The emergence of cryptocurrencies, combined with the growing popularity of online banking, has resulted in an increase in cybercrime and identity fraud. According to a recent government press release, one area of special worry is the selling of compromised cryptocurrency accounts, which is currently flourishing. Coinbase has been a favorite target for hackers, with stolen verified accounts fetching up to $610 on the dark web.
For cybercriminals, the sale of stolen cryptocurrency accounts is a profitable industry, and the demand for them has only risen in recent years as more individuals invest in digital assets. Because cryptocurrencies are largely unregulated and decentralized, they are viewed as an appealing target for hackers looking to profit quickly. The temptation for hackers to steal cryptocurrency grows as the value of cryptocurrencies rises.
Recovery of Stolen Assets Is Difficult
Due to the anonymity of cryptocurrencies, finding and recovering stolen funds is difficult, leaving victims with few choices. Several attacks on cryptocurrency exchanges have occurred in the past, resulting in the loss of millions of dollars. Despite the fact that exchanges such as Coinbase have put in place many security measures to secure user accounts, determined hackers can still acquire access to them.
To reduce the risk of identity theft and hacking, users must be diligent about safeguarding their personal information online and using strong, unique passwords for each account. Two-factor authentication is another important method for protecting online accounts. Cryptocurrency users should take further measures, such as using cold wallets to keep their digital assets offline and not revealing their private keys or seed phrases to anybody.