Blockchain hacking and why are cryptocurrency thefts rising so quickly?
Many people have referred to the blockchain technology as "unhackable" because it is said to be extremely secure and unchangeable. Unfortunately, recent events have demonstrated that hackers can access blockchains in specific circumstances. Hackers' main target is blockchain bridges. Successful attacks on "blockchain bridges" have increased frequently, and attacks on blockchain technologies are becoming common.
Blockchain bridges are a key component of the cryptocurrency ecosystem they are primarily targeted for attacks. Blockchain bridges, also referred to as network bridges, let users transfer digital assets between blockchains. Bridges are like a missing link between cryptocurrencies. Recently, the Ronin Network , a crucial chain of bridges that powers Axie Infinity was hacked by a North Korean hacking group ”Lazarus” which resulted in a loss of $620 million.
There are many scenarios in which hackers can access Blockchains.
● 51% attack-In this situation, half of the mining process is taken over by one or more hackers. Miners can create a duplicate version of the blockchain called fork, where some transactions are not recorded. Despite the fact that the fork contains a completely different set of transactions, the miners can claim that it is the genuine blockchain● Inadequate security: On exchanges, where users can trade cryptocurrency, many blockchain hacks have occurred. Hackers will have easier access to data if the exchanges' security procedures are weak…
Cryptocurrency thefts are at an all-time high as the Cryptocurrency thefts, hacks and frauds totalled more than billions of dollars and analysts say that the cryptocurrency hacks are set to transform and expand over time..Since the advent of cryptocurrencies in 2009, there has been may hacks of that sort in which, billions have been lost annually. A total of $1.7 billion was stolen in 2018, $4.5 billion in 2019, and $1.9 billion in 2020.
Cryptocurrency hacks can take many different forms. In simple terms, it would be considered a hack or theft if an attacker was successful in taking advantage of a chain, smart contract, exchange, or illegally withdrawing cryptocurrency.
Phishing and social engineering attacks are the most prevalent kinds of crypto hacking.
What's more interesting is that committing cryptocurrency crimes doesn't actually call for advanced knowledge or lots of experience. Crypto hacking kits can be purchased from a very little amount on the dark web.
In a nutshell, cryptocurrency hacking is inexpensive and hugely profitable, attracting criminals with more money at lower risk. The chances of being caught is also minimal because the code can go completely unnoticed for a very long period of time. Additionally, even after the source has been found, it can be very difficult to pinpoint it.
Because all of the cryptocurrency is kept in digital wallets, they are frequently targeted by cyberattacks. Here are a few of the various ways in which cryptocurrency can be hacked.
● Phishing is one of the most widely used technique by Hackers in which they are accessing the Person’s Computer for mining cryptos.It is accomplished by persuading the user to click on a phishing link, which will then either corrupt a website or download and install crypto mining software on their computer.
Person might accidentally be generating cryptocurrency for hackers.
Building a fake communication where users can enter their private information and have their accounts hacked makes this possible. These Websites take measures to ensure that they look exactly the same and like typical cryptocurrency trading platforms. They even send you a totally fake confirmation email to make it appear genuine. This can be avoided by carefully examining the domain name to prevent fraud.
● Nowadays, most of the crypto trading apps are not safe because of the weak security features and pretty mediocre architecture .Hacking mobile applications can be done for a number of reasons, including manipulating market positions by raising or lowering positions for particular cryptocurrencies and malicious access.
● Another way of attacking Cryptocurrency is by using malware. In this technique.
Whenever a new user accesses a web page, they are immediately redirected to infamous websites that look exactly like the original one but actually steal your personal information or coerce you into downloading malware and the malware uses keyloggers to infect the device in order to steal the PINs and passwords you are entering.
● It can also be done by diminishing their SMS confirmation, one can also attack a person's cryptocurrency . These individuals intercept the SMS during transmission and then steal the message. A sim can be chosen to be duplicated, and voice phishing can be used to confirm malicious transactions in order to recover and pass the crypto wallet.
Biggest cryptocurrency thefts and crimes.The poly network hack, in which more than $600 million of its customers' funds were taken, and the 2020 blockchain hack were both topics of discussion. The following incidents shed light on incidents crime data related to cryptocurrency hacking:
● Poly Network [$610 Million] - A hacker successfully used Poly Network in August 2021 to steal more than $600 million. Weirdly, the hacker agreed to return the majority of the stolen money, except $33 million of tether which had been frozen by the issuers.
However, The $200 million of the stolen money was locked up in an account that required a password from the hacker and Poly Network. The hacker initially resisted giving up theirs. That is, until Poly Network pleaded with them to make it public, offered to hire them in exchange for discovering the system vulnerability, and paid them $500,000!
● Coincheck [$532 Million]- More than $530 million worth of NEM (XEM) tokens belonging to the Japan-based Coincheck were stolen in January 2018. The fact that the money was kept in a "hot" wallet—a device that was connected to the server and thus effectively stored online was exploited by hackers. The process of identifying and marking these coins as stolen was very difficult for NEM developers. Many believed the money was available on the black market, but because the coins had a high value following the attack, it might have been considered a fair deal in the end.
● MT GOX heist [470 Million]- The biggest theft of Bitcoins from an exchange still occurs in this incident, which was the first significant hack on an exchange. The MT Gox heist, however, was not the product of a specific incident. Instead, the platform had been leaking money since 2011, and it wasn't until February 2014 that it was discovered. Hackers stole 750,000 bitcoins from the exchange's clients over a few years, along with 100,000 bitcoins from the exchange itself. These bitcoins were worth $470 million at the time, but they are now worth $4.7 billion, or about ten times as much. Shortly after the hack, MT Gox entered liquidation, with liquidators recovering about 200,000 of the stolen bitcoin.
Conclusion-Unfortunately, it won't be simple to overcome the obstacle. Both trusted and trustless platforms have design flaws. These inbuilt cross-chain imperfections are now apparent..
Additionally, as the value of the sector keeps rising, hackers also advance in expertise. The Web3 narrative has been adapted to conventional cyberattacks like social engineering and phishing attacks.
The multi-chain strategy, in which each blockchain has a native token version, is still a long way off. Cross-chain platforms must therefore draw lessons from the past and improve their procedures in order to minimize the number of successful attacks.