The Common Tactics Used to Hack a Cryptocurrency Exchange

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A lot of young cryptocurrency traders and low class investors are starting to lose faith in this booming industry because of decrese on prices of digital currencies.

Those who purchased Bitcoin for $19,000 believe they can sell their funds at the same rate, not to mention any chance of profit. That’s because brokers still cannot break the back of traders and move down to the critical level of $5,000- $5900 mark

Despite that, the cryptocurrency business continues to grow in the large scale. This applies to specialized trading platforms. While the weak hand investors are helpless, now big players are entering the game, including Goldman Sachs and Intercontinental Exchange , the parent company of the New York Stock Exchange.

Goldman Sachs is planning to allow its customers to trade Bitcoin which is in the right direction, whereas ICE will offer swap contracts to banks so that clients can get their cryptocurrency the day following the purchase transaction.

While some low-skilled investors are leaving the business, the big names are just starting to come and break new ground that has a huge impact . With that said, it’s quite likely that hackers will target this industry more.

Security analysts single out several main techniques used by threat actors to hack cryptocurrency trading platforms. The list below reflects the common attack and hthe countermeasures that every user of these platforms need to follow.

Phishing emails

The following scenario applies: security of the cryptocurrency exchange you are using have detected suspicious activity in your account.  the service has sent a notification to the email address  in your profile. The message contains a hyperlink and a recommendation to change your password immediately in order to prevent your funds from being stolen.

With the simplicity of this scheme, many newbies have actually got on the hook and continue to fall for it. If you follow that link, there will  be several fields to fill out: your old password, new password, and confirmation of the new password. This way, while trying to maintain control of their funds, lots of traders unknowingly hand them over to crooks.

There are  simple steps that will keep you safe:

·         Do not send your personal information to third parties.
·         Scrutinize the sender’s email address: messages from major exchanges are usually sent     from official domains.
·         Do not open emails from unknown sources.

Phishing sites

All cryptocurrency traders are literate people. However, when it comes to typing the name of an exchange in the address bar correctly, or visiting its website many of them overlook misspellings and a missing security verification icon in the browser.

As soon as such traders enter their username and password, the malefactors obtain virtually all the credentials they need to access the account. The only way to avoid this fraud is to pay close attention to detail, because phishing-related copycats of popular trading platforms are unlikely to vanish in the near future.

·         Bookmark your main trading website and visit it only by clicking this bookmark.
·         Use the best VPNs that encrypt your traffic.

Hacking Email

The email used to one’s account at a cryptocurrency exchange tends to be look at by hackers just as heavily as the account itself. Having taken control of your email, a perpetrator can send a password recovery request, set a new temporary password and easily transfer the funds to their own wallets. Two-factor authentication (2FA) is the most effective protection  in this case that prevents third parties from entering your account.

TeamViewer as an entry point

Its sadden that even two-factor authentication doesn’t ensure total security if Google Authenticator is embedded in a web browser on a PC. With the TeamViewer tool installed, chances are that the hacker will get access to Google authentication codes in real time and leverage them to hack into your profiles at the exchange.

2FA is effective as long as the application is installed on another device such as a phone. This reduces the risk of being hacked.

So many cryptocurrency exchange users leave the fundamental security practices because they are sure they will never get in trouble like the customers of Mt. Gox and Coincheck did.  even the most sophisticated trading platforms have a number of covert vulnerabilities that threat actors can potentially exploit to hack the system.

Some people might find the enabling of two-factor authentication redundant, but you should keep in mind at all times that the black hats can outwit even the most successful traders. So, it’s imperative to follow a few basic and simple guidelines that will significantly reduce the risk of losing assets in the aftermath of hacker attacks and scams.

The author, gvowealth. 

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