Cyber Security Issues Associated with Cryptos - Business Alert

Cryptocurrency has taken an important place in the business sector. However, cyber security isn’t its perfect side unless qualified cyber security experts like MBS Tech are brought in. You can imagine that only the slightest part of crypto users meet the last condition. This aspect is one of the most urgent reasons for the current fake crypto apps crisis and other skyrocketing cryptocurrency scams.

Cryptocurrency 101  

We’re sure many of you have heard of Bitcoin. That is one of the vast range of cryptocurrencies available on the market. Let’s focus on the basic information an average user should know about cryptos.

What Is Cryptocurrency?

Cryptocurrency is a system of digital currencies secured by cryptography and stored in digital wallets - website- or device-based. The cryptosystem doesn’t require a central authority. 

The most critical benefit of blockchain-based cryptos is peer-to-peer financial communication between contract parties. No intermediary links or third-party organizations like banks, courts, etc., are necessary for the decentralized cryptocurrency. The speed and volume of crypto growth are tremendous. 

History of Crypto

The foundations of today’s cryptocurrencies were built not earlier than the late 90s. With each step concluding in proto cryptocurrency, the first original crypto appeared in 2009. It was Bitcoin, whose standards and potential haven’t been beaten by any other emerging cryptocurrency so far. There is a separate term for cryptocurrencies other than Bitcoin - alternative cryptocurrencies or altcoins.   

Current Cryptocurrencies: Examples

Bitcoin is a well-known original cryptocurrency and a constant leader among thousands of competitors. There are also other more or less functional altcoins that try to stabilize purchasing power and are called stablecoins. Some types of promising stablecoins include: 

• Ethereum (ETH), 
• Tether (USDT), 
• USD Coin (USDC), 
• Binance Coin (BNB), 
• Binance USD (BUSD), 
• XRP, 
• Cardano (ADA), 
• Solana (SOL), 
• Dogecoin (DOGE), 
• Polkadot (DOT).

The cryptocurrency field is comparatively new, but it covers too many crucial areas and consolidates a great number of assets; its age can’t be a reasonable excuse for lack of cyber security. The urge to make it right is also because of the evident popularity and long distance prospects of using crypto.

Cyber Security Issues Associated with Cryptos

There is an evident tendency in the digital world. If anything is getting great popularity among users for simplifying their life, bringing comfort to their business, and especially growing their assets, there will be malicious actors to take advantage of any flaw or slightest weakness. 

Cybercriminals use cryptocurrency in all ways possible - as real users to get ransoms and as hunters for victims holding cryptocurrency wallets or, especially, those eager to start from scratch or open a new account, explore. Hackers have a wide range of tricky schemes and tools for all strategies.

Ransom Payouts via Bitcoin

If you follow our blog, you may remember the news about colossal ransomware attacks with several million dollars each. In most cases, the payouts were sent (or ordered to send) through the Bitcoin cryptosystem. By the way, one of the most widespread cyber scam signs is the request to pay in cryptocurrency.

Most payouts to cyber criminals in cryptocurrency can’t be returned. 

Investment Crypto Scams

A special cryptocurrency scam targets investors. There are two common scenarios. According to the first, a victim finds a credible-looking website or is somehow sent to it by a “trusted” tip-off. Everything looks alright, and they invest. The website or application shows growth. However, when the victim reaches the point when they want to get their assets, the platform either requests more crypto for the “operation” or blocks everything. 

The second scenario’s story is somewhat similar in the main body, but the beginning is different. The main tool in a cybercriminal's hands is spoofing. A victim is sure that they use a legitimate website or app, enter information, and buy crypto. In reality, they use a cloned platform, and all assets go to malicious actors. One more direction of this scenario is a giveaway by famous bankers, investors, etc., who appear to be scammers when it comes to the test.

Protect Your Business with Our Expert Help

Many serious businesses use cryptocurrencies, and the trend will only grow. As a prominent cyber security company, we ask you to prioritize cyber security and mind cyber insurance opportunities. Reach out to MBS Techservices experts to develop a tailor-made plan for your business. Keep cyber safe!