Bitcoin and Cryptocurrency Scams Exposed
Bitcoin and other “Altcoins” (alternative Cryptocurrencies) are making far more headlines than any other Celebrity.
This frame grab made available by the BBC on Monday, May 2, 2016, shows the creator of the Bitcoin, Craig Wright speaking in London.
In 2011, the pair founded a Florida-based firm called W&K Info Defense Research LLC, which was engaged in bitcoin mining and software development and research. Kleiman owned between 50 and 100 percent of W&K, the lawsuit said.
It claims that the Kleiman estate owns the rights to $5,118,266,427.50 worth of bitcoin and IP rights.
The filing says it is “unclear” whether Wright, Kleiman or the two together were responsible for the cryptocurrency’s creation. But the document adds that it is “undeniable” that the pair was involved in bitcoin “from its inception,” and that they acquired a “vast” number of bitcoins from 2009 to 2013.via Self-proclaimed bitcoin creator sued for allegedly stealing $5 billion worth of crypto, other assets
Cryptocurrencies, especially Bitcoin are getting more and more popular despite the roller-coaster ride or price volatility the Digital Currency is going through. Different Coins are mined, created and become popular but not as popular and fast rising as the Bitcoin.
Bitcoin is one of the most widely known names in this sector, and is synonymous with Cryptocurrency, like Zerox is with Photocopier machines. There are many different Coins like Bitcoin, Ethereum and Litecoin that are riding high, but did you know the number of Cryptocurrencies available over the internet as of 19 August 2018 is over 1600 and growing.
Platforms are created to trade Cryptocurrencies and allow people to trade without fees. People have made bad investments because they did not understand how to trade the Cryptocurrencies. As knowledge is lacking, the “big picture view” is not clear and people think when they trade a coin they made a big gain, and then look it up and figure out that some of the money is missing, puzzled they ask where did it go.
Will the EU regulate the Cryptocurrencies
LONDON (Reuters) – The European Union stands ready to regulate Cryptocurrencies if risks from the sector are not tackled at the global level, the bloc’s financial services chief said on Monday.
A global investment craze over bitcoin BTC=BTSP and other virtual currencies in the last year has seen wild gyrations in their valuations, making fortunes for some investors while others have lost heavily.
“This is a global phenomenon and it’s important there is an international follow-up at the global level,” Valdis Dombrovskis told reporters.
“We do not exclude the possibility to move ahead (by regulating crypto-currencies) at the EU level if we see, for example, risks emerging but no clear international response emerging.”via EU says it stands ready to regulate Cryptocurrencies
Are Cryptocurrencies a Threat to the Economy?
Is there a threat to the overall economy with Cryptocurrencies becoming more and more popular. Could they pose a substantial risk for investors? Could Cryptocurrency without safeguards be vulnerable to financial crime? Too many governments they only represent a tiny part of the financial system.
Markus Ferber, a centre-right member of the European Parliament, said a quick EU regulatory response was needed, rather than waiting years for international rules to trickle through – source: EU says it stands ready to regulate Cryptocurrencies.
Cryptocurrency Hacker Attacks on Networks
Criminals continue their quest for acquiring cryptocurrencies without having to buy and manage their own mining equipment. They’re resorting to attacks aimed at stealing the cryptocurrencies via hacking, demanding them as ransom payments as well as sneaking cryptocurrency mining software onto servers to generate virtual currencies (see Cybercriminals Go Cryptocurrency Crazy: 9 Factors). Source: Cryptocurrency Theft: Hackers Repurpose Old Tricks
How do they do it?
Malware is still one of the easiest operators to install on to a computer or network without the user knowing.
Old Trojan Tricks and New Targets are the new wave game.
Web injections and or attacks called “the man in the browser” are specifically designed to be activated when a user is visiting the specific website like a cryptocurrency exchange.
It will intercept the keystrokes of a user and will alter the browser interface as a disguise and the attacker will drain the user account of all the funds.
How the Trickbot hijacks the coins?
“In the normal payment scenario, a user looking to buy coins provides his or her public bitcoin wallet address and specifies the amount of bitcoin to purchase. When submitting this initial form, the user is redirected from the bitcoin exchange platform to a payment gateway on another domain, which is operated by a payment service provider. There, the user fills in his or her personal information, as well as credit card and billing details, and confirms the purchase of coins,” the X-Force researchers write.
“This is where TrickBot hijacks the coins. This particular attack targets both the bitcoin exchange website and that of the payment service to grab the coins and route them to an attacker-controlled wallet.” Source: Cryptocurrency Theft: Hackers Repurpose Old Tricks.
Servers of Enterprises are mainly at risk
Kafeine warns that enterprise resources are very much at risk from these types of attacks. “Because most of the nodes in this botnet appear to be Windows servers, the performance impact on potentially critical business infrastructure may be high, as can the cost of increased energy usage by servers running much closer to capacity,” he writes. “Given the significant profits available to the botnet operators and the resilience of the botnet and its infrastructure, we expect these activities to continue, along with their potential impacts on infected nodes.”
He adds that it’s a virtual certainty that botnets such as Smominru will “become more common and to continue growing in size.” Source: Cryptocurrency Theft: Hackers Repurpose Old Tricks.
Bitcoin is losing its heat to the Thieves
Threat intelligence firm reviewed underground markets and found out that bitcoin even still accepted, is losing its ground and the underground market is more fond of Monero, Bitcoin Cash, Zcash, Litecoin, Dash, and Ethereum.
The firm says that within the next 12 months, it expects bitcoin to no longer be the dominant payment mechanism for cybercrime service buyers and sellers (see Bitcoin’s Reign on the Dark Web May Be Waning). Source: Cryptocurrency Theft: Hackers Repurpose Old Tricks.
Different Types of Cryptocurrency Wallets:
What is a Cryptocurrency Hardware Wallet?
These cryptocurrency Wallets store your information offline so it cannot be hacked. While it is more expensive than most other wallets, It can be a great investment. A lot of people buy 2-4 hardware wallets to spread the risk of losing one. We recommend storing this in a safety deposit box at your bank or in a very safe and secure place in your home. The downside of these wallets is losing your wallet, be careful! For security, we think these are the best cryptocurrency wallets available.
What is a Cryptocurrency Web Wallet?
These are the easiest wallets to use and the most convenient. Most websites will allow for 2-factor authentication through Google, text message, or Authy. This adds a great layer of protection. We have heard of very few cases where these accounts were hacked individually but we have heard of entire exchanges getting hacked which results in stolen bitcoins. We always keep some of our Bitcoin, Litecoin, Ethereum and other Altcoins in web-based crypto wallets so we can easily day trade and move funds around.
What is a Cryptocurrency Desktop Wallet?
These are great wallets for storing cryptocurrency. You don’t have the concern of losing your wallet like a hardware cryptocurrency wallets. You don’t have the concern of getting hacked like web-based cryptocurrency wallets. These desktop wallets are generally free or low cost. You are however at risk of losing your wallet if your computer fails or is lost or stolen.
What is a Cryptocurrency Mobile Wallet?
Both Apple and Android offer mobile app based cryptocurrency wallets. These are great because you can use them on the go and on the fly. We have read several reports on Reddit about fraudulent apps that steal your bitcoin wallet and all of its contents so please be sure to use a well known Mobile crypto wallet.
Trading and buying Cryptocurrencies like Ethereum, Litecoin, Zcash, Monero, Dash, a.s.o is a judgement everyone has to make for themselves. Of course, you should never invest money you can not afford to lose. Trading in Cryptocurrencies can ruin you if you do not know what you are doing. Please take caution.
If you want to start, the first thing you need to do is establish your Crypto Wallet – which is similar to a brokerage account that you need to establish before you can trade equities (stocks/shares), bonds, currencies and commodities.
Have you already invested in Cryptocurrency? What was your experience and what are your thoughts on the development of all of these Alternative Coins. We’d love you to leave your comments and share your thoughts.
All the best Jim
Read our other post on Cryptocurrency