Today on cryptocurrency toolbox, we want to examine some of the possible ways hacker use in hacking cryptocurrency exchange.
Security analysts has shown different type of system and strategies used in hacking cryptocurrency trading and exchange platforms. We’ve listed below common methods and it will be a wake up call for cryptocurrency exchange platform to strengthen security of their platforms.
Most cryptocurrency user and traders are literate people. However, when it comes to typing the name of an exchange in the address bar correctly, or visiting its website via a hyperlink, many of them overlook misspellings and a missing security verification icon in the browser.
As soon as such hapless traders enter their username and password, the malefactors obtain virtually all the credentials they need to access the account. The only way to avoid this fraud is to pay close attention to detail, because phishing-related copycats of popular trading platforms are unlikely to vanish in the near future.
- Bookmark your main trading website and visit it only by clicking this bookmark.
- Always use the best VPNs that encrypt your traffic.
Examine this situation: security systems of the cryptocurrency exchange you are using have detected suspicious activity in your account. In response to this, the service has sent a notification to the email address you indicated in your profile. The message contains a hyperlink and a recommendation to change your password immediately in order to prevent your funds from being hacked.
Despite the whole simplicity of this scheme, many newbies have actually got on the hook and continue to fall for it. If you follow that link, there will typically be several fields to fill out: your old password, new password, and confirmation of the new password. This way, while trying to maintain control of their funds, lots of traders unknowingly hand them over to hackers.
This are ways in which you can be save from them:
- Do not open emails from unknown sources.
- Do not send your personal information to third parties.
- Scrutinize the sender’s email address: messages from major exchanges are usually sent from official domains.
The email linked to one’s account at a cryptocurrency exchange tends to be targeted by hackers just as heavily as the account itself. Having taken control of your email, a perpetrator can send a password recovery request, set a new temporary password and easily transfer your funds. Two-factor authentication (2FA) is the most effective protection mechanism in this case that prevents third parties from accessing your account.
TeamViewer as an entry point
Unfortunately, even two-factor authentication doesn’t ensure 100% security if Google Authenticator is embedded in a web browser on a PC. With the TeamViewer tool installed, the attacker will get access to TOTP authentication codes in real time and leverage them to hack into your profiles at the exchange.
2FA is effective as long as the application is installed on another device such as a smartphone. This reduces the risk of being hacked easily.
A lot of cryptocurrency exchange users neglect the fundamental security practices because they are sure they will never get in trouble like the customers of Mt. Gox and Coincheck did. However, even the most sophisticated trading platforms have a number of covert vulnerabilities that threat actors can potentially exploit to hack the system.
Some people might find the enabling of two-factor authentication redundant, but you should keep in mind at all times that the black hats can outwit even the most successful traders. So, it’s imperative to follow the simple guidelines that will significantly reduce the risk of losing assets in the aftermath of hacker attacks and scams.