Major Cyberattacks. Organizations and individuals must embrace cybersecurity best practices to protect themselves against attacks in the dynamic world of cyber threats. By reducing the possibility of typical cyberattacks, one can successfully protect against them. These attacks include phishing, ransomware, and denial-of-service attacks.
Cyberattacks are a well-known and persistent danger in today’s linked digital world, and the bitcoin industry is no different. However, crypto companies should know how crucial cybersecurity incident response plans are to lessen the impact of hacks. This article explores the eight Major Cyberattacks in the crypto realm, important cyber threat avoidance techniques, and cybersecurity readiness strategies to help you defend yourself against them.
What is a Cyberattack?
A cyberattack is an attempt to obtain unauthorized access to, disrupt, or damage computer networks, devices, or systems. Criminals commit these crimes when they intend to attack, steal from, or otherwise disturb a target by taking advantage of a vulnerability.
Major Cyberattacks targeting cryptocurrencies have grown in frequency and severity in recent years, causing substantial monetary damage. Despite a 54.3% decrease from 2022 in the anticipated amount of assets taken in Major Cyberattacks ($1.7 billion), the number of individual hacking activities increased in 2023. This suggests that the frequency and variety of attacks are increasing, even though the total value of stolen assets may have decreased.
There has been a marked decline in the number of attacks directed at decentralized finance (DeFi) protocols. These platforms lost $1.1 billion in 2023 out of $3.1 billion in stolen cash in 2022. However, victims of cybercrimes such as email phishing have lost millions of dollars.
These numbers highlight the importance of being alert, educated about typical cybersecurity risks, and prepared to avoid Major Cyberattacks. By arming themselves with this knowledge, users can detect and prevent common cyber hazards like phishing and social engineering attacks.
Phishing Attacks
To commit a phishing attack in the cryptocurrency Major Cyberattacks, one must employ deceptive means of communication like emails, messages, or websites to trick victims into divulging sensitive information like private keys or seed phrases.
For instance, cybercriminals could pose as a popular cryptocurrency exchange in an email, claiming that the receiver’s account is at risk and requesting that they validate their details by visiting a specific URL. Victims risk giving hackers access to their funds if they click the link and inadvertently enter their private keys or seed phrases on a fake website.
How to prevent phishing scams
A multi-pronged strategy, including numerous cybersecurity preventative measures, is necessary to increase cyber resilience against phishing attacks. A few instances illustrate this:
- An extra layer of protection for Bitcoin accounts can be achieved with two-factor authentication (2FA).
- Before entering any crucial information, double-check the URL to be sure it is legitimate.
- Avoid opening attachments or clicking links in suspicious messages; always verify the sender’s identity.
Malware Attacks
When criminals infect devices or hack wallets with malicious software to steal Bitcoin, it is known as a malware attack. Using Major Cyberattacks, an attacker would want to steal cryptocurrency from unsuspecting victims and store it in their wallet.
One popular kind of mining malware is crypto-jacking, which stealthily uses the victim’s computer to mine cryptocurrency. Criminals frequently insert harmful code into websites or apps, allowing them to stealthily use the victim’s resources without their awareness or permission. Because of this illegal use, the victim could lose money, have their energy bills go up, or have their item stop working properly.
Precautions to protect against crypto-malware attacks
Users in the Bitcoin business can safeguard themselves against malware attacks by implementing several cyberattack defensive techniques, including:
- Users in the Bitcoin business can safeguard themselves against malware attacks by implementing several cyberattack defensive e techniques, including:
- Only download programs and software from trusted and authentic websites to avoid downloading products contaminated with malware.
- Malware often disguises itself as legitimate software, so be wary of downloading wallet apps or browser extensions from sources you don’t know or trust.
Ransomware Attacks
Ransomware attacks in cryptocurrency involve harmful software encrypting files that hold the victim’s private keys or Bitcoin wallets, rendering them unreadable. Once the victim provides the attacker with the decryption key, the criminal will often demand payment in Bitcoin (BTC). Most people are familiar with the WannaCry attack and its demand for Bitcoin ransom. The Ryuk ransomware was another notable example; it sought Bitcoin payments from numerous companies. Additionally, bitcoin exchanges were the targets of the notorious Maze ransomware organization, which wanted substantial sums of Bitcoin in exchange.
How can crypto-ransomware attacks be prevented?
Bitcoin users can protect themselves from ransomware threats by enhancing their cybersecurity posture. Among the precautions taken are:
- To protect cryptocurrency wallets against ransomware, it is recommended to regularly back them up offline and store private keys in a cold storage facility.
- To protect cryptocurrency wallets against ransomware, it is recommended to regularly back them up offline and store private keys in a cold storage facility.
- Operating systems and security programs should be updated to patch vulnerabilities and guard against known ransomware attacks.
Denial-of-service (DoS) Attacks
In cryptocurrency, a Denial-of-Service (DoS) attack occurs when an attacker tries to interrupt normal operations by sending excessive traffic to a crypto exchange or a blockchain network. Attackers use this strategy to potentially slow down or disrupt the target system’s services using all its resources. This could cause problems with the system’s ability to validate blocks, process transactions, or keep the network running smoothly.
A traditional denial-of-service (DoS) attack on a blockchain occurs when malicious actors use protocol or consensus process vulnerabilities to overwhelm the network with transactions or data packets. Unauthorized transactions or requests continue to use network bandwidth and processing capacity, leading to congestion and delays.
Take the 2016 “Spam Attack” denial-of-service (DoS) attack on the Ethereum network as an example. During this attack, the culprit flooded the network with a large number of low-value transactions, causing delays in block validation and transaction processing. Due to the increased transaction costs and network congestion induced by the denial-of-service attack, Ethereum users encountered slowdowns.
How to mitigate the risk of a DoS attack
Stakeholders in the Bitcoin field should safeguard themselves from denial-of-service attacks by executing strong cyber protection tactics. Some cybersecurity procedures that can be used to protect against Major Cyberattacks are:
- To reduce the chances of these attacks, choose trustworthy exchanges with robust security protocols and dedicated tools to avoid denial-of-service attacks.
- To reduce the chances of these attacks, choose trustworthy exchanges with robust security protocols and dedicated tools to avoid denial-of-service attacks.
- Consider using a hardware wallet to protect your Bitcoin from denial-of-service attacks that target online exchanges.
Man-in-the-Middle (MitM) Attacks
Intercepting user-to-crypto exchange or wallet communication to acquire private keys or login credentials is a man-in-the-middle (MITM) attack in cryptocurrency. When a malicious actor inserts themselves in the middle of a data transmission, they gain the ability to listen in on the conversation and maybe even manipulate the data being sent.
Hackers steal users’ Bitcoin holdings by accessing private keys and login credentials through security holes in the communication route. A MitM attack could compromise any cryptocurrency transaction or user account.
In 2018, hackers launched an attack against Ledger hardware wallets, infecting targeted systems with malware. Because the malware altered the destination address displayed on the Ledger screen during Bitcoin transactions, customers had to reconnect their Ledger devices to computers that had been infected. So, instead of going to the right person, the money ended up in the attacker’s wallet.
What are the best defences to prevent a MiTM attack?
To protect yourself against cyber dangers like Man-in-the-Middle attacks, you should do the following:
- Please verify that the websites you visit use secure connections (HTTPS) and that their SSL certificates are up-to-date.
- Avoid using public WiFi networks to access cryptocurrency accounts, as the traffic on these networks can be easily intercepted.
- Use a virtual private network (VPN) to encrypt your internet traffic and enhance security when accessing Bitcoin accounts online.
SQL Injection Attacks
Blockchain apps often employ Structured Query Language (SQL) to connect to traditional databases, even though the blockchain is inherently secure. An SQL injection attack targets these interaction points. The application’s input processing is a potential weak point that these Major Cyberattacks aim to exploit.
When a blockchain app fails to validate or sanitize user input adequately, malicious SQL code can be entered into fields such as search bars or forms. If the Major Cyberattacks are successful, the unprotected application will run this code, granting the attacker unauthorized access to the database.
Blockchain systems may face severe repercussions. Those who launch attacks have the potential to acquire private keys, transaction data, or other sensitive user information, which could result in large financial losses. In addition, they can alter or remove data recorded in the program’s database, which may disrupt the application’s operation or put the integrity of the blockchain records linked with the application in danger.
How are SQL injection attacks prevented?
User action to avoid SQL injection attacks is:
- Choose trustworthy sites that have already established a pattern of robust security procedures.
- Prepared statements or parameterized queries can further isolate SQL code from user input, helping to avoid unauthorized execution.
- To mitigate risks, it would be best to inform the platform’s security staff of any possible vulnerabilities you may discover.
Zero-day Attacks
Attackers launch zero-day attacks in the cryptocurrency market when they take advantage of crypto wallet software or hardware flaws that have not yet been publicly acknowledged. Because engineers failed to notice these flaws, attackers can surprise consumers with devastating strikes. The difference between zero-day and known vulnerabilities is that attackers find the former before developers can fix them with security upgrades.
Users will remain susceptible to exploitation until developers create and release updates or alternative security measures. For example, criminals could exploit a hole in the logic that executes smart contracts on a blockchain to steal money or covertly change transactions.
Axie Infinity’s blockchain network, the Ronin Network, was hit hard in March 2022 by a zero-day exploit. Hackers exploited a previously unknown vulnerability in the network’s bridge contract and validator nodes to steal an incredible $625 million worth of Ether ETH and USD Coin USDC. Because of this flaw, the attackers may create fraudulent withdrawals by evading the network’s security measures.
How to protect against zero-day attacks
One can avoid zero-day attacks by following these precautions:
- To lessen the likelihood of exploitation, ensure your operating system, wallet, and exchange are all up-to-date by applying patches and updates frequently.
- Consider using a hardware wallet for offline cryptocurrency storage. This provides an additional layer of security against remote Major Cyberattacks.
- Subscribing to security news and alerts from reputable sources can help you stay informed about security upgrades and vulnerabilities. Thorough security audits are useful for finding vulnerabilities in blockchain code and infrastructure.
Social Engineering Attacks
In the cryptocurrency industry, social engineering attacks include impersonating legitimate users or using social media to gain unauthorized access to their cryptocurrency holdings. Attackers use psychological techniques to trick and influence victims into giving over sensitive information, such as login credentials or cryptocurrency, or into sending funds directly to their wallets.
Crypto users and their assets are vulnerable to these tracks, as perpetrators often use the victims’ trust and familiarity with the cryptocurrency to fool them. Being alert and vigilant is key to protecting yourself against social engineering tactics in the bitcoin industry. In July 2023, a sophisticated social engineering attack cost cryptocurrency payments firm CoinsPaid $37 million. What seemed like a benign job offer came in at CoinsPaid and triggered the attack.
The hackers tricked the employees into installing a malicious application on their computers. They impersonated recruiters and conducted detailed interviews. After using this malicious program to collect sensitive company information, including profiles and keys, the criminals accessed the organization’s infrastructure and stole funds.
How can social engineering attacks be defended against?
To protect themselves from social engineering attacks, blockchain users should do things like:
- No respectable company will ever ask for your private key or seed phrase; thus, revealing them is unnecessary.
- Be wary of investment opportunities and unsolicited proposals, particularly if the promised returns appear too good.
- Verify the content’s integrity and validity by checking with multiple reputable sources before proceeding.
