Binance Comments on the Dusting Attack and Recommends Steps to Prevent It

According to reports, after less than one week following the Litecoin halving event, LTC wallet users experienced a dusting attack. This large-scale dusting attack may have implications for the digital currency in the long run. Now, Binance exchange has also taken time to explain what the dusting attack is and listed several ways for users to protect themselves from such attacks.

How Binance Proceeded Following the Dusting Attack

As written above during the weekend, reports started to emerge concerning Litecoin. The report says that LTC wallets were under siege. This attack is believed to be a new type of cyber-attack targeting crypto. It has been referred to as the “dusting.” The Binance team was among the first group to alert LTC wallet users to the siege. In addition to that, the exchange drew attention to the ways that cybercriminals are using to hit Litecoin user wallets.

The Siege on Litecoin Wallets Began on August 9

Binance said that a “large-scale” dusting attack was in play and is targeting LTC users. The siege began on August 9. In addition to giving users a link that highlights an example transaction of what the attacks look like, Binance referred to dusting attacks as new. Per the report issued by Binance on the matter, dusting attacks is the most recent “malicious” form of cyber-attacks. To carry out their agenda, hackers typically attempt to get access to user crypto funds. The scheme involves sending small amounts of tokens to user personal crypto wallets.

After this, the transactional activity of the crypto wallets is then tracked by attackers. The cybercriminals will perform several analyses on a number of addresses to identify either the individual or organization behind the crypto wallet. ‘Dust’ has reportedly been used in past times to identify minuscule sums of crypto. It has also been a term applied to exchanges precisely to rounded-off amounts of tokens after transactions. However, scammers have now discovered a way to navigate the crypto micro-transaction capability of tokens like Litecoin to access user wallets.

LTC Wallets are Being Targeted in the Dusting Attack

Binance claims the cyber attackers are relying on the ignorance of digital currency users towards the dust attack to carry out their agenda. Binance reports:

Scammers have recently realized that many crypto users don’t really pay attention to the tiny sums showing in their crypto wallets. Which is why they started “dusting” many user addresses by sending small Satoshis to these users. The goal of the scheme is to link all dusted addresses and user wallets to their respective firms. If scammers achieve success, they can use this data against their targets, whether it is through cyber-extortion threats or phishing attacks.”

While these dusting attacks were initially familiar to Bitcoin users, hackers have now broadened their scope. They have now incorporated other digital currencies like Litecoin. The Litecoin market has reportedly remained unchanged despite the large-scale cyberattacks that have hit LTC wallets in recent days. While crypto prices seem to be going through a minor correction following their rally in the past week, the price of Litecoin has not really suffered despite the ongoing dusting cyber scheme against LTC wallets.

Brian Lubin is a Crypto News Reporter for Smartereum. He's well-known for his reports on the crypto markets.

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