The new gold rush: A look inside cryptocurrency fraud

Cybercriminals are flooding to the new world of cryptocurrencies looking to exploit the boom in interest and adoption of these electronic currencies, according to Digital Shadows. This new gold rush is creating a new frontier for professional cybercriminals moving away from less profitable techniques and exploits to make money on the back of the huge interest in these digital currencies.

With over 1,400 cryptocurrencies in circulation, and new alternative coins – “altcoins” – emerging every week, cybercriminals have developed several schemes to defraud those looking to profit from the growth in cryptocurrencies. The most common methods include crypto jacking, account takeovers, mining fraud and scams against initial coin offerings (ICOs).

“Cybercrminals follow the money and right now they see in the unregulated and largely unsecure world of digital currencies a huge opportunity to target people, businesses and exchanges and make money quickly and easily,” said Rick Holland, VP Strategy, Digital Shadows. “In many ways its like the gold rush of the 1840s as people flood to the opportunity cryptocurrencies present and are preyed on by criminals and the unscrupulous.”

Read more about the rise in cryptocurrency fraud that is prompted by the new “gold rush” on Help Net Security.

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