The blockchain was long believed to be unbreakable. The biggest frauds in cryptocurrency history prove just the opposite
The cryptocurrency scam
Until recently, blockchain was synonymous with invulnerability, and although it continues to be one of the best-armored digital systems, it is not invincible. Complexity in transaction verification processes does not exclude the possibility of an attack. Cryptocurrency exchange carries risks that you may not be aware of, but there are also ways to avoid them.
In an article published by MIT debunks the widely held myth about the foolproof security of blockchain. According to this source, the unique qualities of blockchain lead to unique criminal maneuvers. So that promotion of the anti-hacking platform is already in disuse.
How do these frauds occur? Initially, we should remember that the blockchain is configured in a way that makes it impossible to reverse transactions. This feature leaves the user unprotected against an attack, because, if he discovers the theft after having transferred, there is no protocol to reclaim funds.
Consequently, this network is convenient for thieves who manage to obtain a successful transaction by deception when buying cryptocurrencies. But not only vulnerability issues may arise in the exchange but in the blockchain itself.
Following the information provided by MIT, the more complex the blockchain is, the higher the chances of incurring a mathematical error. This would be the perfect opportunity for malicious purposes. A small cryptographic flaw could put the entire chain at risk.
There are secure exchange platforms such as Changelly, which protect you when you convert ethereum to bitcoin with sophisticated logarithms and exchange security systems. However, there are known cases of fraud in the world.
Great cryptocurrency scams
There have been several episodes of cryptocurrency scams and thefts that have become very famous. These are some emblematic cases of cryptocurrency scams:
Ethereum classic scam
Between January 5 and 7, 2019, one of the biggest scams against Ethereum Classic took place. The technique used by the attacker is known as 51%. This consists of inserting a miner with great computational power that sends payments to other users and then creating a parallel version where such payments never existed. Such an alternative version is called a fork.
Cryptocurrency queen scam.
That’s the nickname Ruja Ignatova received after perpetrating a $4 billion fraud. She did it through a social engineering strategy that was all about convincing people to invest in OneCoin by promising it would outperform Bitcoin.
Africrypt platform scam.
In 2019, two 18- and 20-year-olds, Ameer and Raees Cajee, created a cryptocurrency platform they called Africrypt. In April of that same year, users were unable to access their accounts. This coincided with Bitcoin’s rise to record highs to US$63,226 per unit. It is estimated that its founders stole close to US$4 billion.
Solutions on cryptocurrency scams.
A new corporation called AnChain.ai has focused its efforts on changing the general description of cryptocurrency by strengthening its security. For this purpose it managed to develop a resource with artificial intelligence that detects suspicious actions. This tool has the ability to scan the code of a contract to diagnose vulnerabilities.
Chain Security is another company that works on the design of grounded auditing services, which they have made known as formal verification. The purpose is to make sure that the code of a smart contract will actually perform what was stipulated in the contract.
One recommendation that can protect the user from fraud is to verify the address of the wallet or platform. It is not a good option to click on links from unknown banks or wallets. Before transferring funds, it is best to check the recipient’s characters, amount and tax.
It has been proven that having a high quality antivirus program on your computer decreases the likelihood of theft due to malware infiltration. If you combine these tips with the use of a reliable platform such as Changelly you will be able to execute reliable transfers.
In summary, blockchain technology remains one of the most reliable systems available to date. Even so, it is wrong to claim that its design is infallible against online attacks.
According to specialists in the field, this type of behavior may continue to appear more frequently. At the same time, however, initiatives have emerged within the technology sector that promise to make the resources used to operate with cryptocurrencies more sophisticated.
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