Unmasking Crypto Thieves: Bitrace Uncovers Top Methods and Countermeasures
Summary:
Blockchain forensic firm, Bitrace, outlines three tactics hackers use to steal assets from digital wallets: search engine optimization, clipboard hijacking, and liquidity mining scams. To track down the stolen funds, crypto users can retrace transaction fees, use blockchain explorers, and professional tools. Recent crypto thefts target both individual investors and organizations, with a notable case being a Telegram messaging app, Maestrobots, compensating user losses with over $1 million from its own revenue.
Investors seeking to outsmart thieves who are quickly emptying cryptocurrencies from digital wallets need to understand the diverse methods these swindlers depend on. Bitrace, a renowned blockchain forensic firm, has outlined three successful strategies used by criminals to infiltrate the digital wallets of cryptocurrency enthusiasts – these are search engines, clipboard hijacking, and liquidity mining coupled with token theft.
It has been discovered that most crypto investors who lament of abrupt disappearance of their coins might have recently downloaded crypto-related applications from unauthentic sources. Cybercriminals utilize Search Engine Optimization (SEO) tactics to rank at the top in online search results, unintentionally luring users to install and subscribe to deceptive apps equipped with hidden entry points. Clipboard hijacking is a method that automatically captures or alters text data copied from clipboards. This technique usually steals seed phrases from users, providing them with access to wallets and the ability to deplete funds. Bitrace reported a case where a fraudulent Telegram app was used to change the recipient wallet address copied on the clipboard, enabling users to inadvertently transfer their tokens to the thief.
Moreover, traditional "high return and low risk" liquidity swindles also feature among the top three widespread scams leading to unexpected token vanishing. Bitrace suggests three ways for cryptocurrency users to track down purloined funds, starting with retracing transaction costs. Often, the hacker's address is found by tracing back to the source of transaction fees paid to transfer the stolen assets.
Cryptocurrency enthusiasts can enhance their chances of recovering stolen funds by utilizing blockchain explorers and expert tools. For more insights on tracking stolen crypto, refer to Cointelegraph Research's piece that breaks down how blockchain investigation aids in fund recovery.
Beyond individual investors, fraudsters frequently divert assets from crypto enterprises as well. To rectify a recent exploit, Maestrobots, a cohort of cryptocurrency bots on the Telegram messaging app, compensated all user losses using its own revenue, a sum exceeding $1 million or 610 ETH. Blockchain security establishment, CertiK, authenticated to Cointelegraph that it had identified transactions evidencing the 334 ETH payout done by Maestro to its users. A Maestrobots representative told Cointelegraph, "Despite the anticipation of a token market buy, majority of the tokens rebounded. Most of these tokens are still in circulation and thriving.
Published At
10/30/2023 8:22:19 AM
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