High-Frequency Theft

Definition ∞ High-frequency theft refers to illicit activities characterized by numerous small, rapid, and often automated fraudulent transactions. These thefts exploit system vulnerabilities or human error to extract value in small increments. The cumulative effect of these small losses can amount to substantial sums. Detecting such activity requires sophisticated monitoring systems.
Context ∞ In the digital asset space, high-frequency theft can target micro-transactions or small liquidity pools across decentralized exchanges. Automated bots might exploit minor price discrepancies or protocol flaws to siphon off small amounts repeatedly. News reports on such events often underscore the need for continuous security audits and real-time anomaly detection within blockchain applications to protect user funds from systematic extraction.