The cryptocurrency industry is going through hard times to say the least. Fraudulent activity is on the rise and now there is more and more attention coming from criminals who have plagued the digital asset industry. This is worth over $270 billion so far and there has been plenty of research to say that the number of hacked accounts on the exchange is on the rise. So far the number stands at around 369% and this is shocking to say the least. The recent research shows that the number of hacked accounts is up from last year as well and hundreds of accounts have been compromised. Of course, something needs to be done about this.
The US, China and Russia are the three countries that have been affected by the attacks and a third of all victims are actually in the US. The data comes from the Group IB and they have found 50 botnets so far. This is a tool that is used by cybercriminals to try and launch attacks. They are remote controlled and they are able to get deep inside the network. They have the ability to launch attacks on a network as well as on the users. This means that they are very dangerous and over 55% of them are coming from the US. 21% are coming from the Netherlands and the rest are coming from places such as Ukraine and even the Netherlands as well. A big drawback of the transactions that are happening on the blockchain is that anyone can look at them. When you go through a standard bank you will see that a lot of the information is kept under wraps. If you were to gain access to a bank account then you would have to use a Trojan. This could be XBot, Hawkeye or even AZORRult. They would work by disguising themselves as a harmless file or in some instances a program. The attacks have become far more sophisticated over the years and this is proving to be a real problem. Data from the group IB has shown that the hackers are now adopting tools to try and attack banks and even hijack exchanges and wallets. For example, they use a fake ID to try and get into the SIM card for a user and from there they will try and recover the password. When they have this, then they have control overt the entire wallet and this is one of the many reasons why so many people’s accounts are being compromised.
So the number of malicious programs that are being used by these types of criminals is on the increase and the tools are always being modified as well. The criminals have been able to launch attacks on banks and they have even been able to launch the same tools to hack the exchange and even wallets as well. This makes those who deal in this type of currency a very easy target. CoinDash’s initial offering was abruptly halted when a hacker changed the address of ETH. They then stole $7 million worth of funds. On top of this, Verge, the cryptocurrency suffered another hack. This happened when hackers took advantage of a glitch in this technology. This allowed them to mine more than one block at once and they could do this virtually as well. They were able to steal 35 million XVG tokens. This is worth around $1.7 million. The exact same tactic was used the month before.
So according to the Group IB report, one of the main reasons why the attacks are on the increase is because the users and the exchanges have disregarded the information regarding security. They have also seriously underestimated the capabilities of criminals as well and this is just not okay. Both users and even the exchanges have omitted a two-factor authentication. This means that they are choosing not to listen to the basic security rules regarding their platform and this makes the exchange even easier to hack. Out of the 720 accounts that were analysed, the data showed that only 20% of people had a password that was shorter than 8 characters.
This increase in fraudulent activity is not good at all and it also increases the amount of stolen funds as well., The industry is not able to protect itself against users like this and the problem is that it is all down to their own doing. There are going to be even more incidents happening if we are not careful but one thing that you can do to protect yourself is to make sure that your password has at least 14 unique symbols. Different exchanges should also have different passwords as well so this is something else that needs to be taken into consideration.