Wednesday, November 6

2021 is the year of cryptocurrency scams, what to do to protect yourself


2021 es el año de las estafas con criptomonedas, qué hacer para protegerse
With the cryptocurrency boom, the hackers boom also grows.

Photo: Photo by Soumil Kumar in Pexels / Pexels

The 2021 apparently has been the year in which we have talked about cryptocurrencies and this is due to the boom that virtual money has had in the financial market in recent months . But with this boom of cryptocurrencies have also triggered scams on behalf of (fictitious) cryptocurrency platforms.

Scams of pishing, or identity theft, are the most common in these cases . A study has determined that in the first semester of this 2021, The United States stands out among the countries where more fraud of this type occurs, especially due to the popularity that cryptocurrencies have gained in this country. is followed by Brazil and then Nigeria.

The primary modus operandi is to pose as legitimate custodial cryptocurrency wallets. According to researchers, virtual currencies have become the preferred lucrative target of hackers creating fictitious wallets.

This “easy” objective has been given for the creation of false platforms, false wallets or the collection of rewards. As happened with the attacks on the meat processor JBS that had to pay a millionaire ransom in cryptocurrencies ; or with the Colonial pipeline that experienced a similar case.

Likewise, a little less than a month ago, a technological security company discovered the existence of Hundreds of fake cryptocurrency exchange applications that appeared to be legitimate portals of banks or exchange services known for cryptocurrencies .

According to the British company Sophos, this type of company, established for fraud, s and pose as well-known and trusted companies such as: Binance, Gemini, Kraken. They also have bank fronts, cases have been seen with the TD Bank.

Pro and against the methods and wallets we use to protect our cryptocurrencies

  • Custody Wallets: It is another entity that is guarding your cryptos and is used to make exchanges as well. It allows you to manage your funds in the same way as you do “home banking”.

They are beneficial because each portfolio has the responsibility of securing your funds, the problem is that if it is a server fraudulent no one is going to guarantee these funds. Another disadvantage is if the platform declares bankruptcy, you will also lose your cryptocurrencies. This type of wallet is one of the most used by hackers to commit fraud.

  • Software Portfolios: They are the applications that manage your private keys and allow you to access your cryptos directly. The downside of this is that if something happens to the device on which you store this wallet, that is, if your cell phone is stolen or hacked, you can lose all access to your cryptocurrencies.
  • Paper and memory wallets: is when you save your keys written on paper or from memory, but if either of these two things fails then you lose access to your funds.
  • Hardware Wallets: This is like a kind of USB key. And this will be your purse, it has what they call a “recovery sheet” that has your private key written on a piece of paper or even engraved on a piece of fire-resistant metal. With this it is almost impossible for them to hack you, because only you have it, but the problem is if you lose it, you lose everything.
  • Keep in mind that scams and hackers generally find us “Online”, with fraudulent emails, or fraudulent messages with false promises, by Telegram or by WhatsApp. Experts advise that when you receive an unsolicited message, don’t waste time clicking to find out what it is about, simply block the user and avoid problems.

    It should also be taken into account that, the messaging applications of Mobile phones are also hacked and it is possible that you receive messages from a known number but making strange requests about money transfers or keys. This is pishing.