Cryptocurrency itself is a very appealing
target for cybercriminals. In 2018, over $1 billion in cryptocurrencies was
stolen from exchanges and other platforms worldwide. Attacks and fraud, which
historically targeted regular payment systems, banks and fiat currencies, have
now been adapted to incorporate cryptocurrencies. As such, attacks on various
crypto assets like crypto exchanges or personal crypto wallets have now became
a routine – an increasing number of malware and phishing activities are
targeting crypto investors
and enterprises. The impact of cybercrime on
the cryptocurrency market has been controversial. Some have argued that
cybercrime has had a minimal impact on the cryptocurrency market, while others
have claimed that it has had a significant impact. The emergence of
cryptocurrency and cybercrime has raised concerns about the security of
cryptocurrencies and the accuracy of data provided about them by virtual asset
exchanges. Cyber threats to cryptocurrency are widespread and increasing in frequency.
"There are parts of the cryptocurrency
structure that are being exploited to launder criminal cash, particularly from
drug dealing. The growing menace of ransomware also utilises cryptocurrencies
as its payment mechanism. There’re several types of cyberattacks where
cybercriminals are taking advantage of cryptocurrencies. They include
ransomware, DDoS extortion, cryptojacking, and cryptocurrency exchange hacks.
While cryptocurrency might be the dawn of a
new age, it also has its counterpart that’s not so popular – cybercrime. It
comes in many forms, from ransomware to email scams. The truth is,
cybercriminals love laundering money and scheming businesses using
cryptocurrency scams. Due to their anonymous nature, cryptocurrencies play an
essential role in the underground economy. They are used for most
criminal-to-criminal (C2C) payments on Darknet forums and marketplaces. Around
$76 billion of illegal activity per year involves Bitcoin1, and by 2021
Cybersecurity Ventures predicts that more than 70 percent of all cryptocurrency
transactions will be for illegal activity. Also, many hackers demand payment
from victims for attacks, such as ransomware or DDoS extortion, in
cryptocurrencies (V2C – victim-to-criminal).
"Once limited to hackers, ransomware
groups and other denizens of the 'dark web,' cryptocurrency is becoming the
preferred payment method for all types of scams," the report said.
Cyberattacks using ransomware are increasing in frequency, and ransom payments
made to the hackers are swelling as well. Cryptocurrency and the exchanges
where digital currency can be traded anonymously have emerged as key tools for
the cyber extortionists. The vast sums being paid by corporations to regain
control of their computers would have been near-impossible to move in any other
legitimate currency market,”
experts say.
The emergence of cryptocurrency and cybercrime
Over the past decade, other fully anonymous
cryptocurrencies have also started to emerge. Unfortunately, these developments
are likely to lead to a surge in cybercrimes. Cybercriminals can
unknowingly use your computer to generate cryptocurrency. Cryptocurrencies also
create a veil of anonymity that creates many problems, particularly concerning
cybercrime. There is no technology that is free from cyber-attacks.
Cryptocurrency plays a vital role in cybercrimes. Most of the cyber-attacks are
conducted for financial benefits. One such attack is ransomware, where the
hacker extracts sensitive information from the person or an organization and
demand ransom in exchange for the stolen data. The hackers prefer to get their
ransoms in cryptocurrencies, as it has the advantage of anonymity and easy
transfer across the countries. Such crypto ransoms can be easily exchanged for
real money anytime they want. The cryptocurrency has given a new phase to the
dark web and its crimes.
With cryptocurrency, no evidence leads back
to the perpetrators. And with more and more businesses accepting cryptocurrency
across the business world, cybercrime has become quite a threat. Cryptocurrency
itself is a very appealing target for cybercriminals.
Cryptocurrency is a digital currency based on
blockchain technology, which is a secure digital ledger that records crypto
transactions. Investing in cryptocurrency might be risky if you don’t do your
homework and don’t follow best cybersecurity practices.
cryptocurrencies also create a veil of
anonymity that creates many problems, particularly concerning cybercrime. The rise in popularity
of cryptocurrencies like bitcoin has led to new cybersecurity issues, such as
the recent ransomware attack on the Colonial Pipeline. We are looking in some common
cryptocurrency scams and why businesses should ensure they have a cyber
insurance policy to stay protected from these and other cyber attacks.
Over the past decade, other fully anonymous
cryptocurrencies have also started to emerge. Unfortunately, these developments
are likely to lead to a surge in cybercrimes. Consumers, businesses and
governments are finding new ways to use cryptocurrency, but a recent string of
cyber attacks has highlighted security risks and shortcomings.
If you want to learn more about this Topic, feel free to leave your valuable comments.
We are happy to assist you. All the best for your future.
(All the material in this article are only the views of the author, and
couldn’t be taken as “Financial Advice”)
Key Words: Impact of
Cybercrime on Cryptocurrency
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