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Bitcoin Hacks, Fraud and Scams: How to Protect Yourself?

MNabilAli

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Bitcoin Hacks, Fraud and Scams: How to Protect Yourself?

Bitcoin, the world’s first and most widely recognized cryptocurrency, has revolutionized the way we think about and use money. It has also, unfortunately, opened the door to a new type of crime: Bitcoin hacking, fraud and scams.

If you own bitcoin, or are thinking about buying some, it’s important to be aware of the various scams and frauds that can target you. Here are some tips to help you protect yourself:

Don’t fall for phishing attacks:

Scammers will often send fake emails or texts claiming to be from a legitimate bitcoin exchange or wallet service, asking you to click on a link and enter your login details. Don’t fall for it! If you receive an unsolicited message that seems suspicious, do not click on any links or enter your login information. Instead, go directly to the website of the exchange or wallet service in question and log in from there.

Use a reputable exchange:

If you’re buying bitcoin, be sure to use a reputable exchange. Look for an exchange that has a good reputation, a long track record, and a user-friendly interface. Avoid any exchange that seems shady or unprofessional.

Avoid Telegram scams:

Unfortunately, Telegram is full of fake initial coin offering, scam projects, Ponzi schemes, fake subscriptions to paid dump & dump groups ..etc. it is important to be cautious when interacting with unknown individuals or groups on the platform. Do not click on links or enter your personal information unless you are certain that the request is legitimate.

Be aware of exit scams:

Do not store your cryptocurrency in online crypto exchanges. Online Exchanges are not safe for storing cryptocurrencies. If you keep your private keys in a safe place, your coins can’t be stolen when an exchange is compromised. We have covered some exit scams before like: ADAX, Claymore and NovaChain. And always remember, Not Your Keys, Not Your Coins. It’s that simple.

Use a hardware wallet:

A hardware wallet is a special type of device that stores your bitcoin offline, making it much harder for hackers to steal your funds. If you own a significant amount of bitcoin, it’s a good idea to invest in a hardware wallet to keep your funds safe.

Don’t share your private keys:

Your private keys are like the passwords to your bitcoin and your cryptocurrency wallets. Keep them secret and secure, and never share them with anyone.

Be cautious of “free” bitcoin offers: If something seems too good to be true, it probably is. Be wary of any offer that claims to give you free bitcoin. These types of offers are often scams designed to steal your personal information or trick you into investing in a fake cryptocurrency.

Don’t fall for Bitcoin investment schemes:

These scams involve individuals being duped into investing in fake or fraudulent investment opportunities, resulting in the loss of their money. Always be cautious of “too good to be true” offers.

Avoid Rug pull scams:

Rug pull scams are a type of cryptocurrency scam in which a group creates a fake cryptocurrency and promotes it as a promising investment opportunity. The group will often use social media, Telegram, or other online platforms to promote the coin and get people to invest in it. Once the group has raised a significant amount of money, they will “pull the rug” out from under the investment by disappearing and leaving the investors with worthless coins. This type of scam is called a rug pull because it is similar to the action of pulling a rug out from under someone, causing them to fall. Rug pull scams are particularly insidious because they can be difficult to detect, and people who fall victim to them may lose significant amounts of money. It is important to be cautious when considering investments in cryptocurrencies and to thoroughly research any coin or project before investing.

Enable two-factor authentication:

Two-factor authentication (2FA) is an extra layer of security that requires you to enter a code sent to your phone or email in addition to your password when logging into your account. This helps to prevent unauthorized access to your account even if someone else gets hold of your password.

Use strong and unique passwords:

Make sure to use strong, unique passwords for all of your accounts, and avoid using the same password for multiple accounts. It would be a good idea to use a password manager that can help you generate and store strong, unique passwords for all of your accounts.

Enable transaction notifications:

Some exchanges and wallets offer the option to receive notifications for all transactions. This can help you stay on top of your account activity and be aware of any unauthorized transactions.

Use a reputable antivirus software:

Installing antivirus software can help protect your computer from viruses and other malware that could compromise your bitcoin wallet or steal your personal information.

Enable account recovery options:

Many exchanges and wallets offer account recovery options, such as the ability to reset your password or access your account through a secondary email address. Enabling these options can help you regain access to your account in the event that you lose your login credentials.

Use a multi-sig wallet:

A multi-sig wallet requires multiple signatures, or approvals, before a transaction can be made. This can help protect your bitcoin from being stolen in the event that one of your signatures is compromised.

And finally, use a virtual private network (VPN):

A VPN can help protect your online activity and keep your connection secure when using the internet. This can be especially important when accessing your bitcoin wallet or making transactions.

    By following these tips, you can protect yourself from bitcoin fraud and scams. Remember to always be vigilant, and never share your personal information or login details with anyone.

    Daily cryptocurrency trader, miner, technology enthusiast and a full time IT and security consultant. If you have any questions or comments please feel free to email him at [email protected]

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    N.J. Man Allegedly Paid 40 BTC to Have a 14-year-old Killed

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    John Michael Musbach, a 31-year-old man from Haddonfield, NJ, has been charged with hiring a hitman to kill a 14-year-old and paying 40 Bitcoin (equivalent to $20,000 at the time) for the crime. Musbach has plead guilty to using the internet for the murder in a federal court in Camden. He faces a maximum of 10 years in prison.

    Musbach exchanged explicit photos and videos with the 13-year-old victim from New York in 2015, which was discovered by the victim’s parents and reported to the police. He was later arrested in 2016 on child pornography charges and had a search warrant conducted on his residence in Galloway, NJ.

    According to the department of justice, Musbach wanted the victim killed to prevent them from testifying against him in the ongoing criminal case.

    The charge of use of interstate commerce facilities in the commission of murder-for-hire is punishable by a maximum potential penalty of 10 years in prison and a fine of the greater of $250,000

    the release said

    Between May 7-20, 2016, John Michael Musbach communicated with the administrator of a murder-for-hire website on the dark web net that claimed to offer contract killings for payment in cryptocurrency. Musbach asked if a 14-year-old was a suitable target and, after being told it was possible, paid 40 Bitcoin (equivalent to $20,000 at the time) for the hit. He repeatedly checked on the status of the hit and even asked for an additional $5,000 to secure it. When asked for more money, Musbach tried to cancel the hit and request a refund, only to find out that the website was a scam and the administrator threatened to reveal his information to law enforcement.

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    Man Charged in $110 Million Cryptocurrency Scheme

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    Avraham Eisenberg, 27, from Puerto is accused of committing a $110 million cryptocurrency fraud according to court documents. He allegedly manipulated prices of perpetual futures contracts on Mango Markets, which allowed him to steal cryptocurrency from the exchange and its customers. He was arrested in San Juan, Puerto Rico on December 26, 2022 and is currently in detention, per a criminal complaint.

    According to court documents. He allegedly manipulated prices of perpetual futures contracts on Mango Markets, which allowed him to steal cryptocurrency from the exchange and its customers.

    Exploiting decentralized finance platforms is the new frontier of old school financial crimes in which criminals abuse emerging technologies for their own personal gain. With this prosecution, the Criminal Division is sending the message that no matter the mechanism used to commit market manipulation and fraud, we will work to hold those responsible to account.

    said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division

    Mango Markets is a decentralized cryptocurrency exchange that offers various services to investors, including purchasing, borrowing and trading cryptocurrencies and cryptocurrency-based financial products. It is run by the Mango Decentralized Autonomous Organization (Mango DAO), which operates with its own cryptocurrency token, MNGO. Holding MNGO tokens grants investors the right to vote on modifications to the Mango Markets platform and decisions regarding the governance of the Mango DAO.

    As alleged, Avraham Eisenberg manipulated the Mango Markets cryptocurrency exchange in order to obtain over $100 million in illicit profits for himself, Through his scheme, Eisenberg left others holding the bag. Market manipulation is illegal in all of its forms, and this office is committed to prosecuting such schemes wherever they occur – including the cryptocurrency markets

    said U.S. Attorney Damian Williams for the Southern District of New York

    The FBI is leading an investigation into the matter, with support from Homeland Security Investigations and IRS Criminal Investigation. Meanwhile, the Commodity Futures Trading Commission and Securities and Exchange Commission have launched separate civil proceedings.

    The case is being prosecuted by the National Cryptocurrency Enforcement Team’s Trial Attorney Jessica Peck, along with Assistant U.S. Attorneys Thomas Burnett and Noah Solowiejczyk of the Southern District of New York.

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    The Top 10 Most Popular Cryptocurrencies in 2023

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    Cryptocurrencies have became a popular subject in the recent years. In this post, we will take a look at the top 10 most popular cryptocurrencies by market capitalization, as of February 2023.

    Bitcoin

    Bitcoin (BTC) – Bitcoin is the original cryptocurrency and still the largest by market cap. It was created in 2009 by an unknown individual or group going by the name of Satoshi Nakamoto. Bitcoin is decentralized and operates on a blockchain network.

    Ethereum

    Ethereum (ETH) – Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (dApps). It was created by Vitalik Buterin in 2015 and is currently the second-largest cryptocurrency by market cap.

    Binance Coin

    Binance Coin (BNB) – Binance Coin is the native token of the Binance exchange, one of the largest cryptocurrency exchanges in the world. It was created in 2017 and is used to pay for trading fees on the Binance platform.

    Dogecoin

    Dogecoin (DOGE) – Dogecoin was created as a joke in 2013, but it has since become one of the most popular cryptocurrencies in the world. It was initially created as a parody of Bitcoin but has gained a significant following in recent years.

    Cardano

    Cardano (ADA) – Cardano is a blockchain platform that aims to create a more secure and sustainable ecosystem for the development of decentralized applications. It was created by Charles Hoskinson in 2015.

    XRP

    XRP (XRP) – XRP is the native token of the Ripple network, a decentralized payment protocol that enables fast, low-cost international money transfers. It was created by Ripple Labs in 2012.

    Tether

    Tether (USDT) – Tether is a stablecoin that is pegged to the value of the US dollar. It is often used as a safe haven asset during times of market volatility.

    Polkadot

    Polkadot (DOT) – Polkadot is a multi-chain network that aims to connect different blockchain ecosystems together. It was created by Gavin Wood in 2016 and is currently the eighth-largest cryptocurrency by market cap.

    Uniswap

    Uniswap (UNI) – Uniswap is a decentralized exchange protocol built on the Ethereum blockchain. It allows users to trade cryptocurrencies in a trustless, decentralized manner.

    Solana

    Solana (SOL) – Solana is a high-performance blockchain platform that aims to provide fast, low-cost transactions for decentralized applications. It was created in 2017 and is currently the tenth-largest cryptocurrency by market cap.

    Conclusion

    These are just a few of the most popular cryptocurrencies that are currently available. Each one has its own unique features and uses, and the crypto market is constantly evolving, so it’s important to do your own research and stay informed. Keep in mind that past performance is not indicative of future results.

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