From June this year, 26% of Australians considered cryptocurrency as a worthwhile investment, and over 36% have at one point considered buying cryptocurrency as an investment.
The cryptocurrency space is often characterised by record highs followed by lows. Many predict that cryptocurrencies, like Bitcoin’s value, will increase again and are encouraging people to invest while there’s a current slump.
Cryptocurrencies have become an attractive target for cybercriminals, namely because they are digital, anonymous, valuable and can be sent to anyone, anytime, anywhere.
Transactions are recorded on a decentralised ledger system called blockchains, which allows users to send and receive anonymously, with no registered bank account or financial gatekeepers. In addition, given the cryptocurrency space is relatively new, it is not yet heavily governed, suggesting transactions aren’t closely monitored for malpractice.
Cryptocurrencies have recently been losing value, but with each record high, they have been more widely accepted as a legitimate investment for potentially making impressive returns. As a result, crypto-related scams could increase, with seven out of ten Australians agreeing that cryptocurrency needs more safety and security around it.
According to Security Brief Australia, there was an 86% increase in crypto-miner malware targeting Australians between September and October 2021, which correlates with Bitcoin value beginning to rapidly increase.
There are a number of ways that cryptocurrency is exploited by cybercriminals using common and sophisticated scams.
Crypto-miners
Coin-miners covertly abuse a user’s computing power to mine cryptocurrencies, which can cause hefty electricity bills and affect the longevity of the user’s hardware. These crypto-miners can accumulate hundreds of thousands of dollars in wallets associated with crypto-mining malware.
Crypto-stealers
Crypto-stealers are malicious programs that target cryptocurrency transfer systems. They intercept transactions by infecting devices with a monitoring system to trap and then steal valuable information, such as wallet ID numbers.
Ransomware
Ransomware is a significant cyber threat and cryptocurrency can be viewed as an enabler of ransomware. With cryptocurrencies, cybercriminals can maintain autonomy and anonymity with their requested ransom payments that are permanent and mostly incapable of being tracked by authorities.
More than half (53%) of Australians are concerned about falling victim to a scam by purchasing cryptocurrency. However, there are some simple ways in which users can protect themselves and be aware of potential scams:
- Be cautious of emails claiming to include shipping invoices or credit notes. Do not open attachments in unexpected or untrusted messages. Suspicious email attachments are one of the most common sources of cyber threats.
- Be wary of cryptocurrency posts and advertisements on social media platforms. Research any entity soliciting you on social media. Remember that if the offer sounds too good to be true, then it probably is.
- Double-check URLs and websites before entering details or making purchases. Suspicious links with an illegitimate URL are risky and unsafe.
- Choose services that use strong security measures. Two-factor authentication methods will provide a safeguard from scams and cyber-criminals.
- Never give out your 2-factor authentication security passcodes or passwords.
- Never give anyone remote access to your device. This will give the scammer full access to your online financial accounts and digital files.
- Download digital security, such as Avast One, that blocks malware such as crypto-miners and crypto-stealers for an extra layer of protection.
For further information on cryptocurrencies cybercrime, contact the team at Shakespeare Financial Group.
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