June 14, 2022

Cyberspace Is the New Frontier: Why Crypto Users Are Being Attacked and How To Avoid It

photo of a cyber criminal

Cryptocurrency is becoming more popular, but it’s also attracting scammers who want to take advantage of people’s lack of knowledge.


The anonymity offered by cryptocurrency has made it an attractive financial resource for threat actors. The majority of attacks targeting this new technology have been pre-existing phishing patterns that were observed in prior years before blockchain-based currencies existed.


In recent months, cybercriminals have been targeting crypto users with increasing frequency. Popular crypto platforms such Binance, Celo, and Trust Wallet are being targeted by hackers who pretend to be one of your favourite crypto companies in order to trick you into giving up sensitive information such as wallet codes or private keys.


A new report said, “As cryptocurrency and non-fungible tokens (NFTs) become more mainstream, and capture headlines for their volatility, there is a greater likelihood of more individuals falling victim to fraud attempting to exploit people for digital currencies.”


The Proofpoint researchers noted that cybercriminals have been using threats related to digital tokens and finance, such as traditional fraud leveraging business email compromise (BEC) or activity targeting decentralized finance (Defi) organizations that facilitate cryptocurrency storage and transactions for possible follow-on activities. It’s reported that $14 billion in 2021 losses were attributed to this type of criminal activity.


Cryptocurrencies are not as difficult to exploit – you just need the right skillset. Some common techniques observed when attacking this community include credential harvesting, cryptocurrency transfer solicitation like BEC, and the use of basic malware stealers that target cryptocurrency credentials. These methods can be used to capture sensitive information which is necessary when spending or transferring cryptocurrency.


Crypto users should be mindful of the security measures in place for their cryptocurrency wallets. To protect your digital currency against cyberattacks, you need to secure the wallet that holds it. There are many ways of doing this but here are some of the few techniques that we think are useful:


  • Usage of Cold Wallets – Cold wallets are the most secure way to store your cryptocurrencies. These offline storage devices keep private keys encrypted, making them immune to cyberattacks and giving you peace of mind that no one else but yourself will have access or control over it.


  • Always use a Secure Internet – When you’re online, make sure that your provider is secure and use an IP masking service like VPNs to keep yourself anonymous. Even if it’s at home on the network connection (which should always be protected by a router), never enter public WiFi areas for security reasons.


  • Maintaining Multiple Wallets is not that bad – There isn’t any limitation with wallet creation – you can invest in a variety of wallets to diversify your cryptocurrency investments. Create one wallet for daily transactions and keep the rest elsewhere, protecting yourself from any breach that may occur on this website or elsewhere online where hackers might get access to personal information like passwords.


  • Always secure your personal device – Hackers are always looking for ways into your personal devices in order to get access to information that you may value. Your best defence is up-to-date virus definitions, strong anti-virus software and a firewall designed specifically to defend against these attacks by hackers who want nothing more than steal your data or send messages with dangerous content like phishing warnings about product updates.


  • Regularly change your password – While we cannot underrate the importance of a strong password, it is worth noting that most people are using very similar passwords across multiple accounts. This makes them vulnerable to being accessed by hackers who may try and take advantage if you have poor security measures in place like choosing simple phrases or symbols as passcodes! Make sure your passwords are complex enough so they can’t easily guess what yours might’ve been used for while also being changed on an annual basis.


  • Don’t Get Phished – Phishing scams are all too common in the crypto world. Make sure that you’re not duped by an email or ad promoting something related to cryptocurrency transactions – and don’t click on any unfamiliar links received while scrolling through your newsfeed either.


Conclusion: The bottom line is that cryptocurrency is here to stay, and with it comes the risk of cyberattacks. However, by following the essential safety precautions and being vigilant about security news, you can protect yourself against these threats. Have you updated your security knowledge in light of recent events? Are you using a secure wallet? Let us know your insights on our social media channels – we are on Facebook, Instagram, and LinkedIn!