Cryptocurrency Cyber Attack Prevention Methods

August 12, 2024 By Nancy William No Comments 6 minutes

Why are cryptocurrency cyber attack prevention methods needed? All types of online financial transactions carry a level of risk, and cybercriminals are constantly exploring sophisticated techniques to scam consumers. There are lots of steps that people can take to protect themselves online, including using a VPN, carrying out good password practice, and minimizing the sensitive information they provide.

Cryptocurrency Cyberattack Prevention

Learning how to mitigate the risk of cybercrime will significantly improve the protection you provide for your investment. Cryptocurrency expert Ichiba Balin regularly reviews emerging investment opportunities, helping consumers identify cryptocurrencies with great potential.

Some investment opportunities come with enhanced security, including new cryptocurrencies like DAWGZ, DOGE14, and BDJ which list high-security protocols as one of their major selling points (source: https://techreport.com/jp/cryptocurrency/upcoming-binance-listings/).

Whether you own one of these assets or a more established coin like Bitcoin, we have taken a look at some of the top ways to secure your crypto and ensure you don’t become a crime statistic.

TIP – Always take active caution while gambling online or dealing with cryptocurrency. The rate of cyberattacks is high and increased. Ensure that your connection and data are encrypted with the help of the best VPN. FastestVPN provides high-end security measures to mask your IP, protect data, and prevent phishing scams from targeting you.

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Check the Legitimacy of Websites Before Sending Crypto

One of the best ways to protect your cryptocurrency is by being sure of who you are sending it to. While it is not entirely impossible to reverse crypto transactions, it is extremely difficult, and sending crypto to scammers or illegitimate websites can result in consumers losing their digital assets for good.

You should never send money or cryptocurrency to strangers that can’t be properly identified. This is also true of websites, no matter how professional they look, and you should always check reviews.

One benefit of businesses that accept cryptocurrencies is that all transactions are recorded on the blockchain. This makes it easier for external auditors to check the legitimacy of transactions and provide greater transparency.

Research the Most Common Threats to Cryptocurrency Owners

The best way to avoid being the victim of online criminal activity is to educate yourself about potential threats, how to identify them, and how to avoid them. We have compiled a list of the most common threats that cryptocurrency owners will face.

Phishing

Phishing operations attempt to gather consumer information by creating websites or posing as legitimate operators by emailing their customers. The aim is for users to share login details that will allow them to access their accounts. Links can also be used to load mining codes onto the victim’s computer.

These attempts can be avoided by consumers by being vigilant about any contact that might seem out of the ordinary. Never divulge login details or other personal information to third parties or by email.

Malware or Ransomware Attacks

Ransomware and Malware attacks attempt to gain access to computers by installing malicious software. This can then be used to encrypt data and hold it hostage for a ransom or to steal cryptocurrency directly.

Ponzi Schemes

Ponzi schemes have been around for decades and rely on a constant flow of investments to pay off other investors. When this eventually stops, the scheme collapses leaving those who entered the scheme later with nothing.

Fake Crypto Offerings

Investing in cryptocurrency is exciting and if you are lucky can make you a lot of money. Investors will keep an eye out for new ICOs (initial coin offerings) where they can get coins at a low price.

Fake ICOs are when scammers create websites and build hype around a new launch that doesn’t actually exist. When they get their first round of investments, they vanish with the money.

Misleading Pump-and-Dump Crypto Schemes

Pump-and-dump schemes are a ploy to mislead investors and create hype around a new cryptocurrency. This is done by inflating the price of smaller cryptocurrencies by investing and spending time creating buzz across social media and messaging apps.

The scammers wait until the crypto gains value before dumping their stock and letting the cryptocurrency crash again.

Review sites can be a good way to determine the true value and potential of a cryptocurrency rather than investing based on its hype.

Fake Exchanges and Wallets

Fake wallets or exchanges allow scammers to hijack transactions and get users to download their software that sends crypto transactions to the cybercriminals’ wallets instead of the consumers.

Giveaway Scams

Social media is rife with scammers and giveaway scams are a popular way of trying to dupe consumers out of their cryptocurrency. These work by cybercriminals posing as prominent figures or accounts and offering crypto giveaways. They claim that consumers can enjoy free cryptocurrency by sending a small amount to verify themselves. No free crypto is ever sent and the scammers vanish with the consumers’ crypto.

Cold Wallet Storage

One of the best ways to keep your cryptocurrency secure is by keeping it in a cold wallet. This is a way to keep your cryptocurrency safe by holding it offline. External storage can’t be accessed by cybercriminals employing malware, ransomware, or other viruses.

The cold wallet storage solution stores the user’s private key on a memory stick. This can then be connected via Bluetooth or USB so the user can access their cryptocurrency.

While this protects users from Cybercriminals, it does give them a physical object that they must protect. Many will be password-protected, but keeping them in a secure location is essential.

A UK crypto owner is a great example of why it is so important to keep your external crypto wallet safe. James Howells claims that he had 8,000 bitcoins on a hard drive that was mistakenly sent to a landfill site. This now has an approximate value of ¥685,100,000,00.

Conclusion

Cybercrime in Japan was up by 8.3% on 2022’s figures after 19,033 phone and cyber scams were reported. This is down to the proliferation of online activity and smartphone use, with most day-to-day tasks including banking and shopping being carried out online.

As consumers become more reliant on mobile technology, cybercrime figures will inevitably grow, underlining the importance of security precautions.

As the popularity of cryptocurrencies improves and more businesses accept it as a payment method, more cybercriminals will begin to target crypto users. By remaining vigilant with all crypto transactions whether it is transferring crypto to another user, making an investment, using crypto gambling sites, or spending it, users can significantly reduce the risk of falling victim to cybercriminals.