There is no denying that cyber criminals have been taking advantage of the crypto industry for years. With this market still in its nascent stages, many people invest in crypto without fully understanding it. Malicious actors can prey on both vulnerable platforms and gullible investors in order to steal data and make a profit. So let’s discuss the most common crypto scams and attacks being used today.
1. Cryptojacking
Today, the crypto mining industry is undoubtedly huge, with millions of miners around the world looking to make a profit by securing the blockchain network. But with mining being so profitable, malicious actors have also turned their attention, looking for ways to capitalize on the mining industry without using their own specialized hardware.
This is where cryptojacking comes in. This cybercrime involves the unauthorized use of a victim’s mining hardware to reap mining rewards. Mining hardware can be very expensive to both buy and operate, and even mining crypto on a regular laptop can consume a lot of power and increase your electricity bill. This factor keeps many people away from the idea of crypto mining.
But by hijacking someone else’s hardware, cryptojackers stand to make huge profits without expending much of their computing power. Cryptojacking software, which is commonly used in this enterprise, can run on someone’s device without drawing attention to itself, making it an even more difficult problem to notice. However, if you notice that your device is acting much slower than normal, then cryptojacking software could be the culprit.
Because cryptojacking software is usually a form of malware, you should always ensure that all your devices are equipped with antivirus software. This should be standard practice across the board and can protect you from many other types of malware.
2. Dust attack
In the crypto sphere, the term “dust” is used to refer to the small, negligible amount of crypto that may be left behind after a transaction. These amounts are so small that they have no real financial value. However, Dust can be leveraged maliciously to invade the privacy of crypto wallet holders.
In crypto dust attacks, the malicious actor will perform a dust transaction (i.e. send dust) to multiple wallet addresses. By doing this, the attacker does not lose financially, but can then reveal the identity of the targeted wallet holders. This information can then be used to target the individual further, such as through a phishing scam.
Large amounts of crypto are usually targeted in dust attacks, as there is a lot of potential profit for the attacker.
3. Private Key Theft
When it comes to managing cryptocurrency, a private key is an incredibly valuable piece of data. This random line of letters and numbers can be used to authorize transactions with your crypto. Private keys are often kept in a crypto wallet, which can either come in the form of software or hardware designed to provide a secure storage option.
With your private key, a threat actor essentially has access to your crypto. Chances are, if a cybercriminal gets hold of your private keys, they will empty your wallet just as quickly.
To reduce the chances of private key theft, it is paramount that you choose a highly reputable and trusted wallet with solid security features. Hardware wallets are generally more secure than software wallets, but none are impervious to hacks. The best you can do is find a wallet with the highest level of security, including a PIN, backup seed phrase, biometric login, and timed lockout.
Additionally, you should never share your private key with anyone. Even if you trust someone, their failure to securely store the information you provide could result in the theft of your assets. If possible, your private key should be accessible to you and you only.
4. Phishing Scams
Phishing is a favorite method of cyber criminals, be it for crypto scams or other cyber frauds. Phishing is extremely versatile and can be used in a wide variety of scenarios. It is therefore no surprise that crypto criminals have chosen to use this technology to scam their victims.
Not all crypto phishing attacks are the same. Different cyber criminals are looking for different types of data, although the end goal is almost always financial gain.
Take, for example, the Coinbase phishing scam. In this malicious campaign, cyber criminals will email Coinbase users claiming that they need to provide information due to some sort of problem with their account, such as suspicious activity. Some Coinbase users interacted with these malicious emails, complying with the requests and providing the required information.
At the end of 2021, there is a threat to steal sensitive data.