Users in the vast digital asset ecosystem are often prone to online breaches. The recent experience of Mark Cuban, the renowned US investor, is a stark reminder of how fortunes can vanish in the blink of an eye from a crypto wallet.
For proper protection against cyber-attacks, consider three simple yet effective measures discussed in this guide. However, it is critical first to understand the nature of the threats that often occur in the digital landscape.
Lazarus Group is the most notorious hacking group responsible for high-profile attacks on digital asset wallets. Many analysts opine that the mysterious and notorious hacking entity has deep ties to North Korea, and their attacks are based on the interests of the Asian nation.
Nevertheless, the group has made headlines for its intricate cybercriminal assaults on several crypto platforms. Most notably, the group has taken responsibility for the infamous WannaCry ransomware attack.
This operation disrupted vital services in numerous establishments, from important healthcare institutions to top government agencies. Once they infect their targets’ machines or files with encrypted malicious software, they force their victims to pay a ransom in Bitcoin (BTC) before unlocking the infected files or machines.
One of the group’s first attacks in crypto was the high-profile breach of the South Korean crypto exchange Yapizon, later rebranded as Youbit in April 2017. This act resulted in the theft of 3,831 Bitcoins, worth $4.5 million at the time of the attack.
Furthermore, the Lazarus Group’s continued forays into the crypto space have sparked concerns that the funds it generates help sustain the North Korean regime as the nation sidesteps international sanctions. Furthermore, the United States Federal Bureau of Investigation (FBI) blamed the Lazarus Group for high-profile cyberattacks in 2023, including the Alphapo, CoinsPaid, and Atomic Wallet breaches.
These incidents have resulted in combined losses of over $200 million.
Leveraging Social Engineering And Human Errors
Most attacks on digital wallets occur because hackers use social engineering, phishing, or both to manipulate unsuspecting victims to access their accounts. In most cases, attackers pose as customer support representatives or may impersonate prominent individuals in the crypto space.
Phishing attacks are ways hackers use to access people’s digital wallets illegally. Exploiters send malicious links to victims by disguising them as the trusted entity’s link.
Often, the content of the email seeks to persuade victims to click on it to validate or upgrade their accounts. However, the link redirects them to a site where their login details are copied and used by the hackers.
Phishing attacks are the most common type of exploit in the digital finance industry, with millions of dollars worth of funds stolen by malicious actors.
How To Avoid Hacks And Exploits
Even as the patterns of attacks continue to get more sophisticated, there are ways that users can prevent their funds from falling into the hands of notorious entities like the Lazarus Group.
Some of the steps are:
Choose hardware wallets for long-term custody: Using a hardware wallet to store your crypto assets is the best way to shield yourself from the activities of hackers. This is because hardware wallets are not connected to the internet, so they are not prone to malware or phishing attacks. This makes them highly secure, providing an extra layer to your wallet.
Activate 2-Factor Authentication (2FA): Enabling 2FA on all your crypto wallets and other digital accounts prevents unauthorized access. With a 2FA, an attacker cannot access your wallet even if your password is compromised.
Be vigilant: For all-around security, users should be careful in clicking links sent to them through their social media inbox or email. Scammers often use this method to access accounts by offering enticing offers to unsuspecting victims.
Since the crypto space is rapidly evolving, hackers will continue devising crafty ways to compromise users’ digital assets accounts. Hence, experts suggest that the basic steps like the above are critical in preventing crypto asset exploits.
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