The Bitcoin fever is a natural magnet for thieves, who come up with many ways to steal crypto. Bitcoin stealers target big companies and individual users with modest amounts in their crypto wallets.
Chainalysis recently revealed that $3.8 billion of stolen crypto assets were stolen in 2023, an increase of 15% compared to the previous year.
It would be best to understand the Bitcoin blockchain better and how to protect against stolen assets, cryptocurrency hacks, lost funds in crypto assets, or stolen assets in crypto days. We will inform you of any cryptocurrency hacks and cyber threats lurking.
Here’s a table summarizing the standard methods used by criminals to steal Bitcoin, along with a brief description of each:
| Rank | Method | Description |
|---|---|---|
| 1 | Cryptojacking | Using someone else’s computing resources to mine cryptocurrency without their consent. It is often hard to detect and can run for long periods. |
| 2 | Ransomware | Malware that encrypts the victim’s data and demands a ransom, usually in Bitcoin, to decrypt it. Targets both individuals and organizations. |
| 3 | Phishing | They use fake emails or websites to deceive individuals into revealing sensitive information like Bitcoin wallet credentials. |
| 4 | Ponzi and Pyramid Schemes | Investment scams promise high returns, relying on new investors’ funds to pay earlier investors. Often collapse, causing losses for late investors. |
| 5 | Fake Wallets and Exchanges | Creating fraudulent wallets or exchanges to steal users’ funds directly can be difficult. They can be difficult to distinguish from legitimate services. |
| 6 | Scams on P2P Exchanges | Occur on peer-to-peer platforms, where users may be deceived into transactions that result in fund loss, often due to chargebacks or fraudulent claims. |
| 7 | Private Keys Theft | Acquiring a user’s private keys allows thieves to access and transfer Bitcoin from the rightful owner’s wallet. |
| 8 | Wallet Vulnerability Exploitation | They are exploiting security flaws in Bitcoin wallets to steal funds, highlighting the importance of robust wallet security. |
| 9 | Fraudulent Investment Funds | Schemes posing as legitimate investment opportunities are designed to steal funds from investors. |
| 10 | Direct Exchange Attacks | They target crypto exchanges to steal user funds, exploiting the significant amounts of cryptocurrencies stored on these platforms. |
This table provides a concise overview of the various methods employed by cybercriminals to steal Bitcoin, emphasizing the need for vigilance and robust security measures to protect digital assets.
4 Common Ways Hackers Steal Сryptocurrency
Most crypto scams follow one blockchain and a familiar pattern of theft. Suppose you know these four common hack patterns for other crypto exchanges, crypto owners, crypto exchange, and crypto owners. In that case, you can better secure your crypto exchange’s hot wallet and funds stolen Bitcoin from hackers.
Cryptojacking
Nobody can tell the exact figures, but crypto-jacking might be the most popular crypto-stealing hacker attack scheme.
Recent insights from the SonicWall Mid-Year 2023 Cyber Threat Report reveal alarming trends in cryptocurrency hacks: In 2024, over 100 million cryptojacking cases were reported, a significant increase. But in the first half of 2023, these incidents shot up by 399%, reaching a total value of over 332 million hits.
How do you steal crypto using this malware? The criminals focus their efforts on stealing computing power to mine crypto. Cryptojackers can stealthily use someone else’s computer or server resources over long periods without anyone suspecting something is amiss.
According to a report from Palo Alto Networks, at least 5% of all Monero (XMR) had been mined this way by 2018. Aside from this coin, token, blockchain technology, and cryptocurrency, cryptojackers can mine Ethereum, Dogecoin, ZCash, Ravencoin, etc.
Bitcoin stealers don’t use cryptojacking malware because it takes special equipment to mine BTC rather than personal computers.
Installing ad blockers and efficient cryptocurrency mining extensions on your browser is one recommended way to avoid being targeted by cryptojacking attacks.
What do you do when you are cryptojacked? Disable Javascript on your browser so malicious scripts cannot run. Or you can uninstall and reinstall your browser.
Info Stealers
This type of malware allows terrible actors to collect credentials (such as crypto wallet details) stored on their web browser. Most info stealers cost around $100-$300 and can be used even by amateurs.
As a rule, they use the Malware-as-a-Service business model. They have their own C2 infrastructure, a web panel, and cryptos whose purpose is encrypting the file with malware to make attackers escape access to the essential security layers.
The data obtained using such software is usually sold to Bitcoin stealers on darknet forums or Telegram channels.
A famous info stealer is еру, the so-called crew. It allows users to grab and exfiltrate information from hot wallets as they provide easier access to crypto keys for making transactions.
You can mitigate info theft in two ways:
- First, you can switch from a software wallet to a hardware wallet.
- Second, do not auto-save the details of your wallet on your browser. Although it can be stressful, manually inputting your details at every instance is safer.
Social Engineering Schemes
Bitcoin stealers can use various social engineering techniques to weave webs of lies, leveraging common patterns of human behavior and emotional reactions in specific life scenarios.
They can send malicious links via email, pose as government agency officials, send a potential victim to fake websites, do cryptocurrency exchange hacks, and even trick some crypto wallet owners into giving their cryptocurrency wallet and away their cryptocurrency wallet and recovery codes.
One of the most vivid examples of social engineering is the Ponzi scheme. With so many scandals and revelations associated with similar scams, it should have been long forgotten and buried, but it’s still evergreen.
A recent story: PlusToken, an Asian crypto wallet service that encouraged over 3 million people to purchase the fake company’s token using BTC or ETH.
In addition, romance scams are among the most common social engineering scams. Romance scams kick off with fraud, appealing to the sexual orientation of the victim.
Usually, they would promise a sexual service or file in return for the Bitcoin that the victim sends. There are reports that scammers have stolen around $1.5 million worth of BTC from Tinder and Bumble.
Reading about multiple social engineering scams can massage your brain into mush. You can’t get prepared for all of them, but you need to know how to protect crypto from fraudsters of this kind.
Just a few rules to follow:
- Never give out your crypto recovery phrase to anyone
- Never install apps from untrusted sources
- Don’t follow links in emails from unknown people
- Be generally smart
Crypto Exchange Hack
Centralized exchanges have a friendlier and more secure gateway for access to crypto and Bitcoin. As a result, many people prefer to buy crypto exchange from, sell, transfer, or other crypto owners keep their money and Bitcoins on centralized exchanges.
However, the users need complete autonomy over their private keys for blockchain accounts with a centralized cryptocurrency exchange. This is extremely difficult because they keep their customers’ private keys on one blockchain.
Hackers target to hack exchanges to access this array of private keys or the private key of private keys stolen funds used. Once hackers access the private key or private key of private keys stolen crypto used, the crypto of such users, including their Bitcoin, is gone.
For instance, the 2023 security breach of the Poloniex exchange is a notable example of cryptocurrency exchange hacks, and exchange hacks are almost becoming exchange hacks themselves.
During this hack, attackers exploited system vulnerabilities, stealing an estimated $126 million in stolen funds in digital assets alone. The funds stolen in digital assets also included significant amounts of Ethereum (ETH), TRON (TRX), and Bitcoin (BTC).
We recommend not putting all your funds in a cold wallet or centralized exchange to protect funds stored in Bitcoin from such a significant threat of an attack. It would be best to transfer and use other exchange’ hot wallets or get your funds in a secure cold wallet.
In addition, ensure that any other cryptocurrency exchange’s hot wallet you use has undergone penetration testing and smart contract auditing.
How To Protect Crypto From Hackers
Keeping your crypto in cold wallets would be a good idea – they are less likely to be compromised than hot wallets. However, it might not be enough for certain types of threats.
Verify your project’s security with an intelligent contract audit
Mitigate weaknesses in malicious code of your smart contracts and other smart contracts, and improve its functionality with double line-to-line malicious code, analysis, and a separate review by a lead auditor.
So we recommend adhering to the following points to protect against intruders:
- Always Check Email Domains: In addition to checking the domain, learn to notice minor errors or changed letters in email addresses that might indicate phishing attempts. Use email verification tools if necessary.
- Advanced Anti-Phishing: If a platform offers an Anti-Phishing code feature, set it up and keep it updated. Also, learn about the latest phishing techniques to stay ahead of scammers.
- Deposit Only on Reputable Exchanges: Check the exchange ratings on the following services: CER.live, Coingecko, Coinmarketcap, Cryptocompare, etc.
- IP Allowlists and Login Alerts: If a service offers the option to set up a login IP allowlist, use it. Also, enable login alerts to be notified of any unauthorized attempts to access your account.
- Crypto Wallets Research: Before downloading a wallet, look into its creators and past work, even if it’s listed in your app store. See what people say about them and if they’ve had any security problems.
- API Key Restrictions: When setting IP restrictions for API keys, consider setting up additional rules, such as withdrawal limits or allowing access only to specific functions.
- Document Source Verification: Ensure that any downloaded document is from a verified and secure source. Preferably, use direct links from official websites or trusted platforms.
- Regular Security Updates: When updating your operating system for security, consider updating your network security settings and any other related software that interacts with your crypto.
- Official Sources for Apps: Download applications and updates only from official websites. Avoid third-party providers and double-check URLs to ensure you’re on the official site.
- DYOR: For new crypto projects, research the team and investors, and also check for independent audits, the project’s code, and what people say about it on Reddit or crypto forums.
To improve your understanding of navigating the crypto project ecosystem, check out our DYOR 101 course.
Is it possible to hack Bitcoin?
It is tough to hack Bitcoin as a whole blockchain technology. However, hacking the Bitcoin blockchain, individual transactions, wallets, bitcoins, transactions, wallets, and the network of wallets centralized exchanges that host Bitcoin transactions and wallets is possible.
How do thieves steal crypto?
Thieves on how to steal bitcoin crypto through various means of attack, such as crypto exchange hacks, social engineering attack schemes, cryptojacking attacks, and info theft attacks.
How to hack crypto wallets?
Hackers often look for vulnerabilities in crypto wallets or wallet software and then exploit or trick users into revealing private keys, passwords, or wallet passwords. Also, thieves use SIM Swapping, an exploit that allows them to trick users, take mobile devices, and bypass two-factor authentication on mobile devices.
Which cryptocurrency has been hacked?
Examples of cryptocurrencies that have been hacked include LUNA and SOL.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
