Cyber Criminals Continue to Target Cryptocurrencies

As digital currencies grow into a more conventional asset class, financial institutions worldwide have begun to use cryptocurrencies and blockchain technology as part of day-to-day business.

While cryptocurrencies have grown in value, various new up-and-coming coins have also been introduced to the market, with seemingly hundreds pouring into the crypto currency market within the span of months. These alternative coins have wide appeal for private investors as well as financial institutions. However, cybercriminals have begun to dismantle trust in these coins while creating new methods to defraud and steal from crypto-holders.

Malicious online parties have several methods of attack used to defraud and scam others. A common tactic is the stealing of cryptocurrency wallet accounts through methods such as phishing. There are also a variety of other scams plaguing the cryptocurrency market, including fraudulent coins meant to steal from investors.

Not only are alternative coins being targeted, but major players in the cryptocurrency market such as Bitcoin have become victims of cybercriminals on multiple occasions. This is leaving some financial institutions scratching their heads as to how one can defend their cryptocurrency investments from attacks.

According to this report from CNBC, newly established Bitcoin ATMs throughout the country are being used in order to scam cryptocurrency investors out of Bitcoin through use of QR codes. While these incidents may seem contained to cryptocurrency ATMs, the larger threat of using these ATMs to perpetrate crime can have a vast effect on black market dealings, something that can negatively affect the strength of the cryptocurrency market.

Those institutions that have crypto as a vested interest would do well to secure their investments. To do this, robust cybersecurity measures meant to monitor and mitigate potential breaches are necessary.

Drawbridge is a premier provider of cybersecurity software and solutions to the alternative investment industry. Complete with a technology platform meant to assess cyber risk and boost your firm’s risk posture, Drawbridge can see to it that your firm is defended from malicious online parties seeking to take advantage of your investments.

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