The Spector of $2b in 2018 Cyber Crime Targeting Cryptocurrencies Threatens Market Adoption

Colleagues, according to CoinMarketCap the worldwide market capitalization for digital assets reached some $760b in December 2017 and currently hoover around $240b. Coindesk reports that the Japanese market lost $540m due to crypto crime in H1 2018. Globally, cyber security firm Carbon Black has confirmed $1.1b worth of cryptocurrencies were stolen in the same time period. The numbers are alarming, they continue to grow and represent the single largest threat to the market adoption of cryptocurrencies across the global economy. Conventional malware, fraudulent ICOs, attacks on crypto exchanges and crypto jacking which targets mining vendors and pools tops the list of cybercrime tactics. We offer two basic conclusions: First, it is highly likely that crypto theft will top $2b around the world in 2018. Second, the rise in cybercrime focused on digital assets heightens the concern of government regulators in the US and abroad that cryptocurrencies should not be categorized as legitimate “securities”. These factors are major barriers to adoption across the crypto ecosystem. We do believe that digital assets will take 2-3 years to cross the chasm from truly speculative investments to viable securities traded on market stock exchanges … foremost the US NASDAQ. Post a comment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/)  

Issuing fraudulent investments is the latest cyber security risk to the cryptocurrency ecosystem

Colleagues, the US Texas Securities Commission has issued cease and desist orders against three offshore entities suspected of issuing fraudulent cryptocurrency investment schemes. The orders target Ultimate Assets LLC, DigitalBank Ltd. and Coins Miner Investment Ltd.  All three entities purport to represent Coinbase, a prominent U.S. crypto exchange. The charges stem from crypto and forex trading services, false claims of meeting with the president of Ripple and soliciting funds to develop a claimed secure crypto wallet. Bottom line: The global crypto ecosystem is under siege from cyber criminals on all fronts. The three firms identified above a just the latest in a long list of bad actors targeting crypto investors, wallets, exchanges and underlying Blockchain technology. The most common motive across these nefarious actions is financial gain. We have and will continue to warn legitimate players in the crypto ecosystem to take major security and human factors measures to protect their business concerns. Send a comment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/)  

Can Fbot Help Prevent Crypto Mining Cyber Attacks by Destroying “com.ufo.miner” Malware?

Colleagues, we have extensively reported on the dramatic rise in crypto mining cyber-attacks in 2018 that have plagued the crypto ecosystem. Enter Fbot. Security researchers are unclear if Fbot is a friend or foe with regard to crypto mining. However, they have confirmed that Fbot is designed to propagate, scan and install itself over “com.ufo.miner“ malware which targets vulnerable browser software. According to NetLab 360, com.ufo.miner has its origins in monero ADB Miner Android-based software. At first glance, it would appear that Fbot might be a tool of unknown origin, which can reduce browser vulnerability to cyber-attacks. The key question is whether Fbot has an ulterior motive – that is to destroy com.ufo.miner and clear the path for another form of crypto mining malware to be installed in its place. Share a comment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/)  

Dark Web Security Vulnerabilities Lie at the Center of AlphaBay Crypto Fraud

Colleagues, we all know that the cryptocurrency ecosystem is a high-value target for cyber criminals worldwide. Nowhere is this more evident than the recent seizure of some $8.8m USD in cryptocurrencies along with another $14m of tangible assets from deceased cyber criminals Alexandre Cazes. Operating from Thailand Cazes amassed over 1,600 Bitcoins and another 8,300 Ethereum tokens from his illicit AlphaBay empire. A US Magistrate ordered this seizure with the aid of Thai officials. AlphaBay is believed to have its origins in the defunct dark web Silk Road platform. Bottom line: Crypto investors small and large are reminded that their assets are at from cybercrime and need to maintain the highest level of security. We recommend once again that investors and traders alike only engage with established and proven crypto exchanges, wallets, infrastructure providers and custodian service providers. Cyber criminals are relentless and crypto investors must be as well. Share your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/) 

Is a security breach of a defunct Mt. Gox crypto wallet responsible for the movement of $720m Bitcoin?

Colleagues, a Mt Gox wallet worth some $720 is the prime suspect in the movement of up to $720 Bitcoin since the Japanese exchange went out of business in 2014. To date some $100m has been transferred from this anonymous wallet to the Binance and Bitfinex exchanges. While some experts believe this infamous wallet is linked to the Dark Web’s Silk Road portal, most evidence points to the defunct Mt Gox exchange. Two fundamental questions arise. First, who (or whom) controls this wallet? Second, what is their motive? Numerous theories are floating across the global cryptosphere. Nonetheless, given the fact that Mt Gox was founded in 2010 – the very early days of cryptocurrencies – there is a high likelihood that the funds contained on this wallet were (and perhaps still are) being used for drug trafficking, payment for contraband and/or to evade trans-border trade sanctions. Our goal is to present facts not idle speculation; however, we are confident that the movement of these funds is due to some form of cybercrime. As such, we will add this topic to our crypto-cyber “watch list”. Share your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/)  

Will Samsung’s Blockchain Strengthen the Security for International Trade and Commerce?

Colleagues, with the goal of reducing shipping costs by 20% while increasing the security of imports and exports, South Korea’s Samsung Electronics is building a building a distributed ledger system (DLS) to track international trade. Samsung is partnering with the Samsung is partnering with Ktnet, the Ministry of Oceans and Fisheries , the Korea Customs Service, Ministry of Oceans and Fisheries, IBM Korea and Hyundai Merchant Marine. South Korea is surely an early adopter of cryptocurrency tokens, exchanges and mining. This initiative represents a major test as the country seeks to extend Blockchain technology to international trade via a private-public sector consortium. Simultaneously the Korea Internet and Security Agency (KISA) intends to increase the number of Blockchain pilot projects in 2018 from six to twelve. While the financial services sector is the target of most high profile cybercrime, international trade and shipping is a “high value” target for opportunistic cyber criminals. We will report in late 2018 on the implementation of this project.

 Share your thoughts today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

Crypto Mining Rocked Once Again by the Sentencing of GAW CEO Garza – Buyers Beware

Colleagues, crypto mining has been overwhelmed with illicit cybercrime from within and without. The sentencing of GAW CEO Josh Garza is simply the latest assault on the dubious mining sector. The crypto mining sector consists of three components – ASIC vendors such as AMD and NVidia, legitimate mining firms like Bitmain and the rather amorphous niche of mining services resellers. GAW falls into the mining services niche. In fairness to all, there are legitimate mining services firms such as Genesis, Hashflare, Eobot to name a few (visit Tech Radar for a more comprehensive list). GAW’s downfall was due to greed – pure and simple. Reseller more services than it actually had under contract was a classic Ponzi scheme. We have extensively reported on the onslaught of cybercrime targeting the vulnerable mining sector …, which was pervasive in 2017 and has reached epic proportions in 2018. Bottom line: Buyers beware. If you want to participate in the attractive crypto mining space a double [portion of due diligence in a necessity. Verify the firm’s background, Board of Directors, investors, check for any complaints filed with the US FTC or US SEC, have a legal expert review their terms and conditions, and speak directly with current customers large and small regarding the firm’s stability. Share your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/) 

Will Gemini’s New Crypto Key Storage System Prevent Double-Spend Cyber Attacks?

Colleagues, co-founders of the Gemini crypto exchange Tyler and Cameron Winklevoss have been granted a patent for “Systems and methods for storing digital math-based assets using a secure portal”. Digital asset ledgers will be used to protect users from “double-spend” cyber-attacks. Unlike traditional paper currencies, cryptocurrencies have the potential to be copied and rebroadcasted. This leads to the opportunity for nefarious cyber criminals to spend the same cryptocurrency twice. Multiply this type of transaction known as “double-spend” by 100s of thousands of transactions and the value of crypto jacking easily runs into the millions of USD. Bottom line: How effective will the new crypto key storage system be in preventing illicit “double-spend”? Our readers along with the global crypto ecosystem will not know the answer until this system is designed, developed and battle tested in the real world. Yes, we will be tracking this matter closely. Send us your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/)  

Will Blockchain’s Time-Stamped and Immutable Data Bolster the Fight Against Crypto Cyber Crime?

Colleagues, China has become one of the first countries to recognize Blockchain-based smart contracts as legally binding evidence. Moreover, the PRC has opened two courts dedicated to processing Internet and cybercrime. These moves would appear to strengthen crypto cyber security in both domestic and cross-border transactions. The UK Law Commission reported in July 2018 that it has launched a research project to assess the legitimacy of smart contracts as well. Meanwhile, the American Bar Association (ABA) views recognizes Blockchain-based smart contracts as a “disruptive advancement” which have the potential of transforming the legal system. Surely, there is a vocal minority in the global crypto ecosystem who view such measures as a hindrance to cryptocurrency adoption. By contract, we believe that collectively these initiatives will have two positive outcomes. First, enhanced security in cryptocurrencies and the Blockchains that enable them. Second, improvement in consumer and institutional confidence in cryptocurrencies. Send us your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/) 

IBM to join the parade of Blockchain-based payment systems vendor … with what level of security?

Colleagues, two of the greatest value propositions Blockchain offers the established financial and banking system is faster transaction speed accompanied by lower OPEX. This is especially appealing for trans-border payments. IBM’s World Wire joins the ranks of RippleNet, Ant Financial and GMO in this enticing market niche. The key players will likely tout their systems at the up-coming Sibos fintech conference in Australia this October. These systems are based upon on model integrated into a bank’s existing systems, fiat currency is exchanged into a digital asset at bank A which in turn is transferred to bank B where it is converted back into a second fiat currency. Sounds attractive, indeed. Bottom line: There are three critical success factors needed for this process to be commercially viable. They have speed and can reduce OPEX, but with what level of security … which is the Achilles heel of all Blockchains in the banking sector and beyond. We will closely monitor the aforementioned vendor’s system and report this fall. Send us your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/)