A Rise in Cryptocurrency Hacks
Cryptocurrency was created as an alternative to the traditional monetary system, run on a distributed public ledger called a blockchain. Cryptocurrencies are an attractive asset to many investors as they are limited in quantity but are increasingly in demand, with over 420 million crypto users worldwide.
In the last year, several high-profile cryptocurrency hacks have occurred. This includes the hacking of the largest cryptocurrency exchange in the world, Binance, resulting in a loss of USD 566 million. This attack contributed to a record total of USD 3.8 billion in crypto-financial losses for businesses and individuals.
Alongside attacks on businesses, Decentralised Finance (DeFi), the financial infrastructure that facilitates cryptocurrency transactions, has become the biggest victim of cryptocurrency hacks, accounting for 82.1% of all cryptocurrencies stolen.
Considerations for underwriters
Despite the value of cryptocurrency such as Bitcoin falling by 60% last year, the increase in crypto heists demonstrates the heightened attractiveness of cryptocurrency.
Underwriters may want to review their crime wordings to ensure they have adequate protections in place against such losses.
Also, when conducting risk assessments of prospective policyholders, insurers may want to revisit the checks they make to ascertain whether crypto businesses have adequate security procedures in place.
Contents
- The Word, February 2023
- Product distribution – protecting yourself from an early exit
- Brian Leighton (Garages) Ltd v Allianz – guidance on the meaning of ‘proximate cause'
- Court of Appeal considers law and jurisdiction clause within suite of multi-risk policies
- ChatGPT – is AI a help or hindrance to underwriters?
- Many businesses (still) not protected against cyberattacks, report says
- Recent EIOPA Updates
- A new wave of claims?
Key contact
Tim Johnson
Partner
tim.johnson@brownejacobson.com
+44 (0)115 976 6557
You may be interested in...
Legal Update
Walking the fine line: The statutory duty of candour and insurance
Legal Update
FCA launches consultation on broker remuneration for multi-occupancy buildings insurance
Legal Update
AI is creating fraudulent claims
Legal Update
Shoplifting epidemic by organised criminal gangs: The impact for insurers
Legal Update
Death and disgrace policies: What can insurers learn about the allegations against Gregg Wallace?
Legal Update
Insurance complaints surge continues
Legal Update
Embedding social value in procurement
Legal Update
Navigating workplace sexual harassment laws during the festive season
Opinion
Revolutionising the Workforce: Impact of Get Britain Working White Paper
Legal Update - London Market Quarterly
London Market Quarterly December 2024: An eye on what the market needs to know
Published Article
Johnson et al v FirstRand Bank: Judgment sends warning across financial services intermediation
Opinion
Balancing employer flexibility and employee rights
Legal Update
The ‘grate’ cheese robbery: Implications for insurance professionals
Legal Update
Environmental crime and the impact for insurers
Legal Update
Carbon fraud prompts insurance response
Legal Update
What might a Trump victory mean for the UK insurance industry?
Legal Update
Post Office scandal: Lessons for underwriters
Legal Update
Weather protection parametric insurance: A sign of things to come?
Legal Update
Building an inclusive workplace: Strategies for attracting and retaining disabled talent
On-Demand
Kinship care: DJ v Barnsley Metropolitan Borough Council and SG
Legal Update
After a pause, Buy Now Pay Later (BNPL) regulation becomes one step closer
Legal Update
Updates to the UK’s Arbitration Bill
Legal Update
Ozempic: The rising costs and coverage issues of weight loss medication
Legal Update - Employment Rights Bill
What does the Employment Rights Bill mean for employment practices liability insurance?
Legal Update
ICAEW: Changes to PII requirements
Legal Update
Contractor insolvency: Peabody Trust v NHBC
Legal Update
Insurability by design: Increased transparency for vehicle manufacturers and insurers
Legal Update
By a narrow 2 to 1 majority, the Court of Appeal finds in favour of insurers in the construction of an exclusion clause in a W&I policy
Legal Update
Organisational approaches to ESG and sustainability matters
Legal Update
LMA binders’ consultation
Legal Update
Smooth sailing ahead: The LMA's new Open Form Default Clause
Legal Update
PFAS: The issue that won’t go away
Legal Update
Oklahoma earthquake: Racial discrimination in adjudication
Legal Update
Will the Online Safety Act help reduce Google ad spoofing in insurance?
Legal Update
Vicarious liability for kinship foster carer abuse: Implications for local authority insurers
Legal Update
Latest short-term insurance trends
Legal Update
Motor finance complaints on hold: Why now is the time for strategic action
Published Article
General insurance claims part 3: evidence of the insurance markets’ learnings from the consumer duty
Legal Update
Artificial intelligence putting the ‘actuarial defence’ to the test?
