MiCA Slashes Crypto Fraud by over 50%, Redirects Criminal Focus

<p>There has been a shift in fraud away from the
cryptocurrency space, with a decline of 51% in attacks, thanks to the Market in Crypto Asset (MiCA) regulation. With fraudsters
finding it increasingly challenging to operate in the crypto market due to
regulatory measures, their focus has turned to exploiting vulnerabilities in
the payments sector.</p><p>The global identity intelligence company
headquartered in Israel, AU10TIX, recently released a report about the state of the global fraud identity for the third quarter of 2023. This report delved into the ramifications of the MiCA, emphasizing enhanced investor protection. </p><p>Moreover, it unveiled how regulatory crackdowns in
the crypto space are redirecting fraud efforts toward the payments sector.
The report detailed a 56% surge in fraud in the payments sector,
driven by factors like increased digital transaction volumes in the Asia Pacific (APAC) region and the economic recovery in North America.</p><p>The Impact of Organized Fraud Globally </p><p>Ofer Friedman, AU10TIX's Chief Business Development
Officer, mentioned: "Organized crime groups are exploiting gaps in
detection technology to orchestrate financial fraud on a massive level
simultaneously across multiple businesses and geographies. Actual fraud rates
are multiple times higher than reported."</p><p>Meanwhile, in the APAC region, the rise in digital transactions, coupled with their complexity due to diverse economies and <a href="https://www.financemagnates.com/tag/cross-border-payments/" target="_blank" rel="follow">cross-border</a> transactions, creates difficulties in verifying identities. In the <a href="https://www.financemagnates.com/terms/p/payments/">payments</a> sector, North America faces significant challenges, a scenario that presents potential loopholes for fraudsters. </p><p>The higher occurrence of attacks in North America is linked to fraudsters taking advantage of economic recovery and increased spending in the region.</p><p>Risks despite MiCA’s Ambitions</p><p>Although Crypto investors anticipate safety nets
with the MiCA, <a href="https://www.financemagnates.com/cryptocurrency/why-mica-wont-protect-your-crypto-investments-until-december-2024/" target="_blank" rel="follow">a recent statement</a> from the European Securities and Markets
Authority (ESMA) unveiled a concerning reality. ESMA has urged preparations for
MiCA's implementation, cautioning retail investors that the regulations won't
shield their investments until December 2024, <a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a> reported.</p><p>The regulation aims to standardize crypto-asset
activities across the EU to strengthen consumer protection and bolster
market stability. <a href="https://www.financemagnates.com/terms/e/esma/">ESMA</a> has set expectations for national authorities and
crypto-asset service providers to align their supervisory practices.</p><blockquote><p lang="en" dir="ltr">