Crypto-Mining Cyber Attacks Continue to Be the Weakest Link in the Cryptocurrency Ecosystem

Colleagues, following high profile cyber security breaches against CoinSecure and CoinCheck earlier this year, crypto-mining attacks have skyrocketed in 2018 representing a plague on the global crypto ecosystem. In its Mid-Year 2018 Security Report TrendMicro states “We also detected a significant number of new cryptocurrency miner malware families, showing that cybercriminals remained keenly interested in profiting from digital currencies.” The Necurs exploit kit, CVE-2017-10271 via port 7001/TCP and Web miner script in AOL ad platform are some of the more notable cyber security used by crypto-miner attackers. Moreover, while cyber-attacks related to crypto mining far outpace other types of attacks, direct attacks against crypto exchanges are on the rise. Where does this leave the integrity of the global cryptosphere? Bottom line: The nature and rise in these attacks will continue to hinder the mass adoption of cryptocurrencies around the world. While far easier said than done, cryptosphere security needs to take a quantum step forward to gain and maintain a proactive advantage over the crypto threat juggernaut. Share your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/) 

NASAA Regulators Zero In on Securities Fraud – What is the Impact of Operation Cryptosweep?

Colleagues, Operation Cryptosweep (aka “OC”) is a joint effort of regulators from the US, Mexico, Puerto Rico, Canada and the US Virgin Islands targeting unregistered ICOs and related securities fraud. Overseeing OC is The North American Securities Administrators Association (NASAA). At is core is the US SEC’s Cyber Taskforce which was launched in September 2017. To date OC has led to some 200 crypto-related investigations. Bottom line: While we support the appropriate regulation of the cryptosphere the question of OC’s effectiveness is more than valid. Noteworthy exceptions to the list of member states are Caribbean nations known for money laundering and non-transparent offshore bank accounts. Antigua and the Cayman Islands are top of mind. Bottom line: The OC will have a positive effect on reducing crypto-related securities and ICO fraud, however, further attention needs to be given to other countries known for their nefarious roles in the broader crypto economy. Share your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/) 

Will Iran’s State-Backed Cryptocurrency Enable the Country to Evade US Economic Sanctions?

Colleagues, Iran has taken a major step toward the creation of a state-backed cryptocurrency. The primary goal of this effort is assumed to be the country’s circumvention of new US economic sanctions in the wake of US President Trump revoking support of the Iran nuclear arms accord in May 2018. Work on a national cryptocurrency dates back to late 2017 when the US President re-affirmed his campaign promise to revoke the accord and re-impose stiff trade sanctions. This initiative has the backing of Iranian President Hassan Rouhani and is led by their National Cyberspace Center. Back in January 2018 the US Treasury issued a severe warning against Iran’s use of cyber warfare and development of a cryptocurrency for this very reason. Bottom line: Iran, Russia and Venezuela has announced plans to develop digital currencies for the purpose of evading Western (aka US) trade sanctions. Transaction “transparency” is a vital factors in whether their efforts will be successful at essential protecting nefarious money laundering activities. We assume the currencies which be intentionally designed to avoid detection by the US and its allies. Details to follow in the coming months.

Share your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/)  

Will social media-based payment tools allow for “secure” cryptocurrency transactions and fundraising?

Colleagues, Google Pay, Alipay, WeChat Pay and Facebook Payments are among the most popular tools for online payments, money transfers and fundraising. Each tool is confronted with the dilemma of whether to accept cryptocurrency transactions. The Chinese Banking Regulatory Commission and the People’s Bank of China have release strong warnings against the so-called “crypto payments model”. In the US Google Pay and Facebook Payments are faced with similar challenges. They are global platforms and what is acceptable in one country or region may be prohibited elsewhere. The potential security risks are numerous – exchange fraud, money laundering, lack of transaction transparency along with the fundamental integrity of many second and third tier cryptocurrencies are bona fide concerns among government regulators, platform vendors and users alike. There is no “one size fits all” solution. Bottom line: We see marriage of online payment tools and cryptocurrencies as yet another ‘test’ as cryptos seek mass market adoption. Like other crypto related challenges we do believe that in time such issues will be resolved … although for now no one knows the precise solution. Share your thoughts today! Lawrence – Cryptocurrency Academy (https://cryptocurrencyacademy.blogspot.com/) 

How can Blockchain be used to secure digital documents and transactions in the public sector?

Colleagues, with good intensions the Japanese, Chinese, American and British governments are exploring the use of Blockchain to securely maintain and transmit documents containing sensitive information about their citizens. The latest example of the UK’ Ministry of Justice assessment of Blockchain for protecting its repository of digital forms of evidence. In the US Blockchain represents a means of securely processing records for Social Security, Medicare and other entitlement programs. Noble endeavors indeed. Nevertheless, the obvious dilemma is that such data and documents needed for smooth government processes will only be as secure as the Blockchains used to manage them. Protecting cryptographic keys remains a top concern. Using hardware security modules (HSMs) and trusted computers in place of digital wallets and as Blockchain nodes will give security-conscious users and organizations greater confidence. As reported by McKinsey and Company recent breaches of crypto exchanges clearly indicate that Blockchain participants and their access to the Blockchain represent a security weakness that must be addressed before the technology. Bottom line: As we have previously reported Blockchain adoption will be directly correlated to the level of both perceived and actual security. Such security is likely to increase as the technology matures. Share your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/)  

What would be the impact of securing the Siacoin Distributed Storage Protocol have on Crypto Mining?

Colleagues, the global cryptosphere is rigorously debating the security of the Siacoin Distributed Storage Protocol (aka the Siacoin Blockchain). More security translates into higher trust and integrity of the platform … right? The answer depends on which segment of the crypto ecosystem you ask. The new security code would fork Siacoin and in turn disabling mining products offered by Bitmain and Innosilicon. At press time we are waiting for Nvidia and AMD to weigh-in on this matter. Both companies have seen demand for their mining ASICs slow during H1 2018. So what is the end goal? Some would say driving increased capacity around the world to create a data storage marketplace that is more reliable and lower cost than traditional cloud storage providers. Our view is that this inevitable debate represents just one more growing pain as cryptocurrencies and their underlying Blockchains mature. The issue will get resolved and yes there will be winners and losers. More to come. Share your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/)  

Mining Malware at Fault a Cryptocurrency Theft of Some $87B in China

Colleagues, as we have previously reported mining malware has far outpaced the growth of ransomware over the past year when it comes to cryptocurrency theft. The most recent example is the theft in China valued at $87B of cryptocurrency by mining malware at the hands of three cyber criminals. Although details are limited, we understand this malware crime to be launched by Chinese nationals against Chinese cryptocurrency investors. To date we have seen many mining malware crimes initiated from within China targeting cryptocurrency investors located abroad.  McAfee Labs’ Threats Report for June 2018 identified more than 2.9 million samples of crypto-mining malware in Q1 2018 alone versus 400k attacks in Q4 2017 Q4 with JavaScript being the tool of choice when targeting web browsers. Bottom line: Both individual as well as corporate crypto investors need to be proactive in preventing crypto theft. Individuals needs to ensure the security on their computers and smartphones is as robust and up-to-date as possible, while institutions (corporations and telecom carriers) need to focus on router security. Share your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/) 

How critical in SIM Swap Fraud theft to cryptocurrency investors?

Colleagues, when members of the cryptocurrency ecosystem assess security threats SIM Swap Fraud likely ranks quite low on the priority list. Nevertheless, for cryptocurrency investors who use software-based crypto wallets the impact of SIM Swap Fraud can be significant. Case I point is the $224m law suit filed against AT&T by crypto investor Michael Terpin. Such fraud is a form of identity theft in which thieves convince untrained or unsuspecting telecom carrier and smartphone vendor support staff of the need to upgrade a SIM card. In turn the thieves gain access to most all of the phones apps and security information. The US Federal Trade Commission has been aware of this scheme for at least two years, however, there is little evidence that phone manufacturers and carriers have implemented protocols (e.g. human factors prevention methods) to reduce such crime. SIM Swap Fraud takes advantage of the rise of cryptocurrency software wallets and identify theft schemes. Cryptocurrency investors need to assess the risk-reward level of software vs. hardware vs. paper wallets along with their vulnerability to ID theft. Bottom line: SIM Swap Fraud is one more weakness is the broader crypto ecosystem which traders and investors need to mitigate. Share your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/) 

Crypto Money Laundering, Fraud and Mining Malware Drive Increase in FinCEN SARs

Colleagues, over the past year Financial Crimes Enforcement Network (FinCEN) – a branch of the US Treasury - has reported a significant increase in Suspicious Activity Reports (SARs). Money laundering, fraud and mining malware complaints by financial institutions have all contributed to a rise in SARs to over 1500 per month. It is no wonder that the rise in SARs is directly correlated with in growth in cryptocurrency market capitalization. And in turn, cybercrime – which are at the core of SARs – also correlates the number and trading volume of cryptocurrencies. FinCEN offers an online SAR Stats reporting tool in their web site. Bottom line: The Cryptocurrency Academy and Cyber Security Defender propose the formation of cybercrime protection alliance between the US Treasury, financial institutions, crypto exchanges and security vendors with the goal of reducing cybercrime related to the cryptocurrency ecosystem. Share your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/) 

How will Bitcoin’s emerging crypto monopoly impact global cryptocurrency markets?

Colleagues, despite an aggregate decline in total cryptocurrency market cap since early CY2018, Bitcoin’s percent of total market value has reached staggering 50% threshold. Data also reveal that the top 5 cryptocurrencies – Bitcoin, Ethereum, Bitcoin Cash, Litecoin and Ripple – control almost 60% of the global crypto market. View the data from CoinMarketCap tracking stats. The Cryptocurrency Academy and the Cyber Security Defender draw two key conclusions from these numbers. First, is the definitive market vale concentration – which is nearing monopoly status – around Bitcoin. Thus, the extended crypto ecosystem needs to serve customers by developing tools and applications which are purpose-built for Bitcoin. Second, is the rapid bi-furcation of the global cryptocurrency market between the “Big 5” and the second-tier cryptocurrencies which serve niche geographic- and application-specific markets. We believe that bad actors – such as Russia, Iran, North Korea, Syria, ISIS, and AOAP - will be the primary users of this cryptocurrency underclass of as they seek to evade economic sanctions and conduct nefarious financial transactions with little-to-no transparency. Share your assessment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/)