The Rise of Cryptocurrency Scams
With over 1,442 cryptocurrencies in circulation, and new alternative coins – “altcoins” – emerging every week, cybercriminals have developed several schemes to defraud those looking to profit from the growth in cryptocurrencies.
Point-and-Click Services
In 2017, the rise of point-and-click services like Crypto Jacker allowed nontechnical operators to create links with embedded mining scripts. These links were then disseminated to unsuspecting victims via social media. Scammers used deceptive tags like “News” and “Fitness” to entice readers, often cloning popular websites to lend credibility to their schemes.
Phony Initial Coin Offerings (ICOs)
Criminals use underground and mainstream freelance sites to recruit individuals with skills to create fake ICOs designed to scam cryptocurrency investors. These groups often try to artificially inflate the value of questionable currencies through social media platforms before quickly cashing out.
Impersonation of Currency Exchanges
Attackers are increasingly impersonating currency exchanges with elaborate, phony websites that capture user credentials, allowing them to steal from user accounts. Phishing and credential stuffing are common tactics used to obtain sensitive information and gain unauthorized access to accounts.
Botnets for Mining Cryptocurrency
Botnets were first used to mine Bitcoin in 2014, but the complexity of the process made it financially unviable. However, the rise of newer cryptocurrencies like Monero has made botnets a viable option for cybercriminals. Botnets are now available to rent for as little as $40, providing criminals with a cost-effective way to mine cryptocurrency.
The Future of Cryptocurrency Scams
As the popularity of cryptocurrencies continues to grow, cybercriminals are constantly evolving their tactics to exploit this trend. It is essential for individuals and businesses involved in buying and trading cryptocurrencies to remain vigilant and exercise caution throughout the transaction cycle. The unregulated and largely unsecure nature of the digital currency market makes it a prime target for criminals, highlighting the importance of staying informed and implementing robust security measures.
Ultimately, the world of cryptocurrencies resembles the “Wild West,” where opportunities for profit are abundant but so are the risks of falling victim to scams. By staying informed and adopting a proactive approach to cybersecurity, individuals can navigate this landscape with greater confidence and security.