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Inactive Bank Accounts Are Bigger Than You Think

Inactive Bank Accounts Are Bigger Than You Think

Given the prevalence of bank accounts in the modern world, and the necessity of having one in first world countries, it would be easy to assume that there are only a small number of people on the planet without a bank account. This assertion would be incorrect, in fact, a large number of people do not have a bank account at all.
Considering the huge buzz centered around cryptocurrencies, it is also surprising to see that there are a large number of inactive accounts within the cryptocurrency space. 

Inactive Bank Accounts

In 2018, the World Bank released information pertaining to the current climate for global financial inclusion. The provided figures give an unprecedented look into the subject. The data from the World Bank showed that despite the fact that 67% of the world’s population had a bank account in 2017, up from 61% in 2014, growth may be slower than we think. Of the increase in that three year period, 80% of those new accounts are currently inactive. Meaning that they have had no ingoing or outgoing transactions for over a year.

When you only apply active accounts to the percentages, the share of people with a bank account increased from 52% to 53%, which is a much smaller improvement. The survey from the World Bank included answers from 150,000 participants.

Bank accounts are getting more common globally, but not active ones
Countries where the share of adults with bank accounts is falling

Source


The number of inactive accounts is of concern to financial institutions because if a user doesn’t consistently utilize their account, they will not be able to attain the benefits that the account provides, furthermore, those accounts also provide minuscule value to the issuers of the accounts. Only inactive accounts with large balances will be able to generate value for the bank and the customer.

Out of all of the different countries surveyed, it was found that the countries with the largest populations, China and India were also the countries with the most financially excluded people. The survey also gave the participants the opportunity to explain their reasons for not having a bank account. The figures show that the main reasons for exclusion are a lack of access to money, the cost of using the services, access to services and a lack of trust in financial institutions.

With the World Bank only having one more year left until the deadline for their Universal Finance Access by 2020, they will need to think about the realistic deadline for UFA and how the steps they are going to take to achieve this goal. The World Bank has pledged to aid the inclusion of 1 Billion people, Visa, Mastercard, and GSMA have pledged a collective 1.5 Billion people, along with other institutions also making pledges.

Inactive Crypto Accounts

It is obviously going to take a lot longer for cryptocurrencies to see universal use across the world than it is for bank accounts, however, that does not mean that cryptocurrencies are doing badly with the accounts that they have now.

In fact, Bloomberg, using information gained by market research firm Flipside Crypto has stated that an unprecedented number of previously inactive Bitcoin wallets have become active again. Delving further into the figures shows that the number of Bitcoin wallets that have been inactive for a period of 1-6 months had dropped by 40% between March and April 2019. This caused a surge in the price of Bitcoin at the time and was indicative of people warming up to the idea of buying Bitcoin again.

One of the biggest concerns with inactive cryptocurrency accounts within the market is those of large cryptocurrency Whales. These are individuals with huge cryptocurrency holdings, with the transfer of said holdings being able to directly influence the market price of Bitcoin. For example, there are currently concerns about a dormant Bitcoin Whale, holding 80,000 Bitcoins. This is worth over $700 Million and if this Whale decides to cash in on their holdings, it could cause a market crash, according to analysts at Whale Alert.

People in the market are valid in their concerns about previously inactive Whales, as it was found in December 2018 that $1.5 Billion worth of Bitcoin was transferred from previously dormant cryptocurrency wallets, with a concerning number of these transactions being from the top-20 Bitcoin wallets. For example, one such wallet has been dormant since 2013 and moved over 60,000 Bitcoin, worth $245 Million to an unknown address. The concerns stem from the fact that Whales are also known to crash the market price after selling, so they can purchase more cryptocurrencies at a lower price, holding until they can flood the market again.

In fact, the top 3 cryptocurrency wallets that have been dormant for 5 or more years have a collective total of over 150,000 Bitcoins, which is a mind-boggling amount. Outside of the top three, there are a number of users with holdings of over 10,000 Bitcoins. This is a large amount of value stored within inactive wallets.

One of the biggest questions that normally surrounds these inactive wallets is the reason for the wallet being inactive in the first place. Due to the high level of anonymity behind cryptocurrencies, we rarely ever learn the reasons for this inactivity, although the most commonly given reasons are, the loss of private keys, the incapacitation of the wallet holder, the holder is continuing to hold for a future sale, or the owner forgot about their holdings.

Only time will tell as to whether or not these dormant accounts will “wake up” in the future and sell their holdings, although the marketplace is aware of the potential consequences of such an event occurring.

*Feature Photo by AJ Colores on Unsplash

How To Protect Your Crypto, By an Ex-Hacker

How To Protect Your Crypto, By an Ex-Hacker

The most grievous security breaches in the crypto world come from hacks and when a hack occurs and there are either, a large number of victims, large losses, or both, the media will draw attention to this straight away. Despite this, smaller successful hacks will hardly go reported. In fact, Foley and Lardner have published a report stating that that 71% of the most prominent cryptocurrency traders and investors believe that theft is the biggest risk plaguing the industry.

Be Careful Of Applications on App Stores

There is a larger proportion of Android users falling victim to hacks, due to the fact that their operating system does not use two-factor authentication. Forbes has claimed that due to the open operating system preferred by Android, it makes it less secure than iOS. Hackers have been known to create apps on behalf of cryptocurrency sites on the Google Play Store.

The most well-known case of cryptocurrency users experiencing a hack through an app on the Play Store occurred in October 2017. Poloniex is an American cryptocurrency exchanged, which suffered hackers posting a fake app onto the Google App Store, which faked the role of a mobile gateway for the exchange. Traders wrongly downloaded the app and their personal information was stolen, with malware analyst Lukas Stefanko, stating that 5,500 users had been effected before the fake app was removed from the store.

How to Avoid This Issue: If you are unsure about the legitimacy of an app, the first thing you should do is visit the website for the project. Usually, from the website, there will be a direct link to a valid app. You should also make sure that two-factor authentication is enabled on your apps, to add another layer of security and should avoid downloading apps that you do not need

Public Wifi

During October 2017, an irreparable flaw was discovered in the WiFi-Protected-Access Protocol. It became possible for attackers to use a KRACK attack to cause the user’s mobile device to connect to the hacker’s network. From this, any information that would pass through the WiFI network would be available to the hackers. This includes private keys for cryptocurrency wallets and these risks are most prevalent in high-traffic areas such as railway stations and airports.

How to Avoid This Issue: It is never worth it to make a cryptocurrency transaction on a public WiFI network, all it takes is one KRACK attack and you will likely lose your holdings. Just make the safe choice and wait until you are on a secure network. You should also always update the firmware on your router to ensure the best possible security.

Fake Websites/Communications

Fake websites or site cloning has been a method of attack since the beginning of the internet boom. This method of phishing has remained in popular use in the current age of the internet. One way in which an attacker can do this is by registering a domain that is one letter short of the official address. Hackers will then clone the entire website in the hope that internet users will not notice their error and will put their personal details into the site, allowing the scammers to steal their information.

Alternatively, attackers may send an email to cryptocurrency users, perfectly copying the communications sent from official cryptocurrency projects. Within these communications, they will encourage users to click on a link in the text, prompting them to put in their personal details, allowing attackers to steal them. A report by Chainalysis has estimated that $225 Million has been lost as a result of cryptocurrency phishing scams.

Source

How to Avoid This Issue: One of the best ways to avoid this issue altogether is to bookmark the correct websites that you will be regularly visiting, this way you do not need to worry about typing the link incorrectly. You also need to remember that you should never give your personal information to anyone, no legitimate business would ask you for your account details over email.

CryptoJacking

Cryptojacking is a rapidly expanding problem within the cryptocurrency community, with 2.9 Million instances recorded in the first quarter of 2018, which was a 625% from the final quarter of the previous year according to a report by McAfee. Cryptojacking itself is a type of attack, whereby the attacker will place malware on the victim’s computer, which operates hidden crypto-mining activities on the computer itself.
There are some types of cryptojacking malware that can also read the personal information stored on your computer, and as a consequence of this the attacker may not only be able to freeload from a person’s computer, but they can also transfer the victim’s cryptocurrency holding to their own wallet.

How to Avoid This Issue: One method of preventing cryptojacking from occurring would be to invest in high-quality antivirus and anti-malware software. Such software would be able to detect any malicious programs and can remove them from your computer. Another prudent measure that you can take would be to avoid downloading software from unverified locations, as these locations carry the greatest risk.

Unscrupulous Add-ons

It’s not a guarantee that an add-on designed for your browser is going to be safe. In 2018, the MEGA Google Chrome extension was replaced by hidden malicious code that was said to be able to harvest sensitive information from sites that its users visited. Tens of millions of people downloaded the addon and were put at risk, even though it was initially believed that the risk only pertained to popular sites like Google and Facebook.

The opposite was confirmed when Riccardo Spagni, a Monevo developer confirmed that both Monero and Ethereum private keys could also be harvested by the addon. ZDNet later released a report confirming the damage done by the MEGA extension, which Google pulled from the Chrome repository, stating that Google, Amazon, Github and other organizations had been affected by the breach.

How to Avoid This Issue: One of the easiest ways to ensure you are not a victim to dodgy add-ons is to not download a large number of add-ons that you don’t actually need. The less you download, the lower your risk of vulnerability. Furthermore, if you do need to download a browser add-on, you should conduct a bit of due diligence and look around the internet for further information on said add-on before downloading.

Lack of Common Sense

One of the main reasons that people fall victim to thieves, wanting to steal their information is due to carelessness. It must be realized that when handling valuable assets such as cryptocurrencies, you are always going to need to do your due diligence and maintain a high level of alertness.

In closing, there are a few other things to consider that will greatly increase the security of your cryptos. Firstly, you should never share your private keys with anyone, no matter the circumstances. Secondly, if you have your private keys in a physical format, you should always keep them in a secure location, such as a safe. You should keep your anti-virus and malware protection up to date to ensure that whilst you are online, you are at minimal risk of falling victim to a cyberattack. Going further from your private keys, you should also never share your personal details with anyone, be careful of hackers posing as cryptocurrency projects through email, as legitimate businesses will never ask for your details in this way.

We’ve Stopped Showing Ads to Protect User Privacy

We’ve Stopped Showing Ads to Protect User Privacy

We have removed our product from the Facebook Audience Network

A few months ago we stopped showing ads in order to prevent any possibility of improper use of the private data of our customers. We respect the privacy of our customers and want to make sure that our product remains free of invasive advertising.
To protect the rights of Coin Wallet customers to retain full control of their personal information during online crypto transactions, we have removed our product from the Facebook Audience Network. This decision was made after significant deliberation. Below, we outline how we came to this decision and what Coin Wallet customers can expect moving forward.

Why Facebook advertising is bad for privacy

Social networks like Facebook or Google have become ubiquitous with internet use. With their buttons and widgets installed on millions of websites, they have unprecedented power to target users for advertisements. The Cambridge Analytica scandal and other recent cases have raised public concerns about the misuse of public data. Despite this, Facebook continues strategic partnerships with dozens of tech conglomerates like Microsoft and Amazon that access user information in exchange for certain promotion services.

Facebook does not only track the activity logs, private chats, and user-uploaded content on its own social media platforms. It also actively pursues collecting user data all over the Internet. Through permanent trackers embedded in their advertising widgets and ‘like’ and ‘share’ buttons, the company can follow users across websites and apps that participate in the Facebook Audience Network.

The most important information about you for the company is not what’s written on your Facebook profile. It’s what you do on your device throughout the day. For example, if you use a fitness app that hosts advertisements, Facebook is able to identify you as the target audience for workout apparel. Using this data made available to them by Facebook, workout apparel companies know to target their advertisements to you via apps, Instagram, and other channels in the Audience Network.

So far, the existing integration of Audience Network and services provided by Facebook and Instagram allows Facebook to map the browsing behavior and activities of the vast majority of users. Apart from GDPR regulations on cookie usage, electronic data collection activities are not comprehensively regulated by any legislation and pose a significant threat to users’ digital rights. They can lead to unsolicited profiling of the audience and manipulation of consumer behavior.

What we’ve done about it

Each crypto wallet contains highly sensitive financial information. At Coin Wallet, we are committed to providing customers the highest level of security and privacy. Not sharing wallet data with third parties is an essential piece of this. In line with this position, we have eliminated all ads completely from our product and barred Facebook from accessing customer data or tracking their usage of Coin Wallet.

As usual, we continue to guard the personal data of all our customers with stringent security measures. These include AES-256 encryption and BIP 39 passphrase encryption. We never reuse addresses and always enable safe access to the web version with Tor or VPNs. This ensures the total privacy and anonymity of your transactions, even to us.

Our data policy reflects our commitment to safeguarding user privacy to the highest extent. If crypto exchanges and other industry service providers adopt these steps, the security of crypto investors can be significantly increased.

We integrated direct credit card, Apple Pay and Google Pay crypto buying in Coin

We integrated direct credit card, Apple Pay and Google Pay crypto buying in Coin

Great news announced by the non-custodial Coin Bitcoin Wallet today. Now you can buy crypto directly from the Coin Wallet using a credit card, Apple Pay or Google Pay.

This new feature introduced yesterday makes the crypto purchase process seamless and user friendly.

When you logged into your account you select the “Exchange” menu. Here you click on the “Buy with Credit Card” button, then a new window pops up, which requires to add the amount in your preferred currency. As default you can select from three currencies: euro, pound sterling and US dollar. The minimum transaction amount is 20 EUR/GBP/USD. In the next step you must add your email address, where the application is sending the 4 digit verification code. After you added the security code, you must agree with Terms and Conditions. As a next step you write your First Name, Last Name and Date of Birth. The process requires to provide your Billing address, and finally you register your credit card number, expiry date and CVV. The purchase is then initiated immediately, and your are a proud holder of the selected token.

As mentioned, the Coin Wallet made a partnership with a fintech company, that enables web and mobile developers to let their users purchase digital currencies using their everyday credit card. Coin Wallet accepts most major credit cards, including Visa and MasterCard, but they accept some virtual, prepaid and debit cards as well. The payment gateway set purchase limits, daily limit is 2.000 EUR/GBP/USD, monthly limit is up to 10.000 EUR/GBP/USD.

We will launch this in September for US users, just waiting on final approval in a few States.

Privacy and 3rd party tracking removed

Privacy and 3rd party tracking removed

Since launching Coin Wallet in 2015 we have always made our users privacy and anonymity the focus. Over the last few years we have included Ads in the wallet to offset the cost of running Coin Wallet and keeping the wallet free. No more.

We have used the Facebook Advertising network to serve the Ads in the wallet. Last year Facebook decided to stop allowing any cryptocurrency advertising to their users, thus banning CoinSpace from using Facebook to attract anyone interested in learning about Crypto and Blockchain. This month facebook announced the Libra, facebook’s own cryptocurrency to compete with Bitcoin.

This has lead to Coin Crypto Wallet deciding to remove all Ads across our entire platform. Over the next few weeks we will be updating all Wallets; iOS, Android and Web to remove all ads as well as any 3rd party tracking these Ad networks might have included. This will help us to return to the Privacy and Simplicity we have always wanted for Coin.

Jonathan

Disclaimer

 

Be safe & secure: We highly recommend that you read our guide on How to Prevent Loss & Theft for some recommendations on how to be proactive about your security.

 

Always backup your key: Coin. You do not create an account or give us your funds to hold onto. No data leaves your computer / your browser. We make it easy for you to create, save, and access your information and interact with the blockchain.

 

We are not responsible for any loss: Litecoin, Bitcoin Cash, Ripple, Ethereum, Bitcoin & Coin, and some of the underlying Javascript libraries we use are under active development. While we have thoroughly tested & tens of thousands of wallets have been successfully created by people all over the globe, there is always the possibility something unexpected happens that causes your funds to be lost. Please do not invest more than you are willing to lose, and please be careful.

 

Translations of Coin: The community has done an amazing job translating Coin into a variety of languages. However, Coin can only verify the validity and accuracy of the information provided in English and, because of this, the English version of our website is the official text.

 

MIT License Copyright © 2015-2018 Coin

 

Permission is hereby granted, free of charge, to any person obtaining a copy of this software and associated documentation files (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions:

 

The above copyright notice and this permission notice shall be included in all copies or substantial portions of the Software.

 

THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

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