In 2020, fraud was the top cryptocurrency crime, followed by theft and ransomware. Decentralized Finance (DeFi) -related hacks, which are transactions on platforms that allow outside-bank credit, accounted for half of all thefts, or $ 129 million. According to the Statista report (as of February 2021), there was an increase in cryptocurrency hacks between 2019 and 2020, although overall fraud had decreased significantly compared to 2019. The average theft value in 2019 was around 160% higher than in 2020, suggesting that the crypto ecosystem is mature and better able to detect threats.
On this day, the cryptocurrency community continues to grow with over 100 million users. At least 14 million users are expected to be new entrants this year, drawn to the excitement of the recent bull cycle and ready to invest in Bitcoin or other cryptocurrencies for their future.
With many fraud incidents in the crypto world, it is still likely that first time crypto users will be easy targets. This article hopes these security tips will help you prevent such cyberattacks.
1. Beware of phishing scams.
Phishing is a fraudulent attempt to obtain confidential information from a user by pretending to be a reliable source. Hackers use a standard scam method to create a fake, identical replica of a bitcoin exchange or online wallet website. There are five common types of phishing attacks:
- Email phishing – Email is used in most phishing attacks. The thief creates a fake domain that looks like a legitimate company and sends hundreds of generic requests.
- Whaling – Whaling fraud with false tax returns is becoming more common. Criminals value tax forms because they contain a wealth of information such as names, addresses, social security numbers, and bank account information.
- Spearfishing – It’s a different type of phishing with email. Spear phishing is the term used to describe malicious emails sent by criminals to a specific person who already have information about the victim, such as: B. Name, place of work, job title, email address and detailed information on the job description.
- Smishing and Vishing – Smishing means that thieves send text messages with similar content to email phishing, and vishing involves a phone call. The criminal would request payment card information to authenticate the victim’s identification or to transfer money to a “secure” account, which is the criminal’s account.
- Angler phishing – Angler phishing is a type of phishing attack that takes place on social media platforms. Angler phishing attacks are initiated through fake corporate social media profiles, as opposed to traditional phishing, which uses emails that mimic real organizations.
2. Beware of bitcoin gambling sites.
The privacy that Bitcoin gambling offers appeals to many individuals. This anonymity can sometimes be a disadvantage. Many bitcoin gaming sites do not disclose the name of their owner. This makes it difficult to determine whether the platform has the necessary permits.
3. Use a complex password
Surely you have reminders and suggestions too not with your date of birth or other life events that you can easily remember. This type of password also makes it easier for a professional hacker to gain access to your account.
It would be helpful if you choose a very secure password when creating a wallet or a Bitcoin exchange account. It can be a mixture of numbers, uppercase and lowercase letters, symbols, and other characters. You can also use internet password generators to generate a secure password.
4. Activate two-factor authentication (2FA)
Two-factor authentication (2FA), often also known as two-step verification or two-factor authentication, is a security method in which users authenticate their identity with two different authentication factors.
This is a great concept for securing the cryptocurrency that makes it difficult for hackers to access your wallet or Exchange account as simply providing the password is not enough. The majority require two-factor authentication of exchanges and wallets. A random PIN may be required and it will be provided to you via email or SMS.
5. Avoid public WiFi as much as possible
Your browser can be redirected to any page via Wi-Fi. This can be a clone of your exchange or your Bitcoin wallet. They also collect data sent over the network to see if it includes the password you entered. If you’re using public WiFi to access your wallet, make sure you’re using a virtual private network (VPN).
A VPN turns a public Internet connection into a private network that gives you online privacy and anonymity.