What Is Crypto Stealing?
Everyone knows cryptocurrency has changed how money is exchanged since it provides a decentralized and safe way to send and receive funds. However, crypto theft has also increased in tandem with the use of digital currencies. According to a recent report from TRM, 1.3 billion dollars worth of cryptocurrency was stolen between January 1, 2024, and June 24, 2024.
In this article, we will discuss cryptocurrency stealing, the methods used by hackers, and the steps you may take to protect yourself.
What Is Crypto Stealing?
Crypto stealing is the illegal act of acquiring cryptocurrencies. Unlike traditional money, cryptocurrencies are digital currencies that use encryption to ensure their security. They are traded on exchanges and kept in digital wallets. Because blockchain transactions are anonymous, it is generally difficult to retrieve stolen cryptocurrencies because of their decentralized nature.
How do Hackers Steal Crypto?
Hackers steal cryptocurrencies in various ways. Let's examine some of them.
Hacking Exchanges and Wallets
Hackers look for security holes in exchanges' or wallets' code and use them to access users' funds. They also use lists of leaked usernames and passwords to try to access users' accounts on exchanges or wallets. They listen in on conversations between users and exchanges to steal login information or change transactions.
Phishing
In order to steal users' login information, hackers often construct convincing imitations of real exchange sites or deliver emails that seem to have come from trusted sources.
Additionally, they impersonate trustworthy personnel, such as an exchange customer service representative, in order to trick people into divulging sensitive information.
Malware
Hackers can steal private keys and passwords using software that records keystrokes.
Additionally, they employ malware that tracks the user's clipboard activity and inserts the hacker's address whenever a Bitcoin address is copied and pasted.
SIM Swapping
If a victim uses two-factor authentication via SMS, hackers can bypass it by tricking or bribing telecom workers into switching the victim's phone number to a SIM card that is under their control.
Additionally, they can execute a SIM switch by gaining access to a telecom employee's credentials via phishing.
51% Attacks
It is possible to falsify transactions, double-spend money, and undermine the integrity of a Proof-of-Work blockchain if an attacker controls more than half of the network's mining power.
Exploiting Human Error
Brute force attacks are employed to guess weak or widely used passwords.
They take advantage of user accounts, exchanges, or wallets that have security settings that aren't set up correctly.
One more common method is to intercept data being transmitted over unsecured public Wi-Fi networks in order to obtain private keys or login credentials.
Advanced Persistent Threats (APTs)
Hackers can breach a company's network and stay hidden for a long time, stealing money and information.
While we're on the subject of tricks, let's take a look at some high-profile crypto thefts:
· Graham Ivan Clark, along with Nima Fazeli and Mason Sheppard, executed an infamous crypto heist in 2020. With the use of social engineering techniques, they gained access to prominent Twitter accounts and spread a Bitcoin scam, affecting accounts belonging to Elon Musk, Bill Gates, Jeff Bezos, and Barack Obama, among others. More than $100,000 worth of Bitcoin was stolen.
· In 2018, an anonymous hacker took advantage of Coincheck's weak security measures and stole NEM coins from the exchange's hot wallet. The amount of $530 million in NEM currencies was stolen.
· A flaw in Bitfinex's multi-sig wallet mechanism was exploited by unidentified hackers in 2016. At the time of the theft, 120,000 BTC were stolen. They were valued at around $72 million at that time.
· The largest crypto theft to this day, however, was the 2014 Mt. Gox theft. Mt. Gox, once the biggest Bitcoin exchange, went bankrupt after being breached by unknown hackers who took advantage of security holes and may have even been involved from inside the company. The 850,000 bitcoins that the hackers stole were worth $450 million back then and billions now.
How to Avoid Crypto Theft?
There are a lot of ways that hackers can steal cryptocurrency, so it's important to have strong security measures in place to keep your digital assets safe. In order to protect yourself, follow these steps:
Two-Factor Authentication (2FA) and Strong Passwords:
For added protection, set up two-factor authentication (2FA) and use strong, unique passwords for all of your accounts.
Keep Your Devices Safe:
Protect your computer from malware by installing and updating anti-malware software and keeping your OS and apps up to date with the most recent security patches.
Stay Alert Against Phishing:
When asked for sensitive information, always double-check the source of the request, avoid clicking on links in suspicious emails, and always verify URLs before entering credentials.
Use Hardware Wallets:
Hardware wallets are offline storage solutions that are less likely to be hacked.
Educate Yourself
Keep yourself updated on the newest cryptocurrency security threats and best practices. Take part in security awareness courses and always be on the lookout for instances of social engineering.
In this digital age, crypto stealing is a big problem that is getting worse. However, you can reduce your chances of falling prey to crypto stealing by maintaining a level of information and awareness.
Conclusion:
In today's digital world, crypto stealing poses a serious and increasingly pressing concern. From taking advantage of security holes in software to using deceptive social engineering techniques, hackers employ a wide array of methods to steal cryptocurrency. Strong passwords, two-factor authentication, device security, and hardware wallets are some of the most important security measures you can take to safeguard your digital assets. The likelihood of falling prey to crypto theft can be reduced by m
