Hello everyone, this is Kate from Lumi, and today we have one of the most important topics on the agenda – cybersecurity. In the latest study, Chainalysis concluded that the number of crypto crimes has decreased over the past three years. According to this study, most theft comes from scammers who target a specific user or company.

Part 1. Types of cryptocurrency scams: Universal security tips.

Despite the positive trends in the fight against cybercrime, we have noticed that news media are increasingly writing about the most sophisticated ways to steal crypto assets. And here, this thesis undoubtedly suggests itself: In the modern world, it is necessary to observe preventive measures of cybersecurity.

I distinguish between two main types of fraud in cryptocurrency: malware and scams on the Internet. In the first part of the article, we will talk about specific examples of malware.

1. Cryptojacking (hidden cryptocurrency mining) is a scheme to use people’s devices (computers, smartphones, tablets, or even servers), without their consent or knowledge, to secretly mine cryptocurrency on the victim’s dime. Instead of building a dedicated cryptomining computer, hackers use cryptojacking to steal computing resources from their victims’ devices. Basically, such viruses get into the computer through mailing lists or when downloading files from unverified sites. This type of fraud was trendy in 2017, but even now, some websites and applications can extract cryptocurrency on your device without you noticing. Another tricky type of virus-miner hides in a JavaScript script and runs along with any content on the page, such as the playback of videos on video hosting or online games.

Among the obvious signs of hidden cryptojacking: increased energy consumption, rapid heating of the computer, a characteristic buzz (at high costs and a heavy load on your device).

Part 1. Types of cryptocurrency scams: Universal security tips.

2. Ransomware is a type of malware (malicious software) that cybercriminals use to ransom people. Once a computer or network is infected with ransomware, the malware blocks access to the system or encrypt the data on that system. Cybercriminals demand that the victims pay a ransom to regain access to their computer or data.

Examples: Locky, WannaCry, Ryuk, GandCrab.

Part 1. Types of cryptocurrency scams: Universal security tips.

3. Clipper is malicious software targeting cryptocurrency transactions. It operates by replacing the recipient cryptocurrency wallet (crypto wallet) addresses. How does this happen? When you copy the recipient’s address to the clipboard, the program can replace it with the fraudster’s address, and in this case, your money will go to the wrong address and go to the scammers.  This type of malware can also introduce the Supreme botnet mining client and the information theft program Poullight into infected systems, thereby expanding the malware’s functionality and increasing the potential risks associated with its infection.

BTC-Clipper, ProstoClipper, Oski and Qulab are some examples of other malicious programs, which similarly target cryptocurrency transactions and/or wallets.

Part 1. Types of cryptocurrency scams: Universal security tips.

In most cases, you can prevent device hacks and scammers from accessing your data. We will list the main methods of intruder virus penetration virus below.

1. via email and SMS that have files to download or links to a third-party site
2. through adult sites, sites with hacked apps and pirated movies, torrent trackers, etc
3. APK
4. via download of an unlicensed program from an unknown site
5. Via a flash drive
6. via browser plugins

How to protect yourself from viruses, scammers, and phishers?

There are some universal tips:

1. Install a reliable antivirus software on your device.
2. Check the authenticity of sites, names, links, and domains. The “lock” icon at the top of the browser bar is also an indicator that protects the site.
3. Never copy your mnemonic and do not send it on social networks, via email correspondence, or SMS. Don’t save it in apps, online notes, or other services.
4. Do not install unlicensed apps, plugins, or software.
5. Do not open suspicious emails/links and do not download files from them.

Pay special attention to the small tips that will help you protect your device and save your money. We especially ask you to pay attention to this for Windows and Android users, as according to statistics, it is the users of these systems who are most often exposed to scamming attacks.

And, of course, we want to remind you that you should never, under any circumstances, share your mnemonic with third parties. Do not enter into suspicious giveaways that promise to increase your income several times. Always be careful and vigilant, do not let the scammers deceive you. Take care of yourself. The Lumi team is always with you.

Stay safe and follow Lumi Wallet on Twitter, Telegram, Facebook, TikTok, or Reddit for more crypto knowledge and news. You can also connect with us on LinkedIn.