The great haste into cryptocurrency has captured the interest of all types of investors. However, along with investors, it has also caught the attention of fraudsters too. Scammers mostly target to steal private information like sensitive security codes. To stop or avoid this augmented arise in reported crypto scams, awareness of the general types of scams is necessary to protect yourself.
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In this guide, we are going to see some common attacks such as phishing, routing, Sybil, and 51% attacks.
1. Phishing attacks
Hackers mostly try to gain a user’s credentials through phishing. Fraudsters send emails to wallet key owners and make sure that the email looks like they are being generated by a legal source.
With the help of fake hyperlinks, the emails ask users for their credentials. Getting access to a user’s credentials and other sensitive information can create big trouble for the user and the blockchain network.
2. Routing attacks
Blockchains rely on real-time, large data transfers. Hackers can interfere with data as it’s transferred to internet service providers. In a routing attack, it seems to be normal as blockchain members typically can’t see the threat. However, behind their back, fraudsters get successful to extract sensitive data or currencies.
3. Sybil attacks
Sybil word refers to a famous book character confirmed to have a multiple identity disorder. In a Sybil attack, hackers flood the network and crash the system by creating and using many false network identities.
4. 51% attacks
Mining needs a huge amount of computing power, especially for large-scale public blockchains. However, a miner or group of miners could attain more than 50% of a blockchain network’s mining power if they could rally enough resources. Achieving more than 50% of the power means grabbing control over the ledger and the ability to manipulate it. Even so, Private blockchains are not vulnerable to 51% attacks.
Let’s look at some points that will help to prevent yourself from scammers
- If you don’t really understand how virtual currency works, then don’t put money in it. Else you can lose money that you can’t afford.
- Based on advice from someone you’ve only just met online, don’t invest in or trade cryptocurrencies. Use your own brain.
- Don’t share your confidential credentials or private keys, which allows you to keep in touch with your virtual currency, with anyone;