In recent years, the cryptocurrency market has witnessed a huge jump in the number of investors from governments, companies and individuals.
Unlike fiat currencies that banks use to verify transactions, cryptocurrencies rely on blockchain technology that uses a peer-to-peer data transfer system, during the transfer of funds directly from the sender to the recipient.
Although they are encrypted, and there is no central place dedicated to storing data, cryptocurrencies are not completely immune to hacking, because money stored in digital wallets is a much easier target than blockchain technology.
The interest in cryptocurrencies is constantly growing due to the possibility of multiplying investments quickly, but the opportunity to earn easy money always comes with risks and challenges that one needs to be aware of.
The site “Apnex”, which specializes in cybersecurity applications, enumerated five ways in which the cryptocurrency can be hacked:
- Bargain SMS Verification
- Mobile Applications
- Secret key theft
Cryptocurrency and Phishing:
The most common and effective way to steal cryptocurrency is to get people to disclose their login credentials themselves, by faking legitimate websites and making them look like real people who only want to exchange cryptocurrency.
Sometimes, in order to increase this effect, potential targets receive “phishing confirmation” or “potentially hacked” emails, which contain links to fake websites where you need to enter authentication details that will be stolen from you.
He advised the site to check the spelling of the URL (eg http://binnance.net/, instead of https://binance.com), and the SSL certificate (the little padlock in the address bar) before entering any sensitive details.
Bargain SMS Verification
This type of attack usually targets people who are involved in operations where cryptocurrency is used.
In many cases, two-factor authentication (the two security steps of personal protection) are activated on mobile phones, and the main objective of this process is to intercept verification messages sent via SMS.
These coins can be stolen through various methods such as wiretapping, SIM cloning, or voice phishing, either to confirm malicious transactions or to “restore” access to the crypto wallet.
After carrying out the largest theft in the history of cryptocurrencies, the person responsible for it reveals his motives and returns hundreds of millions of dollars pic.twitter.com/K9j1nmtgPz
— Ana Alaraby – Ana Alaraby (@AnaAlarabytv) August 13, 2021
Legacy malware is still one of the most important hacking methods when it comes to hacking encryption.
The device is targeted by keyboard-stealing software, stealing the passwords and PINs you enter; And through programs known as “script injection” into web pages, so that when a legitimate user browses these programs, they are redirected to malicious websites that sometimes cannot be noticed in the browser, in order to steal sensitive details, or download malware, ransomware ( ransomware) on users’ computers.
Not all mobile applications for cryptocurrency trading are considered secure due to their weak structure and security gaps; Thus, it is vulnerable to most cyberattacks, such as a middleman attack or data leakage, such as API keys, where sensitive customer information is stored in unencrypted databases.
There may be various targets for hacking mobile applications, ranging from brute force attacks, also known as a brute force attack, to guessing PIN numbers, or performing unauthorized actions on behalf of the user with the aim of manipulating the market position, i.e. The centers responsible for the cryptocurrency shopping decision, by creating an order or dropping the positions of some cryptocurrency.
Secret key theft
The site explained that to perform any financial operations using encrypted currency, the user needs two keys: public and private. The private key is available only to its holder and is used as a digital signature to authorize the user to perform all transactions, and the public key is used to confirm its private counterpart.
The private key is stored in the crypto wallet, and if the user loses the private key, they will not be able to use their assets. And if someone gets the private key, they can transfer all the money to their wallets easily. Since it is almost impossible to trace crypto transactions, the money will be lost forever.
That is why hackers use all possible methods to steal these keys starting from browser add-ons, spell-checker applications and common system vulnerabilities. Hot wallets, which are usually active on a central system, are the fertile ground for these hackers.
On the other hand, there are offline cold wallets, which are usually kept as separate devices. These wallets are a safer option, but if you lose them, you also won’t be able to dispose of all your digital assets.