The widespread and popularity of the Bitcoin Bank Breaker App promises advanced features but also becomes a target for cyber scams and hackers who want to take advantage of these digital assets. While trading bitcoins and altcoins, one must stay aware of the commonly used hacking methods which can result in investment loss and hacking accounts. Hackers and cyber crimes are increasing with the rise of cryptocurrency and require caution and attention while investing and trading. The CEO of nVisium, Jack Mannino, who is a Virginia-based application security provider mentioned the rising cybercrimes in the crypto sector explaining the consequences of the attacks which can lead to the gravitation of digital assets as they increase in value and become more prevalent in the day to day lives.
However, tracking hackers and their activities become quite difficult as their footprints are eliminated easily on a digital platform. For example, when a crypto account is hacked, the user does not have access to legal recourse because crypto is decentralised, meaning, it does not operate under any government regulation or authority. These digital assets are completely independent which ultimately increase the chances of online scams.
Likewise, staying aware of digital scams and using experience trading methods are key to practising safe cryptocurrency trading and utilising the platform to its full potential.
Most Common Crypto Scams
Crypto giveaways are one of the most common scams nowadays. These are mostly done through crypto websites and social media in the form of digital posts. These posts consist of links that invite visitors to deposit assets to an unknown address by claiming the double value of the amount within a short time. These scams use celebrities’ identities or popular business icons to attract customers and promote the scam. Another social media app that is used to promote the hack is twitter. Several imposter accounts and fake identities promote the scam to be genuine through commenting and tweeting. This is another way of making the customer believe that the scam is genuine, however is completely a false attempt to steal investment.
The process of sending emails with hazardous links and making them seemingly from legitimate companies is termed phishing emails. This is done to insist the user take action by clicking an unauthorised link which can immediately infect the device with malware giving the hacker full access to the data stored in it. Several other phishing emails will redirect users to unauthorised websites asking them to reset passwords, reconfirm seed words, or check activities.
3. Trading bot
A trading bot scam is another very classic form of a crypto scam that involves websites claiming higher rates of returns and is operated as a Ponzi scheme. The Ponzi scheme follows a mechanism of stealing money and using it to pay other people who have already invested in the scam. Once the user has invested enough funds, these bots usually disappear with the money and the website is shut down.
For example, the Bitconnect platform claimed a 40% investment return with interest to people who have funded largely. After two years of functioning its native token even came under the top 10 cryptocurrencies after which it was closed down by regulators. The platform stole over $250 million after which the creators of Bitconnect disappeared.
Practising Safe Cryptocurrency Trading
1. Enabling two-step verification
One must never reuse an old password especially when it comes to cryptocurrency. Always make sure to limit hackers access by enabling double factor verification, using new and strong passwords, and password rotation wherever possible. Also, make sure to utilise an authorised password manager to make the process hassle-free and take the guesswork away.
2. Wallets, exchanges, apps, and brokerages
Always make sure to analyse trading platforms and their security features before investing to ensure maximum security. Along with this, types of wallets, exchange platforms, apps security and brokerages play a major role in protecting the crypto account from hacks and scams.
3. Do not use wallets hosted by providers
Digital coins are stored on digital wallets for trading and investment. One must never store assets in wallets hosted by the providers. Storing private keys on servers gives providers access to the data and can take over the money. Instead, use a hardware USB-based wallet that encrypts the private information and is a safer method to store digital assets.