There’s no denying that cybercriminals have been capitalizing on the crypto industry for years.
With this market still somewhat in its early stages, a lot of people invest without understanding crypto fully.
Malicious actors can prey on both unsecured platforms and naive investors to steal data and make a profit.
So let’s discuss the most common crypto scams and attacks being used today.
This is wherecryptojacking comes in.
This cybercrime involves the unauthorized use of a victim’s mining hardware to reap mining rewards.
This factor puts a lot of people off the idea of crypto mining.
This should be standard practice across the board and can save you from many other kinds of malware.
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.
This information can then be used to further target the individual, say through a phishing scam.
This random line of letters and numbers can be used to authorize transactions with your crypto.
With your private key, a threat actor essentially has access to your crypto.
Hardware wallets are generally much safer than software wallets, but neither is impervious to hacks.
Additionally, you should never share your private key with anyone.
If possible, your private key should only be made accessible to you and you only.
Phishing Scams
Phishing is a favorite method of cybercriminals, be it for crypto scams or other cyber swindles.
Phishing is hugely versatile and can be used in a wide variety of scenarios.
So it’s no surprise that crypto criminals have opted to use this technique to scam their victims.
Crypto phishing attacks are not all one and the same.
Different cybercriminals are looking for different data, though the end goal is almost always financial gain.
Take the Coinbase phishing scam, for example.
Some Coinbase users interacted with these malicious emails, complying with the requests and providing the information required.
In late 2021, over 6,000 Coinbase users were affected by a phishing campaign designed to steal sensitive data.
However, this link lead to a phishing site that could steal the login credentials when entered.
There are numerous ways through which you’ve got the option to avoid falling for a phishing scam.
Instead, head to your online window and dive into the login page via your search engine.
Scam ICOs
ICOs, or initial coin offerings, are commonplace in the crypto industry.
This is a solid way to amass funds, but can also be exploited by cybercriminals.
A scam ICO will likely never evolve into a legitimate platform.
Depending on how savvy the cybercriminal is, scam ICOs can be extremely convincing.
But there are red flags that you should look out for when you consider investing in an ICO.
Firstly, all legitimate ICOs should have a whitepaper.
This is basically a detailed plan of the project in question.
It’s also useful to familiarize yourself with the alleged team behind an ICO.
This usually comes in the form of a Twitter or Instagram account.
Rug Pull Cryptos
Rug pull cryptocurrenciesare another worryingly prevalent scam in the crypto industry.
If a coin receives enough of a buzz, hordes of people will begin to invest.
This, in turn, will increase the price of the coin.
This huge dump will cause the asset’s price to plummet, leaving investors empty-handed.
Again, you should always check for the whitepaper when considering investing in a new crypto.
Consider this another red flag.
