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  • 6 most popular types of crypto attacks and how to protect against them


    Cybercriminals have been cashing in on the crypto industry for many years, taking advantage of the fact that the market is young and many people invest in it without fully understanding how it works. Therefore, attackers easily use both security breaches in crypto platforms and naive investors, stealing money and personal data from them. Therefore, in order not to fall for the hook of intruders ourselves, let's look at the most popular types of crypto attacks.

    1. Cryptojacking

    The idea of cryptojacking is simple – attackers try to mine cryptocurrency on other people's devices by infecting them with special cryptojacking software. By infecting a victim, attackers can easily make money by using the computing power of an unsuspecting user without spending a dime. In addition, cryptojacking software usually works in a way that does not draw attention to itself, which makes it much more difficult for the average user to detect malware and remove it.

    What we recommend: Keep an eye on the speed of your device (cryptojacking software usually slows down your system a lot) and keep an antivirus solution handy to stay safe at all times.

    2. Dusting attacks 

    To make it clearer, first we will analyze the meaning of the term “dusting” in the cryptosphere.

    Dusting is such a small amount of coins or tokens that people often just ignore it. For example, the smallest unit of Bitcoin is 1 Satoshi (0.00000001 BTC).

    The attackers found a way to use the dust - they began to scatter it on random crypto wallets, and then track all the transactions of the "dusting" wallets, associating crypto addresses with the companies and individuals behind them. After collecting enough information, the attackers begin to intimidate the victim, threatening to leak their personal data to the dark web if a certain amount of cryptocurrency is not paid. Typically, the victims of such an attack are people who store large amounts in their crypto wallets.

    3. Private key theft

    When it comes to managing a cryptocurrency, a private key is an incredibly valuable piece of data. This random set of letters and numbers is used to create a digital signature, without which it is impossible to conduct any cryptocurrency transaction. But if a hacker gains access to the private key, then he, in fact, gains access to all the victim's crypto savings.

    To reduce the chance of your private key being stolen, it is extremely important to choose a reliable crypto wallet. Hardware wallets are usually much more secure than software wallets, but neither is immune to hacking. The best thing you can do is find a wallet with the highest level of security that uses PINs, backup seeds, biometrics, and timer locks.

    Remember: under no circumstances should you share your private key with anyone. It should only be available to you.

    4. Phishing attacks

    Phishing is a favorite method of cybercriminals, be it cryptocurrency scams or other cyber scams. Phishing is versatile and can be used in a wide variety of scenarios. Therefore, it is not surprising that crypto criminals prefer to use this technique to deceive their victims. Not all crypto-phishing attacks are the same, as different cybercriminals are looking for different data, although their ultimate goal is almost always the same - making money.

    What to do to avoid becoming a victim of phishing: use sites and anti-virus software that automatically checks links, as well as anti-spam filters. Do not click on links from emails that are spam or from unknown senders.

    5. Fraudulent ICOs

    ICO (initial coin offering - issuing an internal cryptocurrency of a blockchain project and selling it to investors) is a common occurrence in the crypto industry. It is through this method that crypto startups can raise funds by selling their own coins or tokens to interested investors. This is a reliable way to accumulate funds, but it can also be used by cybercriminals.

    Fraudulent ICOs raise funds from naive investors and disappear once enough money is raised.

    To avoid becoming a victim of this kind of scam, remember a few simple things:

    • All legitimate ICOs must have a clear and understandable white paper - a document that describes the very idea of the project and the purpose of raising money;
    • Find out who is behind the project and find their pages on social networks.

    6. Rug Pull

    Rug pull is a common scam where developers withdraw funds from a project and disappear with them. At the same time, the owners of tokens are left with illiquid assets.

    In order not to be left with illiquid tokens in your hands, do not forget about the white paper and checking how much cryptocurrency the developers themselves have.

    Summing up

    Today, fraud and various kinds of attacks have become commonplace in the crypto industry. Over the past ten years, cybercriminals have developed many scams targeting cryptocurrencies, and every year they make them more and more difficult. Therefore, in order not to become a victim of intruders, keep in mind information about possible crypto attacks and our tips for protecting against them.

    Author DeepWeb
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