Most of the cryptocurrency exchanges are constantly working on increasing the security for their clients. In spite of that, there are instances of hackers or cybersecurity criminals trying to steal the digital tokens from the accounts of the cryptocurrency holders.
Up until now, investors have poured in billions of dollars in cryptocurrencies. Moreover, with the increasing prices of cryptocurrencies in the last couple of years, the holdings are further inflated as well. Due to this, the cryptocurrency Holdings has become a lucrative target for most of the hackers.
According to Tom Robinson, co-founder of Elliptic, the hackers are using every trick in the book in order to get the cryptocurrency holders to get tricked into sending the cryptocurrencies. They are trying methods like phishing attacks as well as other tricks in the book in order to get their cryptocurrency Holdings. As a result, the amount of money which users are losing in cryptocurrencies is pretty significant. Elliptic is a company which is keeping track of the hacking attempts which are being done by the hackers. It is also providing this data to most of the cryptocurrency exchanges in the United States as well as Europe.
Targeting the less sophisticated investors
Not each and every investor who is investing in Bitcoin is sophisticated. That is why the hackers are particularly targeting the investors who do not take care of security. Since they are trying to the older as well as the newer tricks, most of the investors are not able to protect their cryptocurrency Holdings. The problem is that once the cryptocurrency is gone, there is hardly any way to track it back. Due to this very reason and minimalistic recovery chances, it is becoming difficult for most of the cryptocurrency investors to get their money back.
The phishing attacks are on the rise as well as most of the investors are not savvy enough to check the details of the website of the mobile application before logging into their accounts. Moreover, these attacks are coordinated with social media messages as well. As a result, the users are trusting the fake messages. Once they are able to login into the fake website or the mobile application, they lose their cryptocurrency Holdings. This has been a key problem for most of the cryptocurrency investors as well.
It remains to be seen whether there is a robust mechanism in the future to help the users avoid such kind of hacking attempts. Up until now, it seems like the hacking attempts are here to stay.