The past year has witnessed a significant rise in crypto thefts, highlighting the pressing need for enhanced security measures and awareness among crypto holders. With the increasing value and popularity of cryptocurrencies, incidents of theft have become a prevalent concern for individuals and businesses alike. The article covers methods for avoiding becoming a target for hackers and scammers and provides tips for safeguarding your cryptocurrency.
Why Are People Losing Control of Their Cryptocurrencies
There are three common ways to lose crypto:
1. Forgot your personal data
According to Cypherock’s study, 4% of Bitcoins are lost each year because of hardware wallet loss, lost private keys, and transfers to inaccessible addresses.
2. Become hacked
According to a report by Chainalysis, cybercriminals were able to steal a whopping $3.8 billion in cryptocurrency in 2022.
3. Send money to scammers
Unfortunately, many users still make the mistake of sending crypto to scammers.
Lack of knowledge about crypto hygiene is one of the most common ways of losing control over cryptocurrency. Crypto hygiene includes knowing how to keep your data safe, doing due diligence on your counterparty, staying on top of security best practices, and avoiding scams.
Understanding how to secure your data correctly, stay on top of security best practices, and avoid scams can go a long way toward helping you maintain control of your cryptocurrencies. Additionally, it’s essential to stay up-to-date on the latest news and developments in the cryptocurrency space and do your due diligence before investing so that you can assess any potential risks associated with a particular investment.
If you already become a victim of crypto theft, you can also check our article “Rescuing stolen cryptocurrencies” to become more familiar with the process and inspired by user cases.
Why are cryptocurrencies being targeted by hackers?
The allure of cryptocurrencies for hackers is multifaceted. The abundance of user funds, the rising popularity and market capitalization, the limited regulation, and the global accessibility of cryptocurrencies contribute to their appeal as prime targets for cybercriminals. To learn more, check our explosive article “Why Do Hackers Attack Crypto?” As the crypto industry evolves, platform developers, users, and regulators must work collaboratively to enhance security measures, establish robust regulations, and educate users on best practices to mitigate the risks associated with cryptocurrency-related cyber threats. From this perspective, AMLBot strives to be a safety ambassador for the crypto world and enhance users’ awareness, making it a more secure environment.
What Types of Hacks Exist?
Before, we already shared the information about “Most Common Ways You Can Be Scammed” in all detail. In this article, let’s discuss this shortly so that you can become more aware and better protected against crypto hacks.
Hackers Attacks
Weak Crypto Wallets Passwords: Hackers can exploit this weakness by guessing the password and gaining unauthorized access to the account. Using strong and complex passwords and changing them frequently is crucial to minimize the risk of unauthorized access to your crypto wallet.
Phishing Attacks: Cybercriminals create fake websites, emails, or messages that resemble legitimate entities, leading users to provide their sensitive information unknowingly. To prevent falling victim to phishing attacks, it is essential to exercise caution, verify the authenticity of sources, and never share sensitive information through unsecured channels.
Malware Attacks: keyloggers or remote access trojans (RATs) can infect a user’s device and compromise their cryptocurrency security. These malware programs silently collect private keys or login information and transmit them to hackers. To protect against malware attacks, users should maintain up-to-date antivirus software and be cautious when downloading files or clicking suspicious links.
Exchange Hacks: crypto exchanges’ security is usually high, but these organizations can also be targets for cybercriminals seeking to gain unauthorized access to user accounts and steal funds. Hackers exploit vulnerabilities in the exchange’s security infrastructure or employ social engineering techniques to deceive users and gain access to their accounts. It is advisable to use reputable and secure exchanges with robust security measures to minimize the risk of exchange hacks.
SIM Swapping: hackers convincing mobile network operators to transfer a victim’s phone number to their own device. By gaining control over the victim’s phone number, they can bypass two-factor authentication and gain unauthorized access to cryptocurrency accounts. Users should take steps to protect their mobile phone accounts, such as using strong authentication methods and contacting their service provider to implement additional security measures.
Fake Approvals: To use dapps like Uniswap or OpenSea, you have to give them permission to access your tokens and NFTs. This is called token approval. If you don’t revoke these approvals, the dapp can continue using your tokens without restriction. Scammers often try to deceive you into granting them approval to access your funds. You can organize your approvals by date and cancel any recent ones that may be problematic. This will prevent additional harm, but it is impossible to recover funds that have already been stolen.
Scams
As well are popular tricks that crypto scammers can try to trick you out of money. In this case, you will send money by your own willingness. Being aware of all possible machinations is crucial to protect yourself from huge losses.
ICO Scams: Initial Coin Offerings (ICOs) are crowdfunding campaigns for new cryptocurrencies. Scammers take advantage of the hype surrounding ICOs by creating fake projects, collecting funds from investors, and disappearing without delivering any product or service. Investors should exercise caution, conduct thorough due diligence, and verify the legitimacy of ICO projects before investing.
Pump and Dump Schemes: In pump and dump schemes, a group of individuals artificially inflate the price of a specific cryptocurrency through coordinated buying, creating hype around it. Once the price peaks, they sell their holdings, causing the price to plummet. Unsuspecting investors who buy during the hype are left with devalued holdings. It is crucial to conduct thorough research and exercise caution before investing in volatile markets.
Romance Scam: hackers pose as potential romantic partners to gain victims’ trust. They establish emotional connections and convince victims to send crypto or disclose their private keys. To protect against romance scams, it is important to be cautious when interacting with strangers online and avoid sharing sensitive information or sending funds to individuals you have not met in person.
Ponzi Schemes: Ponzi schemes lure investors with the promise of high returns on their cryptocurrency investments. These fraudulent schemes rely on using funds from new investors to pay off older investors. Eventually, the scheme collapses, leaving participants with significant financial losses. It is important to thoroughly research investment opportunities, exercise skepticism, and be cautious of suspiciously high returns.
We receive many customer inquiries in AMLBot about how to recover stolen crypto. We assist with investigations to help crypto holders recover their money. However, we want to remind you that being informed is essential for protecting yourself.
The Way To Crypto Security
If you have fallen victim to crypto theft, recovering your money through a complex process is possible. While it may appear complicated, safeguarding your assets is achievable. However, taking preventive measures beforehand is advisable as it will be less costly. Thus, learning how to keep your assets secure is crucial. Now, let’s look at some tips for preventing crypto crime from happening in the first place.
1. Use Strong and Complex Passwords for online wallets and profiles: Create a unique pass, at least eight characters long, and include a combination of uppercase and lowercase letters, numbers, and symbols. Avoid using easily guessable passwords like “1234567890” or “password.” Change them regularly, especially if you detect suspicious activity on your accounts, and avoid using the same for different accounts.
2. Keep Your Software Up-to-Date: Ensure that antivirus, operating system, security, and application software are up-to-date. Enable all necessary security features on your devices to enhance protection against attacks.
3. Enable Two-Factor Authentication (2FA): add an extra layer of security. With 2FA, you’ll need to provide a code sent to your phone via text message in addition to your username and password. This makes it more difficult for hackers to access your accounts.
4. Be Cautious of Phishing Attacks: Be vigilant regarding emails, messages, or websites asking for your private keys or login credentials. Avoid clicking on suspicious links or providing sensitive information unless you are certain about the authenticity of the source.
5. Regularly Check Your Accounts: Before making any transactions, thoroughly review your accounts to ensure no unauthorized or illiquid transactions. This will help you feel confident that your account is secure and avoid potential issues with online platforms.
The AMLBot enables you to verify wallets and transactions and uncover the source of funds. This assists in identifying the legitimacy of assets and safeguarding against fraudsters and pilfered coins. It helps you to prevent becoming a victim of the scammer. An overall risk score based on all the connections is provided to aid the user in determining what to do with the assets. By using such services, you can minimize Crypto theft risks.
6. Protect Yourself from Fake Approvals: be cautious and verify the authenticity of any approval messages you receive. Double-check the sender’s email address or message source and compare it to official communication channels. Avoid clicking on suspicious links or providing sensitive information if you have doubts about the legitimacy of the approval request. When in doubt, contact the platform or organization directly to confirm the validity of the approval before taking any action. To conveniently manage your approvals, visit our website’s “Revoke Approvals” section. This feature allows you to see a list of all the approvals you have granted and to revoke them if necessary.
7. Check the Project Well: Conduct thorough research when considering investing in a new cryptocurrency. Look for documents like the Whitepaper and Tokenomics to understand the project’s goals and structure. Verify community support, review the project’s history, and check if it is registered on popular exchanges. This diligence will help you identify legitimate projects and avoid potential scams. Potential fake investment schemes often offer guaranteed high returns, use misleading marketing tactics, and lack transparency or regulatory compliance. Examples include Ponzi schemes, ICO scams, and pump and dump schemes.
In conclusion
Scams are prevalent in the crypto space, and it is essential to be alert and cautious. Preventive measures like creating strong passwords, enabling two-factor authentication, and regularly checking accounts will help you stay safe. Additionally, conducting detailed research before investing in new projects is essential for avoiding scams. Fortunately, AMLBot provides a comprehensive verification solution to assist users in verifying wallets and transactions. With this helpful tool, crypto holders can minimize their risk of becoming theft victims. All these preventive measures will help you protect your assets and keep them safe from hackers.
For people who become a victim of crypto scams or hackers, AMLBot can help with investigations to recover lost funds. For more information, don’t hesitate to contact us for further assistance. We are always here to help you protect your assets and ensure a secure crypto experience.
