The cryptocurrency industry is facing a growing threat of fraudsters, according to a recent report. Despite this, cybersecurity firm BlackBerry has managed to stop over 1.5 million crypto-related attacks in just two months. This article will explore the risks presented by the malicious actors of the crypto space and the progress made in battling them.
1. Crypto Industry Vulnerable to Fraudsters
Cryptocurrency transactions have become relatively easy to do, especially as more users increasingly transact online. However, the crypto industry has become more vulnerable to fraudsters and other malicious actors. Here are four ways fraudsters take advantage of transaction loopholes:
- Phishing: Fraudsters craft emails and messages that appear to come from a legitimate source, though they are designed to steal user’s personal and financial information. It is particularly easy for them to do, since the majority of cryptocurrency transactions rely on online communication.
- Ponzi and pyramid schemes: Although some cryptocurrency-based Ponzi and pyramid schemes are very promising, users must be careful to recognize those that are not authentic. Fraudsters use promises of high returns to attract potential investors, without any intention of actually delivering on their promises.
- Hacking: Hacking is also a common way that fraudsters take advantage of the crypto industry. Oftentimes, hackers will target digital wallets to steal cryptocurrencies, or even online exchanges as a means to take investor funds.
- Fake tokens: Lastly, fake tokens have become a popular way for malicious actors to defraud users in the crypto industry. Fraudsters create and distribute fake forms of a legitimate cryptocurrency to unsuspecting users, who then can’t convert the tokens to its real form.
Fortunately, the rates of fraud in the cryptocurrency industry is at an all-time low, due to the proactive steps taken by users, companies, and governments. Nevertheless, it is important to remain vigilant of any suspicious activity and ensure proper security measures are taken when investing in cryptocurrencies.
Cryptocurrency is a powerful tool, but it’s also extremely vulnerable to fraud. As long as users take appropriate precautions, their assets should remain safe.
2. BlackBerry Stops Millions of Online Attacks
BlackBerry recently released an update that strengthens their security systems and makes them better equipped to face cyberthreats. Research conducted by the Canadian tech company reveals that their improved platform stopped more than 100 million attempted online attacks between April and June of 2020.
The software update seeks to protect companies with shared IT systems from security vulnerabilities. It includes features like multi-level authentication, compromised password protection and device-based authentication. This combination of tools makes it difficult to access data without the correct credentials, leaving malicious attacks fruitless.
The update was released as a part of BlackBerry’s Advanced Security Corporate Network offering. This program establishes regulated access levels making it easier to differentiate between different employees. Companies wanting to take advantage of the service must have a BES12 server installed.
Security data from the BlackBerry platform is controllable in real time. This makes it possible for companies to anticipate any malicious behavior before it becomes a serious problem. The update is included as part of a subscription to BES12, BlackBerry’s flagship product.
3. Understanding Fraudsters Tactics in Crypto Industry
The digital currency space is huge and often unregulated, so it attracts fraudsters who aim to swindle others. Crypto fraudsters target investors and even exchanges. Understanding the tactics used by fraudsters benefits traders by helping them to spot and avoid such schemes.
Hype and Promises Fraudsters entice investors with promises of guaranteed profits. They claim they have access to secure platforms offering guaranteed returns. They build hype and present unrealistic promises that no legitimate asset manager could ever guarantee.
Pump and Dump A common scam, pump and dump is a type of stock market fraud which involves artificially inflating the price of an owned asset, through creating misinformation or spreading positive rumors. It works by enticing realistic investors who buy the asset when the value is artificially driven up, and later selling it when the price drops again.
Fake ICOs Initial Coin Offerings (ICOs) are also used dishonestly. Scammers create a phony ICO aiming to lure people in. They often promise investors a large return on their purchase, but the project never actually materializes and investors are left empty handed.
Advance Fee Fraud This is also known as a 419 scam, in reference to the 419 criminal code of Nigeria. It evolves an individual being asked for a sum of money upfront, with a promise of a larger sum of money later in return. This is similar to the hype and promises tactic, but relies on someone actually sending money upfront.
- Stay vigilant and verify that the company you are investing in is legitimate.
- Be mindful of promises of unrealistically large investment returns.
- Work with a highly rated, reputable broker.
- Research the company thoroughly.
- Make sure you understand the terms and conditions.
4. Tips for Protecting Cryptocurrency Assets
Cryptocurrency owners need to take extra steps to protect their assets due to the lack of government oversight and the decentralized nature of blockchain technology. Here are a few :
- Use Strong Passwords. Cryptocurrency owners should create strong passwords that use a combination of upper and lower case letters, numbers, and symbols when setting up wallets. Avoid using the same password for multiple wallets as attackers can use this information to gain access to multiple accounts.
- Use Different Wallets. Try to spread out assets and store them in different wallets. This prevents a single point of failure and makes it harder for attackers to gain access to all funds.
- Secure Wallets. Many wallets give users the option to enable two factor authentication or biometric authentication. In addition, it is important to save copies of recovery seed phrases or access codes in safe places. Do not store these items on a mobile device or laptop.
- Keep Funds Offline. The best way to protect funds is to store them in an offline wallet, such as a paper wallet or cold storage. However, these methods should only be used for larger amounts of cryptocurrency and fewer transactions.
Cryptocurrency owners should take the necessary steps to protect their assets. Following the tips outlined above can help protect accounts from theft, fraud, and other malicious activities.
These staggering numbers seem to have highlighted that as crypto investment continues to increase, so too does the opportunity for cybercriminals to take advantage of vulnerable systems. As such, it is more important than ever to stay ahead of possible threats and abide by the necessary security measures, whether that means educating oneself or investing in additional security infrastructure.