As you know the cryptocurrency industry is booming. However, the industry faces certain security challenges and just recently, Bleeping Computer detected a doubtful incident where hackers attempted to swindle over 2.3 million wallets and hack cryptocurrency.
The attackers are said to have used malware to gain access to users email addresses. Surprisingly, Kaspersky Lab had predicted the attack that came to happen later.
Users are required to send coins to addresses that are not easy to remember. For that reason, a user needs to copy the address and paste it into the platform they are using when sending coins. On the other side, attackers are creating malicious programs that can be able to gain access to user’s information.
The malicious program created by attackers is called Cryptocurrency Clipboard.
The program works by keeping track of the users Windows clipboard to detect cryptocurrency addresses. After detecting a cryptocurrency address, the program replaces it with another address so that attackers can take over the control. When using the internet, users need to understand that there is a third eye wanting to monitor everything happening on the web.
It is therefore required that when copy-pasting a cryptocurrency, a user should double-check to ensure the address is not swapped with an address which can be controlled by attackers. That said, in this article, you will learn the tools used by hackers to hack and steal cryptocurrency and how to protect wallets.
Tools Used by Hackers for Cryptocurrency Hack
Technology has made things simple and easy. However, only a few understand how to use the internet safely.
Well, it is good to be on the same page with the change in technology, but not many people understand the dark side of technology, especially when it comes to the cryptocurrency industry. This puts a user’s savings at risk, especially those who haven’t known the tools hackers use to steal Bitcoins. Thankfully, if you are reading this article, you will know the tricks and tools used as well as ways you can protect your wallets.
And without much ado, here are the tools.
“Phishing” Is One of the Methods of Cryptocurrency Hack
Email phishing is a method that has been used by internet hackers for many years, but unfortunately, it is still one of the biggest methods hackers use to steal cryptocurrency.
Hackers create a phishing page which looks so tempting that you just find yourself clicking on it. Once you click on it, you expose your private information which hackers can use to gain access to your sensitive online accounts.
Additionally, hackers can swap your address with one they have control over in the website.
Pro Tip: Avoid clicking links that look tempting and appealing. If you notice a cryptocurrency website that has HTTP instead of HTTPS in the address bar and it looks weird, just don’t click on it.
Keyloggers are software which are installed secretly into your computer and it sends back data to the hacker. Keylogger like Wolfeye is used to monitor unauthorized PC access, staff monitoring and to spy on the internet behavior of children. It can record the keystrokes and send it back to the supervisor. But hackers are using evolved versions of keyloggers to steal your private key. A keylogger attack can be catastrophic for the User. In order to avoid it you can use antivirus software.
The bad news is there is no decrease in the activity of crypto hacking. As per JAN 2019, there are more than 11000 dark web platforms selling more than 34000 offers. Here anyone can get malicious software for an average price of $240.
“Public Wi-Fi” Another Method of Cryptocurrency Hack
Wi-Fi hacking is one of the leading Bitcoin-stealing tools. Most Wi-Fi routers use the Wi-Fi Protected Access Protocol. However, hackers have gotten smarter. They have created programs that enable them to monitor information sent through the Wi-Fi.
By executing a simple command on the web, hackers can control everything that takes place in your Wi-Fi, and you know what that means to your Bitcoin wallets.
How to Keep Your Wallets Protected: Ensure your router is updated with the latest security patches regularly. Also, avoid using public Wi-Fi when sending crypto coins.
Sometimes you will get a warning about security issues on your wallet from bots on slack. But in the real sense it’s not security warning but a method hackers are using to steal your sensitive information including your passwords. Once you click on the security alert, the bot will then direct you to a URL. Then it will request you to enter your private key to secure your wallet.
Keep your wallets safe. Do not entertain bots on slack. They are meant to steal your cryptocurrency. Secure your slack channels with Metacert if possible.
Unverified Social Accounts
Social media has made the world to look like a small playground.
We use it to interact, network, communicate and share our views. However, it can be a source of problems to our savings.
There are plenty of fake social media accounts currently that are creating by users who intend to steal on the internet.
Tip: Always follow genuine or verified social media accounts and click on social media links that look fake. In fact, to keep your wallets protected, ensure to click on social links for websites you trust.
Hackers have also created browser extensions that claim to make your experience on trading platforms a superb one. But in the real sense, they want to gain access to your sensitive information. “Some browser extensions can detect everything you do on your browser which could mean a disaster if they steal your passwords” warns Erick Mathews, a software developer.
Be warned: NEVER install crypto extensions on your browser. You better work with your ugly user experience to stay safe than to download an extension that will leave with regrets forever. In fact, you should access trading sites in private mode.
Authentication by SMS
Many users choose to use mobile authentication because they are used to doing it, and the smartphone is always on hand. Positive Technologies, a company that specializes in cybersecurity, has demonstrated how easy it is to intercept an SMS with a password confirmation, transmitted practically worldwide by the Signaling System 7 (SS7) protocol.
Specialists were able to hijack the text messages using their own research tool, which exploits weaknesses in the cellular network to intercept text messages in transit. A demonstration was carried out using the example of Coinbase accounts, which shocked the users of the exchange. At a glance, this looks like a Coinbase vulnerability. But actually, the real weakness is in the cellular system itself, Positive Technologies stated. This proved that any system can be accessed directly via SMS, even if 2FA is used.
If order to be protected you should turn off call forwarding to make an attacker’s access to your data impossible. Also, give up 2FA via SMS when the password is sent in the text, and use a two-factor identification software solution.
Add-Ones for Cryptotrading
For protecting yourself against such issues, you should:
- Use a separate browser for operations with cryptocurrencies.
- Select an incognito mode.
- Do not download any crypto add-ons.
- Get a separate PC or smartphone just for crypto trading.
- Download an antivirus and install network protection.
Final Thoughts about Cryptocurrency Hack
Cryptocurrencies are important as other things you consider important in your life. For that reason, you must ensure to keep your wallets protected from cryptocurrency hack. The first step to protecting your wallets is to know the tools hackers use to steal cryptocurrency.
In this article, we have mentioned only a few but there are plenty of tools and tricks you need to find out to know them as well as how to protect your wallets.
We would like to know more tips and tricks you know about securing cryptocurrency wallets in the comment section below.