In cybersecurity, the stakes are higher than ever before, to lighten the load of infosec professionals already dealing with the sudden and rapid adoption of digital technologies. By implementing a system of digital currency such as cryptocurrency, you are able to send and receive payments over a secure connection. A cryptocurrency is also broken down into tokens, which can then be used to make payments for any and all services or products.
Cryptocurrencies are not legal tender in Canada as well as most jurisdictions, any other traditional legal methods, such as irreversible payments, all types of cryptocurrencies have become more popular among many investors and the public in general.
However, when there are investment opportunities, you will surely find other opportunities for scams to come your way. Microsoft’s Digital Defense Report notes that attacks not only became more numerous in this digital era, they also rapidly increased in sophistication, exploiting techniques that make them harder to spot.
How Scams Can Be Spotted Involving Cryptocurrencies
Spotting a scam involving cryptocurrencies requires an understanding of the different types of scams that exist, as well as their operation is necessary. A few of the scams often involving cryptocurrency are the following:
Phishing – A phishing scam involves a potential investor visiting a website after clicking on a link that takes them to a fake site, a bait that most fall for when opening emails. Does it make sense to randomly click links on emails let alone social media DM? Like all other scams, the ultimate goal is to steal identifiable data and other sensitive information to obtain financial gain.
So why is phishing so dangerous? If you suspect an account has been compromised, you can always go change the password. That will fix the problem, right? What are the chances that a person uses that same password on another site? The damage can go deeper…. the hacker is usually one step ahead of you! Here’s the scary part: phishing is far more dangerous than most people realize. Multi-factor authentication can be simulated to make the user think they have accessed a genuine website. An attacker can use the stolen credentials to access the user’s network, gain control over the DNS, and replace content. One estimate pegs the amount of theft perpetrated using this method at $3.5 million for 2019. According to Security Boulevard, phishing attacks shot up 600% since the end of February 2020 and 80% of firms experienced an increase in cyber-attacks year on year.
¨Spoof¨ Website – This is a type of fake website that will extract personal information the moment the site is reached. It mimics an official site so it may seem like a trustworthy site to conduct business with. Their goal is also to gain a financial advantage on behalf of their victims as well as place viruses on their computers.
Fraudulent Investment – A fraudulent investment involves the offering of an incredible financial investment. You need to remain skeptical with these types of offerings, mainly because of their sudden occurrence. Many financial fraudsters lie low all around the internet in search of their next big score with cryptocurrency by offering assurance. Stay alert for any requests to make financial transactions, opportunities that are impractical, or bold requests for keys to your wallet.
Fraudulent Apps – You may not be familiar too much with these due to them being quickly removed from the Google and Apple App stores. Regardless, an owner of cryptocurrency could still become scammed quickly enough. A few details to be on the lookout for include any spelling errors, bad images or design. Always make sure to take your time if downloading any app as you never know what you are truly downloading.
Best Practices to Prevent Being Scammed
Once you get caught up in a financial scam, you will ultimately come out as the loser with a lot less money than before. Luckily, there are quite a few methods and best practices available that can help you circumvent them. Below, are some of the most common ways to avoid the crypto scams that are currently circling around the internet.
Take Notice of your Inner Feelings – When you begin to have a ¨gut feeling¨ it is likely the fact that something does not feel right. When this happens, you should pay more attention so as not to be persuaded if you are unsure.
Delete Notifications that are Unsolicited – Many times we get notifications either by call, text, or email that are unsolicited. When these unsolicited messages come through concerning crypto investments, it is best to just delete them and walk away.
Obvious Errors in Spelling – Getting an email that has obvious errors in the spelling is a clear sign that a scam is at hand. This is particularly true if you notice them on a website. Any reputable website would want to provide content that is clear to understand and free from errors before being published.
Bogus Website – Like it was mentioned earlier, you need to remain on guard when investing online with cryptocurrency. Many times, a website will appear to have everything needed to appear official but with tiny mistakes involved. The main mistake may be the URL itself such as the encryption for https.
Coercion – Feeling like you are being forced to do something is always a bad sign. This is especially true if a feeling of uncomfortableness sets in. If this is the case, then you will be likely dealing with a scam. Make sure that the investment you make is the investment type you want.
With regard to enterprise security services, Microsoft 365 Defender is used for post-breach analyses
Microsoft 365 Defender – Microsoft Defender is a comprehensive collection of XDR technologies that prevents, detects, and responds to threats across identities, endpoints, applications, email, IoT, infrastructure, and Cloud platforms. Leverage Microsoft Defender to keep your organization safe and save time through automation and AI. Microsoft Defender is delivered in two ways, Microsoft 365 Defender for end-user environments and Azure Defender for Cloud and hybrid infrastructure. learn more
Last Updated on 12/09/2021 by Emmanuel Motelin