Learn some of the most effective strategies to protect your crypto and recognize common crypto security risks, like phishing and malware attacks.

As cryptocurrency adoption continues to grow, it's important to recognize and avoid some of the most common crypto security risks. Because most blockchain transactions are decentralized, irreversible, and anonymous, this makes crypto an attractive vehicle for value transfers, but also a potential target for bad actors.

In this article, we’ll take a look at the types of fraudulent activity you should be aware of, including common types of phishing scams and malware attacks.

What is crypto security?

For many of the most popular cryptocurrencies, transactions are largely decentralized, irreversible, and anonymous. While this gives you unprecedented freedom, it also leaves you vulnerable to malicious schemes from bad actors. It’s therefore important to stay vigilant and avail yourself of crypto security measures in order to protect your crypto.

At its most basic level, crypto security is about using common sense. If you’re receiving a cold call about an opportunity or you’re asked to give away personal information, it’s probably a scam. If the opportunity is time sensitive and you’re being strong-armed into spending your money, it’s probably a scam. And if you’re promised high returns with little risk or the opportunity seems a little too good to be true, it’s probably just that: a scam.

Common crypto security risks

Many of the most common crypto security risks fall into one of two categories: phishing or malware attacks. These types of cybercrimes are as old as the internet — and come in many forms, ranging from sophisticated attempts that are highly targeted and “bespoke” to you, to unconvincing attempts that you may be able to easily identify.

Phishing Attacks

There are many different types of phishing attacks, but at its core, these attacks consist of emails, messages, or calls from entities that attempt to extract personal information from you, such as your login credentials or seed phrases.

Examples of common phishing attacks include fake job offers from established companies or phone calls from someone impersonating your boss or loved one. Other types of phishing attacks include the following:

• Pig butchering - An attack where the scammer presents you with an enticing opportunity, gets you to make an initial deposit or purchase, and lures you into sending more funds, usually on the basis of falsified financial statements or a series of small but encouraging amounts of positive returns.
• Romance schemes - An attack where someone, typically posing as a potential love interest, gains your trust and then later asks you to purchase crypto as a way to get closer to one another.
• Giveaway scams - These scams often involve someone posing as a platform founder, celebrity, or influencer and offering rewards to anyone who sends money or provides financial information to them.

For even more types of phishing attacks and scams, learn How to Spot Common Crypto Scams and Stay Safe Online.

Malware attacks

Malware attacks are another common threat to crypto security. Malware, once downloaded and/or run, enables a hacker to do malicious actions with your devices, which includes but is not limited to: emptying your wallet, installing a keylogger to scrape your personal information, or stealing your computer’s processing power in order to mine cryptocurrency without your knowledge, an activity known as cryptojacking.

Malware can be stored on your computer or in the browser of an infected site, and it’s most commonly downloaded from untrustworthy or compromised websites, apps, and browser extensions. Because the malware is coded to remain hidden, it can be difficult to detect. However, if you notice that your computing device is behaving oddly, running more slowly, or using its cooling fan more frequently, your crypto security may be in jeopardy.

How to keep your cryptocurrency secure

To protect your crypto, it’s important to take safety precautions wherever possible. Continue reading for some general security tips that you can use to stay safe online, or review our article on 5 Ways To Keep Your Crypto Secure.

As a start, be sure to set strong passwords of at least 16 characters and try to avoid reusing the same one for different accounts. If you have trouble generating or remembering complex passwords, there are password managers that can help.

Multi-factor authentication is also a great way to maintain crypto security. Hardware security keys, like Yubico’s YubiKey, are some of the strongest as they allow for physical two-factor authentication. Apps like Duo Security or Google Authenticator are the next best option and preferable to text message-based verification. However, if the latter is your only choice, then be sure to require SMS authentication with each login. That’ll give you an extra layer of protection in case your password’s been stolen.

Ultimately, the best way to protect your crypto is through self-education. Keep tabs on the latest security developments and best practices and avoid the common tricks that hackers use to steal information. Don’t give out any account credentials or banking information over the phone or through email or social media. Verify any URL that’s sent to you before logging into your account. And know that if something sounds too good to be true — it probably is.

Conclusion

While cryptocurrency platforms like Binance.US strive to offer helpful security features to safeguard your crypto journey, it’s still important to recognize the most common types of security risks. While some are easy to dismiss, others are harder to detect and may require extra vigilance.

Create your free Binance.US account to explore the world of crypto with confidence. To learn more about how to help protect your account, visit Binance.US’ Safety and Security Tips.

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Legal Disclaimer: This material has been prepared for general informational purposes only and should NOT be: (1) considered an individualized recommendation or advice; and (2) relied upon for any investment activities. All information is provided on an as-is basis and is subject to change without notice, we make no representation or warranty of any kind, express or implied, regarding the accuracy, validity, reliability, availability or completeness of any such information. Binance.US does NOT provide investment, legal, or tax advice in any manner or form. The ownership of any investment decision(s) exclusively vests with you after analyzing all possible risk factors and by exercising your own independent discretion. Binance.US shall not be liable for any consequences thereof.