Browse by Domains

Cryptocurrency: The New Favorite for Cyber Crimes

Introduction 

Cybercriminals are taking advantage of new potential victims due to the rising popularity of cryptocurrency. 

Between October 2020 and March 2021, the growing price of Bitcoin alone led to a consequent growth in the volume of cybersecurity-related attacks. 

The scope for cybercrime in this domain further increased when some organizations announced that they would continue accepting payments in cryptocurrencies. 

While cryptocurrency’s price increased by 400 percent between October 2020 and April 2021, cyberattacks in this domain consequently increased by 192 percent as per an article published by thehindubusinessline.com on June 30, 2021

Want to know what common pitfalls to watch out for as you seek to invest in cryptocurrency? Keep reading this article to get better informed! 

Rise of Cybercrime and Cryptocurrency  

Cryptocurrency assets exist in decentralized and independent online environments, not held back by the rules of banks or governments. While this makes them more accessible to people, it also exposes cryptocurrency to a higher risk of cybercrime. 

Cybercriminals can hack into trading platforms and steal funds. They typically employ tactics such as cryptojacking, phishing, ransomware attacks, and extortions to steal cryptocurrency. 

Did you know that cryptocurrency is already the most preferred form of exchange in ransomware attacks for cybercriminals? 

And with ransomware, there is a common pattern. Cybercriminals can hide their identities while asking for ransom in cryptocurrency. Further, they can convert cryptocurrency into traditional forms without ever being discovered. The ease of anonymity in the cryptocurrency domain works in favor of cybercriminals, which makes this domain all the more susceptible to cyber-attacks. 

You can also check out this Cyber Crime course by Great Learning Academy.

Cryptocurrency Affects the Security of a Business 

It is quite easy for cybercriminals to be virtually untraceable in the domain of cryptocurrency. They can attack any business and ask for ransom in a digital currency without the fear of being traced. 

With cryptocurrency, no evidence leads back to the perpetrators. And with more and more businesses accepting cryptocurrency across the business world, cybercrime has become quite a threat. 

To elaborate further on how anonymity is maintained by hackers, let’s elaborate on one such maneuver. 

There is a digital ledger system whereby a cryptocurrency is built into the blockchain, which has anonymity built into it. A ransom paid in a cryptocurrency such as bitcoin can be run through a “cryptocurrency mixer”, which obscures the trail of ownership by pooling it with other people’s holdings. 

While the practice itself is not considered illegal, mixer operators can get into trouble if found to have laundered illegally obtained money. And cryptocurrency truly has become a new favorite way for cybercriminals to launder funds. 

Another option to maintain this anonymity is to convert the ransom payment to a different cryptocurrency via a crypto exchange. For this, so-called money mules can be recruited on dark web forums and directed to withdraw Bitcoins out of certain accounts, all the while keeping their identity completely confidential and untraceable. 

How much Cryptocurrency has been Stolen 

As the value of cryptocurrencies has surged, the ransom amounts hackers ask for have also gone up.

For the domain of digital currency, ransomware attacks had the first spike in 2020, when victims paid more than $406 mill­ion ion in crypto­curr­ency to attackers, accord­ing to blockchain analysis firm Chainanalysis Inc. This year, cybercriminals had taken at least $81 million from victims by May, the firm estimated

Cybersecurity firms say companies have paid millions of dollars more in ransoms that have been kept quiet. Being insured against cybercrime may make individuals and businesses more willing to pay ransoms if they are covered under the in­surance policy, since they know they will get that money back from the policy. This is precisely why cybercriminals who specialize in ransomware actively seek out targets that have insurance to maximize the likelihood of getting the payment. 

Types of Cryptocurrency Cybercrimes 

For investors in cryptocurrency, here are some of the most common cybersecurity risks: 

  • Cryptojacking – Cryptojacking is the unauthorized use of someone else’s computer to mine cryptocurrency. Hackers do this by either getting the victim to click on a malicious link in an email that loads crypto mining code on the computer or by infecting a website or online ad with JavaScript code that auto-executes once loaded in the victim’s browser.
  • Phishing – A phishing campaign targets trading platforms with the primary goal of stealing user’s credentials that scammers can then use to ask for profit or ransom
  • Hacked trading platforms – Cybercriminals compromise trading platforms by stealing funds from users.
  • Compromised registration forms – Cybercriminals steal users’ information and then sell it in the black market for profit.
  • Third-party applications – Cyber criminals hack into another application to then steal user data and use it to target further attacks.

What can be done? 

Given that the losses of crypto cybercrime have been rapidly increasing, there has been immense pressure on international and governmental organizations to create laws to regulate this digital currency. 

In April 2021, a private-public partnership called Ransomware Task Force published an 81-page report with recommendations for how governments can protect against and deal with ransomware attacks. The group urged governments to extend Know Your Customer (KYC), Anti-Money Laundering (AML), and Combating Financing of Terrorism (CFT) requirements, which national and international authorities typically enforce against banks within their jurisdiction, to crypto exchanges, kiosks (crypto’s version of automated teller machines) and over-the-counter trading desks.

There have also been calls to ban cryptocurrency altogether due to how easy it has become for cybercriminals to steal. 

However, these two steps are only speculations for now. Businesses and individuals need ways to combat cybercrime in cryptocurrency immediately as they look to increase their investment prospects. 

Businesses and individuals–investing in cryptocurrency–need the training to recognize the latest threats used by hackers. It is necessary to make phishing simulation a part of their overall security training. One should also gain a strong understanding of cybersecurity methods to safeguard cryptocurrency investments. 

Most of the time, hackers give up if a business uses a high level of cybersecurity protection. Just as cybercrime is on the rise, so is the initiative to ensure that cryptocurrency exchanges become regulated and monitored in the safest way possible. 

The best way to protect your business from these cyber attacks is by implementing proper crypto cybersecurity protocols and practices as well as being extra cautious with the applications and sites you use. 

And for this, upskilling is the solution. Upskilling with an intensive cybersecurity course, such as Advanced Cybersecurity Program, will ensure that individuals and professionals working for a business know the absolute ins and outs of cryptocurrency-related cybercrime. A rigorous course is essential to understand how to avoid cryptocurrency cybercrime and recover cryptocurrency (when compromised).

So if you are looking to invest in cryptocurrency shortly, make sure to have a strong cybersecurity skillset to safeguard your assets!  

Maansi Kumar
Maansi is an aspiring researcher and enjoys writing research-focused articles. She attended high school in China and studied Economics & Gender studies in the US. In her free time, you'll find her learning about art history or enjoying independent films. She also enjoys kickboxing, yoga and spending time in nature.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top