Security issues Revolving around the Crypto industry
Cybersecurity Risks in Cryptocurrency
Security concerns surrounding the crypto space are proliferating - now more than ever. Several techniques are used to breach and steal users' data, private information, and funds.
As a crypto investor, you should know about major risks and possible threats. Keen to learn why such risks exist in the crypto space? Without wasting any time, let's jump right to them!
First on our list is phishing: a common technique used by hackers to steal users' personal information. All a hacker does is impersonate a reliable and trustworthy entity and coerce the user into giving them access to their crypto keys.
Let's talk about how it works.
Phishing usually starts with a hacker sending a fraudulent email.
If the email interests users, they may be compelled to click on links or open attachments, causing the hacker to gain access to confidential information. Sometimes, it also leads the user to download malware on the computer.
In crypto, phishing attacks are carried out by hackers who impersonate credible authorities such as crypto trading platforms. Hackers send out legitimate-looking emails, coaxing users to click on malicious links, ultimately enabling the hackers to gain access to users' digital assets.
One of such noteworthy examples of crypto heists in history is the Ronin Network hack, which hosts the popular crypto-gaming network Axie Infinity. In this game, people earn through NFTs and cryptocurrency. However, it's reported that the hackers wiped off the company's colossal sum of about $625m through phishing. Surprisingly, the game had many users, creating security leaks for hackers to exploit.
Malware is malicious software designed by cybercriminals to gain control of a computer and slowly damage it. The software may interfere with the computer's security, causing the victim to lose access to his device. Some common types of malware include viruses, trojans, worms, spyware, ransomware, and adware.
Now you have a common understanding of malware. Let's see what crypto-malware looks like. In essence, it's malicious software designed to conduct crypto-jacking or criminal crypto mining - illegal ways to gain the computing power of a device and use it to mine currencies.
Unlike malware, Crypto-Malware doesn't steal data from its host. Instead, it gives the hacker unauthorized use of the host's computer, allowing them to use significant computing power without the user's knowledge.
Here's what happens:
- The crypto-malware reaches a computer through malicious links or software.
- The malware gains access to the computer
- Malware uses the computer's power to mine cryptocurrencies
- The mined coins are redirected to the hacker's wallet.
You might be thinking that what's the harm with crypto-malware, right? Well, the malware drains the power of the victim's system. As a result, the productivity and multitasking ability of the computer gets affected, making it slow.
This illegal activity became widespread when the prices of Bitcoin and some other crypto coins escalated in 2017.
One of the high-profile examples of crypto-jacking was when eight apps were silently hosted on app stores and were mining cryptocurrencies from users' devices. Fortunately, Microsoft took notice of the illegal activities and removed these apps.
Illicit Trading Platforms
With cryptocurrency being the hot buzzword, the crypto market is in full swing, attracting numerous people. However, hackers never seem to stop. They are creating new illicit trading platforms, offering the investors to invest and trade through the platforms.
Such platforms may scam the investors, coerce them into giving money, and then vanish in thin air. One such notorious example of an illegal trading platform is the case of OneCoin, which turned out to be a multi-level marketing scam.
Tip: Remember, not all trading platforms are to be trusted. Do your research before stepping into the crypto arena.
Security Risk In Cryptocurrency Accounts
What makes the security in cryptocurrency risky is the use of keys - a unique set of numbers and letters. They are quite safe, but once you keep your investment in a wallet or a trading platform, things start to get risky.
But why? Well, cryptocurrency is decentralized, which means it operates without a central authority. Plus, it has no legal structures like a bank, making it almost impossible to track hackers and recover funds.
If hackers gain access to a computer, they can use the private key to empty the user's digital assets.Final Verdict
Cryptocurrencies are a trending investment nowadays, and it's something that may promise a good return. However, it's also a sweet spot for cybercriminals, so it's high time you get extra cautious about your investment.
Our No#1 tip is to thoroughly do your due diligence and research before investing in any trading platform. We also suggest you pay extra attention to the well-crafted emails you receive regarding cryptocurrencies to avoid malware or ransomware attacks.
If you want to learn more about such informative crypto posts, check out Web hooters.
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