Because many people are not yet technologically savvy, fraudsters are taking advantage of potential victims as a result of the expanding popularity of cryptocurrencies. As the price of Bitcoin increased from 2020 to 2021, so did cyberattacks. The frequency of cybercrimes surged even more once businesses began accepting cryptocurrency payments. People are purchasing bitcoin because it is becoming more and more popular, but they are not sufficiently knowledgeable about how to avoid scammers and cybercriminals.
They are simple to access because cryptocurrencies exist in internet spaces free from the restrictions of banks and governments. However, because bitcoin is so accessible, it also puts us at risk for more crimes. Data from trading platforms can be hacked by cybercriminals, who can then exploit your information. To steal cryptocurrency, they employ strategies like phishing, ransomware attacks, crypto jacking, and extortion.
The common pitfalls that we should all be aware of before investing in cryptocurrencies are listed below.
Phishing
Cybercriminals are very likely to be able to steal your cryptocurrency or drain your bank accounts via phishing techniques. Many employ two-factor authentication because of cyber dangers, but it is not always effective. To circumvent this, fraudsters utilize reverse proxy phishing, also known as “session hijacking”.
By generating false domains and tracking users who transit through them, this method gets around two-factor authentication and allows money theft. When the victims submit their credentials, the server duplicates them and logs them into the genuine website. Phishing assaults can be classified into four categories: spear phishing, DNS hijacking, phishing bots, and false browser extensions.
Crypto Jacking
Some online thieves use your devices’ or machines’ processing capacity to mine their own coins rather than stealing money directly from wallets. Typically, botnets engage in covert mining, which is accomplished through malicious links made by the hacker. The hacker’s spyware stealthily mines cash while running in the background on the victim’s computer.
Because they are concealed in the victim’s equipment, these miners go years without being discovered. These gadgets require advanced programming skills and knowledge to design, and because they are so secretive, criminals can use them for longer periods without being discovered. The victim simply needs to download the program for the attacker to gain access to the target’s PC. To draw users, these botnet miners are advertised as “passive income” online.
Although the botnet miners don’t directly harm you and may not appear dangerous, they do reduce the processing performance of your machines, which lowers productivity if you work in a corporate environment. Keep an eye on your CPU’s usage and how it responds to spot miners.
Cryptocurrency Clipping
Cryptocurrency clipping, to put it simply, is when you send money by copying and pasting the recipient’s wallet address into a third-party app from your smartphone, giving access to the hacker who is monitoring your smartphone. By using your computer, the hacker will copy his own address and paste it in the receiver’s place. Without checking the credentials again, you run the risk of sending the money to the incorrect recipient.
This is the simplest method of stealing your money. So in this case, the least you can do is double-check the address and refrain from downloading phony third-party apps to protect yourself from such attacks.
Dusting Attacks
Dusting attack involves scammers and hackers sending very little amounts to the accounts of cryptocurrency users to compromise their anonymity. They then follow the users’ financial actions in order to identify the businesses or individuals who are the owners of these wallets.
The best defense against such dusting attacks is to create fresh wallets for each transaction and keep track of each coin.
How to Keep Your Wallets Safe
Cryptocurrency exchanges are the most typical type of ransomware attack for invaders. They think it to be the simplest because they can effortlessly convert cryptocurrencies into conventional currency without anyone noticing. The ease of use and privacy of cryptocurrencies make it simpler for fraudsters to muck around with the domain. In this case, one thing that can save you from cybersecurity attacks is a secure internet plan. Many internet service providers offer internet security plans such as Windstream internet.
Kinetic by Windstream offers a Kinetic Secure package, which is best to make your network secure. The internet security plan saves you from cyber-attacks such as phishing, by blocking third-party apps and websites. It saves you from malware, ransomware, and several different kinds of newly emerging viruses. So, subscribe to Windstreaminternet and Kinetic Secure to make your network completely secure.
Final Thoughts
Cyber hackers are becoming more proficient as technology advances and cryptocurrencies become more and more popular. Learn about the various types of attacks that could occur and the potential defenses that might be used to protect oneself from them. If you also own cryptocurrency, it is best to stay cautious and take necessary precautions because better safe than sorry.
