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Fraudsters continue targeting crypto exchanges, with Bybit reporting nearly $1 billion in suspicious withdrawal requests during the first half of 2024.
Bad actors seem to be ramping up efforts to defraud crypto exchanges, with Bybit detecting nearly $1 billion in suspicious withdrawals during the first half of 2024.
In a Sept. 20 press release, the exchange said it prevented over $79 million in client assets from being lost through its enhanced security measures, which leverage artificial intelligence technology to detect and block fraudulent activities.
Bybit also flagged abnormal withdrawal requests totaling $940 million, with over 8.4% confirmed as fraud attempts. The exchange says its AI-powered systems, including biometric authentication and behavioral analytics, played a key role in thwarting a recent attempt “involving face-swapping technology aimed at bypassing facial verification.”
Bybit tightens security amid industry scrutiny
Bybit’s chief operating officer Helen Liu says the fraudulent withdrawal rate remained “below 10%” during the first six months of 2024. The exchange’s focus on security comes as the exchange faces broader industry scrutiny.
In May, international prime broker Hidden Road halted trading for its clients on Bybit, citing concerns over its verification practices. Although the exchange has not addressed the issue publicly, a spokesperson emphasized the company’s commitment to transparency.
Despite these challenges, Bybit says it executed over 30 million withdrawals and protected more than $37 million in project funds since the start of the year, reaffirming its commitment to security amid a growing threat landscape.