Fraud is often premeditated, as in planned by the business owners or marketers in the first place with no intention of utilizing user assets legitimately. Yield App is a licensed entity, our people are in the public domain, and as an enterprise we employ rigorous business processes, compliance audits and oversight of all functions and people within the organization.
Other frauds are perpetrated by individuals, normally because of opportunities created by deficiencies in management, business processes, and organizational controls.
When considering hacking in the digital asset wealth sector, this can fall into two main categories. It could be at an organizational level, i.e. the technology and data infrastructure, or at a structural level for example in a DeFi protocol, pools or a smart contract itself.
While Yield App takes all reasonable steps to mitigate risk associated with management of digital assets, the nature of digital currencies is such that it is possible for them to be compromised and they are therefore not without risk. Please see our Security page for more information.