Despite the downward trend of the crypto market, cybercrime has not decreased. In fact, the problem is predicted to worsen, with cryptocurrency wallets making recovery measures more difficult. Bitcoin, Ethereum, Litecoin, and Ripple are being used commonly in criminal activities, which has extended beyond ransomware groups and hackers. The need for strong security measures is evident with the various types of cyberattacks on crypto that have been developed.
Money laundering is a major factor in financial crimes, as the anonymity of crypto networks is attractive to malicious actors. Peel Chain, Chain Hopping, and Over Counter trades are used to launder money, while cryptojacking is when hackers use a device to mine cryptocurrencies without the owner’s knowledge. JavaScript code is inserted onto websites or online ads, which automatically executes when loaded in the browser and runs in the background.
Cryptocurrency scams are also commonplace, taking advantage of investors’ trust and enthusiasm. These scams may involve fake ICOs, Ponzi schemes, phishing attacks, and fraudulent investment platforms. To avoid these risks, investors should conduct research, exercise caution, and use updated security measures.
Cryptocurrency transactions are conducted directly between two parties, eliminating the need for intermediaries. This simplifies the process, reduces complexity, and promotes more privacy. There is also greater control and efficiency in conducting private exchanges, making crypto transactions a significant benefit.
