🌎 Fraudsters Target Crypto Exchanges: Bybit Reports $1B in Attempts

Fraudsters Continue Targeting Crypto Exchanges, with Bybit Reporting Nearly $1 Billion in Suspicious Withdrawal Requests During the First Half of 2024

Bad actors are increasingly targeting crypto exchanges, with Bybit detecting nearly $1 billion in suspicious withdrawals during the first half of 2024. In a recent press release, the exchange announced it had successfully prevented over $79 million in client assets from being lost, thanks to its enhanced security measures. These measures leverage artificial intelligence technology to detect and block fraudulent activities.

Bybit’s Advanced Security Measures

Bybit flagged abnormal withdrawal requests totaling $940 million, with over 8.4% confirmed as fraud attempts. The exchange credits its AI-powered systems, which include biometric authentication and behavioral analytics, for thwarting these fraud attempts. One notable incident involved face-swapping technology aimed at bypassing facial verification.

AI-Powered Fraud Prevention

Bybit’s chief operating officer Helen Liu noted that the fraudulent withdrawal rate remained “below 10%” during the first six months of 2024. The exchange’s focus on security is particularly significant given the broader industry scrutiny it faces.

Industry Challenges and Scrutiny

In May, international prime broker Hidden Road halted trading for its clients on Bybit, citing concerns over its verification practices. Although Bybit has not publicly addressed these concerns, a spokesperson emphasized the company’s commitment to transparency.

Commitment to Security

Despite these challenges, Bybit executed over 30 million withdrawals and protected more than $37 million in project funds since the start of the year. This reaffirms the exchange’s commitment to security amid a growing threat landscape.