Mica Reduces Cyber Fraud by Over 50% and Redirects Criminals’ Focus

The number of attacks has decreased by 51%, indicating a shift away from cryptocurrency. This shift is due in large part to the regulation of the Market in Crypto Assets (MiCA). Due to the tightening of regulations on the crypto market, it is becoming increasingly difficult for fraudsters to operate. Therefore, they have turned their attention to the payments sector.

AU10TIX – a global identity intelligence company based in Israel – recently published a report on the state of global fraud identity in the third quarter of 2023. This report focused on the impact of MiCA and emphasized enhanced investor protection.

It also became clear how the crackdown on crypto fraud is shifting efforts to the payments sector. The report found a 56% increase in payments fraud, driven by factors such as increased digital transaction volumes in Asia Pacific (APAC) and North America’s economic recovery.

The Global Impact of Organized Crime

Ofer Friedman is Chief Business Development Officer of AU10TIX. He said: “Organized criminal groups are exploiting gaps in detection technologies to orchestrate massive financial fraud simultaneously across multiple business and geographical locations.” The actual fraud rate is many times higher than reported.

In the APAC region, the complexity of digital transactions creates challenges in identity verification due to the different economies and cross-border transactions. In Payments Payments Payments are one of the most common forms of exchange today. This involves the exchange of fiat currency or its equivalent from one party to another in exchange for services or goods. Payments have become an integral part of modern commerce, although the participants and the means of exchange involved have changed dramatically over the years. Most common It is important to understand this term North America faces major challenges in this sector. This presents potential loopholes for fraudsters.

Scammers are taking advantage of North America’s economic recovery and increased spending.

Risks despite MiCA’s ambitions

Despite the fact that crypto investors expect safety nets from MiCA, a The statement from the European Securities and Markets Authority revealed a worrying reality. ESMA has urged retail investors to prepare for the implementation of MiCA, warning that the regulations will not protect their investments until December 20, 2024.

MiCA aims to standardize cryptoasset activities in the EU to improve consumer protection and market stability. ESMA ESMA The European Securities and Markets Authority is an independent authority of the European Union. It is responsible for the security of the European Union’s financial system and has the responsibility to protect the public. ESMA, the European Securities and Markets Authority, was founded on January 1, 2011. The European Securities and Markets Authority (ESMA) is an independent EU agency based in Paris. The aim is to improve the efficiency and stability of the financial markets. It is important to understand this term. National authorities and crypto asset service providers are expected to align their supervisory practices.

ESMA warned that despite MiCA’s ambitious goals, there are still inherent risks in crypto assets even after the regulation’s implementation. The regulator has stressed that full protection of MiCA will only be ensured once it is fully enforced.

MiCA was officially approved on May 20, 2023. Implementation is planned by December 2024. A possible extension of the transition period until July 2026 could also take place. The decision of the member states determines the final result.

In May the EU Council adopted MiCA. This was a significant milestone in the EU’s efforts to regulate cryptocurrencies. This was a move that represented a concerted attempt to protect crypto investors, promote sustainability and stop money laundering.