- Privacy tokens appear to be the latest target of cybercriminals
- Two privacy crypto (Monero and Zcash) projects have been targeted by hackers
- Privacy networks will eventually become traceable
Cryptocurrency News Today – in recent weeks, bad actors have targeted privacy crypto projects. Two projects in focus include Monero and Zcash. Such incidents suggest that cybercriminals have become more sophisticated in their attacks. Despite this development, bad actors still use less sophisticated methods to successfully attack crypto projects.
The recent security breach in Monero emerged after cybercriminals created a fake Mymonero android application URL. Monero developers claimed that this was the work of the scammers who have consistently targeted Myetherwallet in the last 4 years. Meanwhile, Zcash also appears to have been the target of hackers after bad actors created a bogus Twitter account. According to CEO and Founder of Mana Security, Tim Ismilyaev, “the account publishes information on fake distributions of the digital asset and even contains ETH addresses for fundraising.
Why are Privacy Coins Targeted by Hackers?
According to Ismilyaev, privacy coins are getting targeted because for criminals, they offer a more logical option. He blames Google Play store for not “manually verifying app updates as Apple Store does. The Google Play Store contains countless counterfeit apps. It typically costs just $25 “for a hacker to create a fake wallet after spending a few days to make the app.
Attackers target users who don’t want to follow additional steps to verify wallets that come from multiple sources. Ismilyaev believes that before installing new crypto wallets it would be ideal to look for references about the wallet online. New users can also protect themselves by triple-checking wallets. According to Ismilyaev, developers post recommended wallets. Users can also find reviews of wallets online. All good wallets have youtube/blog reviews that were posted in 2018/2019.
Privacy Network’s Will Eventually Become Traceable
As law enforcement and cybersecurity agencies make moves in Blockchain analysis and tracing, there’s a good chance that the transactions on the so-called privacy-focused offerings will become traceable. Recently, Ciphertrace said it now has the tools to trace transactions on Monero. Although many experts doubt these claims. In any case, Ismilyaev has urged buyers not to take any chances when buying privacy-focused coins like Monero. Here is how he put it:
“Buy digital assets in batches to minimize the chances of purchasing stolen funds. Reduce the first acquisition of crypto to $10 and withdraw it at any exchange. If it works optimally, buy the remainder of the tokens.”
Despite Google Play’s failure to flag fake applications, the executive believes that users can check an app’s installations, reviews, and ratings, for guidance. Ismaliyaev argues that:
“It is ideal to install applications with 100k+ installation, four-star+ ratings, and 1000+ reviews.”