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FBI warns crypto users of possible security threats

The Federal Bureau of Investigation (FBI) has issued a warning to digital currency exchanges and crypto traders to anticipate possible threats in the coming weeks. This is due to groups that are reportedly tracking vulnerabilities in the system for opportunities to strike at the right time. 

Reports include threats in account breaching, sim swapping, and taking advantage of tech staff. If successful, these threats have the ability to drain crypto accounts in an instant. In most cases, the digital assets can no longer be retrieved. 

Identity theft is also a common operation used by cybercriminals. These hackers collate personal information on a specific person and use that information against them to commit fraud. Their accounts and digital assets will be accessed and drained if successful. 

The first report was published by Bleeping Computer, a website covering technology news and offering free computer help. It published different protocols suggested by the FBI to avert the situation. This includes checking for messages or emails coming from spoofed addresses and enabling 2-factor authentication for all individual accounts. 

Crypto holders were also advised to watch the content they post on social media. It is considered a source and a tool for hackers to acquire information and commit identity theft. 

COO for Risk Monitoring at Solidus Labs, Chen Arad,  iscussed the inner workings of how these cybercriminals work to access crypto platforms and accounts. ‘Once a crypto account is hacked, attackers often use the unique structure, trading and economics of crypto markets to withdraw the funds and make other gains.’

He continued, ‘If hackers can’t immediately withdraw the funds, they may try to get them out of the account by trading valuable cryptos for less valuable altcoins in another account the hacker owns. Hacked accounts can also be used for market manipulation like wash trading or spoofing.’

The warning was given a green light for the TLP or Traffic Light Protocol. This means that the FBI allows all concerned parties, in this case, the currency exchanges and crypto holders to share the information with other members of the community. 

Moreover, the FBI is urging crypto exchange platforms to take the necessary security measures and be on the lookout for potential holes in the system. 

According to Forbes, these activities were brought about by the rise of the cryptocurrency industry this year. Valued at around $1 trillion, the crypto market has attracted countless cyber-criminals who want to take advantage of vulnerable traders and exchanges online. 

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