The Menace of Cryptocurrency Hacking: Statistics, Trends, and Prevention Tips

It is reported that according to the latest research report from Kaspersky, a network security company, it is estimated that about 30% of American cryptocurrency investors have become victims of hacking and theft. The average value of their lost assets is close to $100000, and even 15% of respondents admit that the value of lost cryptocurrency can be as high as $1 million. According to data, the majority of victims are aged 18-24 years, and the proportion of victims over 55 years old is 8%. （cryptopotato）

Kaspersky: 13 US crypto investors or victims of hacker theft

Cryptocurrency, the digital currency market, is thriving, and so are the number of cyber-attacks that plague it. According to the latest research report from Kaspersky, a network security company, it is estimated that about 30% of American cryptocurrency investors have become victims of hacking and theft. The average value of their lost assets is close to $100,000, and even 15% of respondents admit that the value of lost cryptocurrency can be as high as $1 million. This article explores the statistics, trends, and prevention tips to protect yourself against such predatory cyberattacks.

Why Cryptocurrency Investors are Prone to Attacks

The cryptocurrency market is decentralized, meaning that it operates under the principles of blockchain technology where there is no central authority. While this could bring privacy and security, it could also leave users’ transactions exposed and vulnerable. Cryptocurrency funds, once lost, are near impossible to recover due to the unregulated nature of the blockchain. The exchange market is also another vulnerability point, with hundreds of exchange platforms being notoriously hacked, leading to the loss of billions of dollars.

The Rise of Cryptocurrency Cyberattacks

The Kaspersky report highlights the rising number of cyberattacks on the digital currency market. The report estimates that there has been a 1.5-fold increase in attacks on cryptocurrency users this year compared to 2020. These attacks come in different forms, such as phishing, malware, ransomware, and DDoS Attacks, among others. As the number of cryptocurrency users increases, so does the number of attackers and the sophistication of the weapons.

Common Examples of Cryptocurrency Cyberattacks

#Phishing attacks

In this type of attack, hackers try to acquire the target’s sensitive information such as passwords, private keys by luring them into revealing their details. This occurs through an official-looking fake website or an email.

#Malware attacks

These attacks result from downloading malware on a victim’s computer, which subsequently leads to accessing the victim’s digital wallet.

#Ransomware attacks

Ransomware is malicious software that encrypts the user’s data until a ransom is paid. The attack aims to restrict access to the victim’s cryptocurrency wallets.

#DDoS attacks

A Distributed Denial of Service (DDoS) attack is a cyber-attack where multiple systems target a server, causing a denial of service for users of the targeted resource.

The Demography of Cryptocurrency Cyberattack Victims

According to the Kaspersky report, there are age and gender disparities among cryptocurrency users that experience cyber-attacks. The majority of victims are aged between 18-24 years, accounting for 42% of the victims. This age group is followed by 25-34 years, representing 26%. Meanwhile, gender parity was reported, with both men and women victims of cyber-attacks.

Tips to Prevent Cryptocurrency Cyberattacks

The prevention of cyber-attacks requires a multi-faceted approach. Stakeholders should consider implementing the following prevention tips to protect their cryptocurrency assets from cyber predators.

Use Multifactor Authentication

One way to protect your cryptocurrency from cyber predators is to use multifactor authentication. This feature is available from the cryptocurrency wallet provider. A multifactor authentication system requires multiple forms of identification before accessing cryptocurrency funds.

Store Cryptocurrency in Secure Wallets

Cryptocurrency investors should consider storing their digital assets in their wallets even though this does not provide absolute security. Hardware wallets are the most secure forms of wallets, and investors should opt for them rather than software wallets.

Educate Yourself

To avoid being a victim of cryptocurrency cyber-attacks, investors should educate themselves on the risks and stay updated about new developments in the industry.

Regularly Monitor Account Activities

Cryptocurrency investors must regularly monitor their accounts for any suspicious activities that may indicate a cyber-attack.

Conclusion

Cryptocurrency cyber-attacks are on the rise, with cyber predators employing tech-savvy methods. It is crucial to take preventive measures to avoid losing digital currency assets. Multifactor authentication, secure wallet storage, self-education, and regular monitoring of accounts are some of the ways people can protect themselves from cyber predators.

FAQs

#Q: What should you do if you become a victim of cryptocurrency hacking?

A: If you become a victim of cryptocurrency hacking, the first thing to do is to report to the wallet or exchange provider. You can also report to law enforcement officials.

#Q: Can you recover stolen cryptocurrency funds?

A: One of the disadvantages of digital currency is that once lost or stolen, it is hard or impossible to recover.

#Q: Can DDoS attacks affect cryptocurrency?

A: A DDoS attack can render a cryptocurrency exchange platform inaccessible, thereby affecting trade activities.