisis of cybercrimes, there is no singular solution that is cohesively being implemented globally to solve the problem. In the United Kingdom alone, there was a 32% increase in cybercrimes committed in 2022, and globally crypto crimes have hit a record high of $3 billion stolen and

$718 million in the month of October alone. This is a 79.5% increase from last year, and this value is projected to keep growing.

Despite these alarming concerns regarding the digital currency, crypto currency remains one of the most mainstream global methods of payment. The use of crypto currencies range from apps ads to bitcoin and other digital currencies ATMs. These categories are only expanding. The cyber currency users are continuously expanding because of the false beliefs and hopes of investment opportunities. In fact, from January 2021 to March 2022, investment related frauds is the top category in crypto crime. The promise and allure of amassing wealth have kept people investing using crypto currencies regardless of the grave risks. Crypto scams are an especially dangerous type of cybercrime because they are not subjected to a specific age group. A study done on crypto currency frauds shows that the age group of 20 to 49 are more likely to fall to a crypto currency scam. The promotion of crypto currencies on social media is also adding to the problem by making scammers access targets much easier.

Unlike other cybercrimes, the nature of cryptocurrency allows it to be particularly effective to scammers. Cyber crimes like crypto currency are made more efficient and accessible to scammers because of the irreversible nature of the digital transaction and the lack of an official financial institution. Additionally, there is a significant lack of understanding about monetary cyber crimes like cryptocurrency. Other cybercrimes like cyberbullying have received more proactive laws, with all 50 U.S. states having comprehensive bills passed. However, there are still legal actions being taken against crypto currency fraud. The Department of Justice or the DOJ is using the wire fraud statute to counter and prosecute crypto currency fraud. The DOJ has been able to apply the wire fraud statute to different forms of market manipulations like trade schemes, including two major NFT rug pull cases in the first half of 2022. The first NFT case was a $1.1 million rug pull in March 2022, and the second case was a $2.6 million rug pull in June, 2022.

As you prepare to join the Commission on Crime Prevention and Criminal Justice committee, it is important to understand that cybercrimes are fickle due to their digital nature, and the solutions proposed must cater to that. The main focus should be on creating laws that are able to protect citizens digital information and assets. It is also important to apply and amend statutes and bills that are capable of protecting people from cyber frauds. Questions like: how can the wire fraud statute be better amended to be more comprehensive and what is the role of social media platforms in cyber frauds needs to be asked to try to ameliorate the issue.