What is cryptocurrency?
The AMF, ACPR, and DGCCRF recently warned of the rise in cryptocurrency scams. 600% of cryptocurrency losses between 2020 and 2021 were due to theft and fraud.
A cryptocurrency is a virtual currency that operates independently of banks and governments. It takes the form of cryptographic (encrypted) codes. These codes change as transactions are made with the currency in question. This is called the "blockchain." New cryptocurrencies are invented every day. In 2021, it is estimated that there were more than 10,000 cryptocurrencies in existence.
Even though some users insist that cryptocurrency scams do not exist, new malware are emerging, such as Elcheron malware. It mainly targets Telegram users. Its primary objective is to hack wallets and account credentials. (Source: Lebigdata)
Unfortunately, it has been proven that the use of cryptocurrencies can pose serious problems for investors. Since the creation of cryptocurrencies, illegal activities have increased significantly.
Main types of crypto-related attacks:
- Cryptocurrency investment platforms and identity theft: cybercriminals create websites that look like real cryptocurrency platforms. They also use social engineering to convince individuals to send them their personal information... It's a scam! Ideally, use well-known exchanges such as Coinbase or Binance.
- Online payments with cryptocurrencies. With cryptocurrencies, you never have the option to get your money back if you pay online via a fraudulent website.
- Sports betting with cryptocurrencies. If you deposit money and see your return appear in your virtual account... but you will never be able to cash out your winnings.
- Bitcoin extortion attempts. A scammer contacts you claiming to have control over your computer, camera, etc., and pressures you to pay in bitcoin if you want to be left alone.
Cryptocurrency-related cyberattacks cyberattacks related to cryptocurrencies are mainly carried out through interfaces and applications called "exchanges." These attacks involve stealing users' private keys and using them to transfer cryptocurrency funds to another account. (Source: Tacotax)
Precautions to take:
- Avoid suspicious links. It is better to type in the names of the websites you want to visit yourself.
- Promises of quick and substantial gains are a sign of a scam.
- Ensure that your passwords related to cryptocurrencies are complex, changed regularly, and not used on other sites.
- Store your cryptocurrencies in individual wallets such as Metamask or the wallet for the cryptocurrency in question. This will prevent losses in the event of compromise or hacking of an exchange.
- Always update your software
- Never share your personal information
