Scammers are increasingly targeting cryptocurrency exchanges, with Bybit reporting almost $1 billion in dubious withdrawal requests in the first half of 2024.
Malicious actors appear to be intensifying their efforts to deceive crypto trading platforms, as Bybit identified nearly $1 billion in suspicious withdrawals during the first half of 2024.
In a September 20 press release, the exchange announced it thwarted over $79 million in potential losses for clients through its improved security measures, which utilize artificial intelligence technology to identify and prevent fraudulent activities.
Bybit also reported unusual withdrawal requests amounting to $940 million, with more than 8.4% confirmed as fraud attempts. The exchange attributes its success in preventing a recent scheme—utilizing face-swapping technology to evade facial verification—to its AI-driven systems, which include biometric authentication and behavioral analytics.
Bybit enhances security amidst industry scrutiny
According to Bybit’s chief operating officer, Helen Liu, the rate of fraudulent withdrawals has remained “under 10%” in the first six months of 2024. The exchange is prioritizing security as it navigates increased scrutiny from the broader industry.
In May, the international prime broker Hidden Road suspended trading for its customers on Bybit, raising concerns about its verification processes. Although the exchange has not publicly responded, a representative underscored the company’s dedication to transparency.
In spite of these challenges, Bybit reports having processed over 30 million withdrawals and safeguarded more than $37 million in project funds since the beginning of the year, reaffirming its commitment to security in an increasingly perilous environment.
