The cryptocurrency market is expanding exponentially, but the recent wave of cyber attacks and scams has shown the industry is struggling on the security front. Javed Samuel, vice president of NCC Group’s cryptography services, told SearchSecurity that the increase in attacks correlates with the increase in use and in the number of players in the currency and platform markets.
Just last year, crypto scammers stole a record $14 billion. So what are these risks?
1. Hackable trading platform
As mention by retailtechinnovationhub.com: “While cryptocurrency is widely known for its transparency, it’s also well known for being vulnerable to crypto exchange hacks. Cybercriminals tend to target crypto exchanges because a single data breach could allow them to steal thousands of users’ assets.
Medium, point out that: “The reason for trading platform hacks being so common in the cryptocurrency market, even with some of the top exchanges and brokerages, is that the methods hackers are developing to use against trading platforms are always evolving.
Cryptojacking is a type of cybercrime that involves the unauthorized use of people’s devices (computers, smartphones, tablets, or even servers) by cybercriminals to mine for cryptocurrency. Like many forms of cybercrime, the motive is profit, but unlike other threats, it is designed to stay completely hidden from the victim.
Cybercriminals hack into devices to install cryptojacking software. The software works in the background, mining for cryptocurrencies or stealing from cryptocurrency wallets.
Another way cyber criminals utilise cryptojacking is through the cloud. ‘Cloud cryptojacking’ occurs when hackers steal an organisation’s credentials to gain access to their cloud environment where they run their cryptojacking code, rather than on a local device.
3.Crypto phishing scams
Scammers use psychological manipulation and deceit to gain control of vital information relating to user accounts. These types of scams condition people to think that they are dealing with a trusted entity such as a government agency, well-known business, tech support, community member, work colleague, or friend.
phishing scams target information pertaining to online wallets. Specifically, scammers are interested in crypto wallet private keys, which are the keys required to access funds within the wallet.