Cryptocurrency: The New Favourite Target of Cyber Criminals
- Mariya Rose Cyril
- Jul 11, 2022
- 2 min read
A cryptocurrency or crypto is a digital currency designed to work as a
medium of exchange through a computer network that is not reliant on
any central authority, like a government or bank, to uphold or maintain it.
Cryptocurrencies became a worldwide phenomenon and are believed to
replace general currencies within the near future. The Adoption of
cryptocurrencies continues to understand momentum partially due to the
world’s progression towards a cashless society.
Cryptocurrencies run on blockchain technology, which is a set of
connected blocks or an online ledger. Every new block generated needs
to be verified by each member of the network. So, it is impossible to
forge transaction history. Cryptocurrencies are used to buy regular
goods and services. However, the majority of people invest in
cryptocurrencies in the same way they invest in other assets. Due to
cryptocurrency's decentralized nature, buying it can be risky as there is a
high chance of fraud.
As we all know, the cryptocurrency business has expanded and gained
popularity in the last few years. All the cryptocurrency transactions take
place online, therefore the users remain anonymous. They are stored in
a wallet, and protected with a private key, which is similar to a strong
password. Without this password, the owner cannot access it.
According to the report by Kaspersky, in 2022, state-sponsored groups
targeting the cryptocurrency industry will rise. Cybercriminals cannot
resist cryptocurrency because of its digital and anonymous nature. There
are many instances where the APT groups sponsored by one country
have attacked the crypto users of their rival country. North Korea is
known for its provocative actions which have increased tensions with
neighbouring states. It is rumoured that the North Korean authorities are
involved in cryptocurrencies to accumulate illegal assets due to years of
crippling economic restrictions and pressure from other countries. The
attack on the South Korean Bitcoin exchange `Youbit', by North Korean
hackers, resulted in the company going bankrupt. According to the
United Nations Security Council, North Korea used the stolen funds to
support its missile programs.
Cyber criminals continue to come up with new ways to steal the assets
of investors through cryptocurrency attacks. Cyber criminals will take
advantage of manufacturing rogue devices with backdoors to steal
victims' financial assets.
The `BlueNoroff’ APT group, which is part of the `Lazarus’ group
associated with North Korea, has shifted its focus from attacking central
banks to cryptocurrency businesses for the group’s illegal income. These
groups are even building fake cryptocurrency software development
companies to trick their victims into installing legitimate-looking
applications. BlueNoroff is behind a series of attacks on small and
medium-sized crypto businesses. Cybercriminals take advantage of
start-up cryptocurrency businesses because they cannot invest a lot of
money into their internal security systems.
As cryptocurrency has entered the mainstream, cybercriminals are
becoming increasingly interested in cryptocurrency, making it dangerous
for individuals who have large holdings. Companies as well as
individuals should familiarise themselves with the risks surrounding
crypto, as well as popular attack tactics. With more people adopting
cryptocurrency, attackers will continue to target less sophisticated users
with phishing or spear phishing attacks. Since crypto attacks are
increasing, users should be vigilant for social engineering tactics by
email, SMS, etc. Users should only update their devices and software
through approved sources. It is important to store cryptocurrencies in
different wallets instead of storing all of them in one location.
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