Fraud is Outpacing Hacking Exploits (CUBE3.AI Can Help Stop It)

Online fraud is outpacing hacking as the biggest threat to consumers, leaving law enforcement overwhelmed. Billions of dollars are being siphoned away by organized crime rings targeting victims worldwide. CUBE3.AI is here to change the game, offering a proactive solution to stop fraud before it even starts.

Is Fraud is the new “Hack”?

Cybersecurity has become a foundational layer in applications and devices today in order to keep users safe and secure. Criminal syndicates are adapting from brute force attacks to manipulating people at scale through crypto investment fraud and romance scams like pig butchering. Losses from fraud are now outpacing hacks like those attributed to data breaches, malware or system intrusion. Therefore, fraud prevention is now gaining momentum. To combat these increasing attacks, solutions like CUBE3.AI are leading the charge with proactive, pre-crime detection. Using sophisticated AI models CUBE3 is evolving beyond the foundations of the past 25 years of cybersecurity.

Crypto Fraud is Increasing: 53% YoY

According to the FBI’s Internet Crime Complaint Center (IC3), fraud losses in the US increased dramatically from 2019 to 2023. This trend is largely fueled by a surge in cryptocurrency investment scams, now accounting for the largest portion of investment fraud losses.

The FBI’s 2023 Annual Report reveals that cryptocurrency investment scams were responsible for $4 billion in losses reported, up a staggering 53% increase from 2022 to 2023. This alarming statistic underscores the growing threat posed by these deceptive tactics.

Romance/Pig Butchering Scams: A Growing Concern

A recent hearing before the House Subcommittee on National Security, Illicit Finance and International Financial Institutions highlighted the alarming rise in romance scams, particularly the “pig butchering” variant. According to testimony from Dara Daniels, Associate Director of Research & Analysis at FinCEN, the number of suspicious activity reports (SARs) related to pig butchering scams has skyrocketed in recent months.

A Growing Threat: From September 2023 to early September 2024. FinCEN received over 8,600 SARs related to pig butchering scams, with a steady increase in reports each month.
Depository Institutions and Crypto MSBs as Key Players: Depository institutions filed 45% of the SARs. Crypto money service businesses (MSBs) accounted for approximately 42%.
Long-Term Scams: FinCEN found that perpetrators typically engage with victims for over 100 days, building trust and grooming them for exploitation.

These statistics underscore the serious nature of pig butchering scams and the urgent need for increased awareness and prevention measures.

Law Enforcement and Media Take Notice

Law enforcement agencies and media outlets are increasingly taking notice of the devastating impact of pig butchering scams. Prosecutor Erin West, a leader on the board of CUBE3.AI partner, the Global Anti-Scam Alliance (GASA), has been at the forefront of efforts to combat these crimes. Her team has been able to recover millions in initial losses from victims but there are too many cases and criminals are adapting quickly.

As Erin West highlights in a recent WSJ article, “We are way behind the curve…We are not organized, we do not have a plan. There has to be a strategy.” While law enforcement plays a vital role, catching these criminals after the fact is only part of the solution. Prevention starts with proactive protection.

Introducing CUBE3.AI: Your Real-Time Fraud Prevention Partner

CUBE3.AI offers a proactive strategy and advanced tactics to stop fraud before it even starts. Here’s how we can help:

Unmatched Threat Detection: We leverage AI and machine learning models to analyze real-time data from both web2 and blockchain sources. This comprehensive approach allows us to immediately identify suspicious activity that other tools might miss.
Proactive Defense: Our system continuously analyzes every transaction. We catch new or emerging threats even if the counterparty has no previous fraud history. This empowers businesses to stay ahead of scammers and prevent damage before it happens.

Together, we can create a safer online environment. By combining CUBE3.AI‘s proactive approach with the tireless work of law enforcement agencies and organizations like GASA, we can significantly reduce the impact of fraud and protect consumers from these devastating scams.

Stay informed, remain vigilant, and consider partnering with CUBE3.AI to safeguard your business, assets and reputation.