The United States of America is home to millions of investors and traders dealing in cryptocurrency. Owing to this US is one of the cryptocurrency accepted countries. Mastercard and Bank of New York Mellon boosted this acceptance by allowing users to transact in certain cryptocurrencies. How can we not mention Elon Musk’s decision to accept Bitcoin as a mode of payment for Tesla?
Further, companies such as Subway, Microsoft Store, etc., have started accepting payments in Bitcoin.
But recently, The US Federal Bureau of Investigation (FBI) issued an industry-wide warning against upcoming attacks on cryptocurrency exchanges and holders this week. This was achieved via TLP protocol which is designed to distribute the desired information with certain groups. It received the Green designation, meaning the FBI allows peers and partner organizations in the crypto community to share this information.
In a recent interview, the FBI declared that some groups actively monitor the vulnerabilities of such companies to exploit them at the right time. These groups employ various techniques to achieve their goals, such as sim swapping, tech support fraud, and account stealing.
The FBI also shared some recommendations to help these institutions keep their holding safe: keeping watch on incoming mails and monitor accounts for unusual movements. The FBI advises cryptocurrency holders always to use two-factor authentication and be aware of the information they s
hare on social media.
However, it is very difficult to prevent sim swap attacks because they are relatively easy to complete. The attacker needs to get hold of the telephone number of the victim, which in all fairness, is readily available in the age of modern technology.
This allows the attacker to gain access to the victim’s account even if there exists two-factor authentication. This is not something new; a few high-profile sim swapping cases have been in the limelight before, such as Michael Terpin, a blockchain investor, sued AT&T for $200 million in damages for negligence after suffering a sin swap attack back in 2020. A judge ultimately dismissed the lawsuit, but it put sim swapping and cryptocurrencies in the public eye.
Hence owing to all these frauds, it becomes the responsibility of the institution or investor to be extra careful while maintaining their portfolio and sharing details with the third party regarding the same.
We live in the age of the digital era, and it’s one of the cons we have to beware of.