Cryptocurrency users frequently fall prey to online hacks, in a blink of an eye all your investments can quickly leave your digital wallet.
It is paramount to bolster the security of your funds by heeding the simple guidelines that are outlined in this article. But before pointing out these solutions, it’s crucial to understand the type of threat that exists today.
Prominent Hacking Groups Roaming The Crptocurrency Industry
Several criminal entities are in play throughout the crypto space but the one that has made alot of sound is “The Lazarus Group”.
This entity also known as Guardians of Peace or Whois Team is a cybercrime group run by the government of North Korea
The Lazarus Group’s first major hacking incident took place 2009 and sparked the beginning of “Operation Troy”. This attack utilized malware to launch a large-scale, attack against US and South Korean websites.
Soon the group set its sights onto the cryptocurency scene, with their earliest attack on a South Korean crypto exchange Yapizon in April 2017, resulting in the theft of 3,831 Bitcoin, worth over $4.5 million at the time.
June of 2023 saw three headline-grabbing incidents involving cryptocurrency companies: a $100 million hack of Atomic Wallet on June 2, as well as two June 22 attacks in which cybercriminals stole $60 million from Alphapo and $37 million from CoinsPaid.
Representatives of all four companies intimated at the time that North Korean hackers were behind the incidents
FBI Joins Investigations Into The Groups Activities
The Lazarus Group’s activities in the cryptocurrency space have raised concerns to its intentions, with most pointing to the generation of funds for the North Korean regime inorder to evade international sanctions.
This month alone, the FBI have already issued a release to warn the public regarding the theft of approximately $41 million from Stake.com ( an online casino). Investigations have linked this heist to the Lazarus Group of hackers , it allegedly carried out through a spear-phishing campaign that targeted some of its employees.
The Federal Bureau of Investigation estimates losses from all of these hacks carried out by the group in the year 2023 to add up to over $200 million.
There can be little doubt that this group is on a rampage in the crypto space and anyone or entity could fall victim to the actions of this group of cyber criminals
Human Error Is Exploited Most Often During Hacking
Contrary to common belief, most hacks actually occur through phishing and social engineering. Often, attackers entice their victims into a trap by appealing to their natural curiosity or greed.
Poseing as customer support representatives or other trusted figures in order to trick victims into giving up their personal information.
It is not uncommon for a hacker to impersonate the support department of a company, and call employees and ask them to verify their login credentials in order to update the system.
Phishing attacks involve sending deceptive emails or messages to trick recipients into taking malicious actions. An attacker might impersonating organizations, such as a bank, and send an email to a user, asking them to click on a link to verify their account. The link takes them to a fraudulent website where their login credentials are stolen.
Baiting( click bait) attacks offer something enticing to the victim, such as free software or a job opportunity. Enticing a victim to click a link unknowingly downloading malware into the victims computer that shares all the victim`s personal information with the hackers
What Crypto Investors Can Do To Avoid Hacks And Exploits
Luckily, despite the increasing sophistication and capabilities of hackers today, there are three simple steps you can take to keep your funds safe. Namely
Exercise Caution
Use extreme caution when clicking on links in emails and social media. Many scammers lure their victims with enticing deals or giveaways. Reduce the risk of losing your funds by using experimental accounts or wallets.
Two-Factor Authentication
Enable Two-Factor Authentication, or 2FA, on all your crypto exchange and wallet accounts. This adds an extra security step by requiring you to provide a one-time code generated by an app like Google Authenticator or Authy. Even if an attacker manages to steal your password, they won’t be able to access your accounts.
Hardware Wallets
Use hardware wallets for long-term storage of your crypto assets. Hardwae wallets are not directly connected to the internet, making them highly secure against online threats like phishing attacks or malware. They provide an extra layer of protection by keeping your private keys offline and away from potential hackers.
