PRIVACY IN DIGITAL OR CRYPTOCURRENCY. SPOOFING PAYMENT INFORMATION AND PHISHING
Frauds are quite possible in the cyber world. Though you may
feel that it is safer than the traditional banking systems, you will be
surprised as to how many possible errors can arise while you are engaging in
transfers with cryptocurrency. As you may already
know, cryptocurrency means digital money which is transferred on the basis on
internet and wallet addresses. Now, the biggest problem with respect to this is
that while you make a cryptocurrency transfer, you do not need to put in card
details but the address of the recipient’s wallet. This may sound simple and
very effective at first. But, if you have a closer look, this too can be quite
risky. Often people are unaware of this due to lack of requisite knowledge.
This is another disadvantage of dealing in cryptocurrency. Spoofing payment
information and phishing implies that often when you put in one wallet address
for the transfer, it is replaced by another due to the quick action of malware.
This is where innocent victims fall into the trap because let us face it, not
everyone has the time to keep double checking the entered address. Each and
every individual is busy with work and wishes to get over with assigned tasks
as soon as possible. Same is the case with cryptocurrency users. However,
that is what leads to a fraud and privacy threat.
In case of phishing, people tend to go to online websites and
enter their cryptocurrency wallets details and password. This may seem like the
necessity at times to access certain websites. But, this must be avoided at all
costs.
There are several websites with similar content and you too must look
for alternatives instead of falling for one’s trap. Never enter your wallet
address and password anywhere.
In fact, what worsens the situation is that there
is no authority that you can complain to because this does not work on the
basis of any government of central bank. Blockchain is a whole new system in
its own and there is no one to take charge here in the cyber world of
cryptocurrency.
What is Hacking?
You must have heard of social media accounts being hacked and
fake IDs being created. In fact, not only heard but I’m also sure that a lot of
you or your friends must have experienced it and gone through a tiring
experience of letting others know that it was not you who sent the messages or
status updates. Well, a similar thing happens in case of cryptocurrency.
However, the main point of difference here is that you have no one to complain
to.
In fact, since there are no chargeback possibilities in the world of
cryptocurrency dealings even in dispute cases of online betting, you cannot get back
the sent currency either. Of course there is the exception of the recipient
sending it back to you but that too seems difficult since you have no details
of the recipient, what so ever.
There is a great privacy threat to cryptocurrency
because of hackers that reside all over the world. Skilled hackers hack into
the software and devices of top companies so your cryptocurrency wallet can be
an easily achieved target. Hackers can transfer money to their wallets from
yours and then immediately replace the payee. You will not even realize when
this will happen and may lose out of a chuck of your cryptocurrency earnings.
Though there are several ways of protecting yourself against these skilled
hackers, not everyone knows the internal tricks of the trade. This is what
leads to hackers successfully withdrawing money from your wallets and leading
to huge scams.
The most difficult aspect of this is that you won’t know who to
complain to or who to catch hold of. And getting an expert’s help is another
tedious story altogether.
ERROR IN THE USER’S ADDRESS
As stated earlier, cryptocurrency dealings do not require you
to out in any debit card or credit card details of yours or anyone else’s. This
is a pro of cryptocurrency. While traditional banking systems work on the push
mechanism of pushing out your basic details in the process of debiting to
merchants, the exact opposite happens in case of cryptocurrency.
In case of
cryptocurrency, it usually happens that the system works on a pull mechanism.
This means that only the relevant and limited details are pulled out in order
to transfer the amount to the wallet of the recipient that is entered by you.
But, here’s exactly where the catch is. It often happens that you may make
errors while entering the wallet address. But, a transaction once started
cannot be stopped or reversed in cryptocurrency dealings.
The transfer is
actually successful within a span of few seconds to minutes and the feature of
no chargebacks makes it impossible for you to get back the money that you have
willing just sent to an incorrect wallet address. Often everyone is busy with
their work and multi-tasking is the demand of the 21st century. However, this
is what leads to increased chances of privacy threats in cryptocurrency. Thus,
it is recommended by not only us but everyone around that you must always
double check the wallet address that you are entering. This may take up a few
seconds extra but is actually quite helpful and useful in the long run.
LOSS OF A WALLET FILE
This may sound impossible to you since you might be wondering
that how can an entire wallet be lost. But, that’s where you are beaten by
hackers and those who wish to make use of your wallet for their benefits. It is
a widely known fact that most users store their wallet and wallet details on
their computers and laptops. This means that it can be hacked into using
malware.
Also, it is often experienced that is a malware attack is not the
cause of this loss of wallet file, then it is the crash of a hard disk.
If your
hard disk crashes at any time and you do not have pre-determined back up, then
you will obviously automatically lose out on all your data that was stored in
it in the first place. This is why this is a great privacy threat in dealing
with and depending too much on technology such as cryptocurrency.
Onion routing is a technique for establishing communication
over a computer or laptop device and network. But what sets it apart from the
others interactions is that onion routing is anonymous. This means that I may
be having access to your computer network but you will not be be knowing that
it is me who is making use of your device. This is very challenging and
troublesome for the users of cryptocurrency or digital currency.
In the case of
an onion network, it is ensured that the messages are concealed in a thick and
dense grid of encryption. This is the same technology on the basis of which
cryptocurrency works.
Now, you must be wondering that how is this data transmitted
from one system to the other if it is anonymous and the address of the sender
is not known. Well, the catch is that it works on the basis of several inter
related and inter connected network nodes that are known as onion routers. Each
onion router is said to peel away in layers as and when the data is moved from
one stage to the other and finally one system to another. This means that as
the last layer finally peels away, it is understood that the message must have
reached its end stage or destination, as it is called in technical terms.
However,
just like every cloud has a silver lining, onion routing can also be fought
back owing to the excellence of top class techniques such as timing analysis,
to name the best one.
Time analysis means that though your visit to websites are
often kept secure, the fact that you were on the website is recorded. This also
records the time of your visit and that you had indeed established a relation
with the given site. This is what is one of the greatest weaknesses of onion
routing.
If luck favours you, you will easily be able to track the anonymous
connection that had tried to use your device and wallet details as well as your
wallet.
NATIONAL SECURITY AGENCY
Well, it may come as a huge surprise to you that a top notch
and respected body like the National Security Agency (NSA) has been known to
leak the information of Bitcoin users. Well, if you cannot believe it, then you
must read ahead to find out that what exactly happened and whether this
accusation on a national body really holds ground or it is just an act of
malice.
So, what actually happened was that there was a huge buzz and
frenzy that the National Security agency (NSA) had spied on Bitcoin users and
leaked valuable details about them. These details pertained to their personal
information and specifics of their cryptocurrency wallets.
According to reports
and statements released and made public by Edward Snowden, NSA reportedly
monitors all your activities on the cryptocurrency platform and uses them to
keep an eye on you. This is what enables them to make you their prey and you
won’t even realize it due to the skilled nature of their task.
National
Security Agency uses information such as your cryptocurrency wallet address and
your password. Thus, this is what makes you vulnerable and available for
frauds.
Covert Program
It is said that the National Security Agency was able to
successfully make this breach of privacy due to the presence and use of covert
programs which harvested, deeply studied and examined, and processed internet
traffic from all around the world on a really large scale.
What may take you by
surprise even more is the fact that the National Security Agency is suspected
of having been engaged in this act for several years now. It is said to have
several top class programs in its possession that helps to carry out this task.
Money Rocket
This was the name of the VPN-like service that was employed
by the National Security Agency to get hold of valuable user data. Yeah, it
sounded like a cool thing when you read the name but that is not the fact.
However, all that glitters is not gold, just like National Security Agency
which was earlier trusted, actually broke your trust by trying to maintain
access to your digital currency. This is a great threat to the privacy of all
digital currency all-round the globe.
Monkey Rocket was actually a sub-program
of an even larger and more reaching program that was called and referred
to as OAKSTAR. OAKSTAR was a indeed a concealed and hidden internet
surveillance program which allowed the agency to gauge and intercept
interactions from underlying fibre optic connections which create the basis of
world-wide internet.
Internet is literally no longer a privilege for a select
few but actually the necessity of the hour which has gotten everyone hooked
onto it. While it has its benefits, it has disadvantages as well that cannot be
overlooked or neglected or ignored at any cost, under any circumstances. The
covert operation was carried out in collaboration with several top corporates.
Monkey Rocket simply worked as a deception to Bitcoin users by leading them to
accept that it somehow helped to improve the factor of anonymity and privacy
while engaging with online sites and other users. Following the aforesaid, the
data gathered was shared and processed through the servers of the National
Security Agency who studied it further and made note of important key areas and
points.
Initially, it was seen that the program tried to access only limited
information which pertained to that of Bitcoin’s blockchain services. However,
it was later noted to try and gather intimate data as well about the life of
the users, be it personal or professional.
Now, we can be sure you can wonder how
dangerous that is. If you still do not get it, then imagine a situation where
there is someone who is spying on you at all times and has all details about
you such as your place of work, residential address, personal life and
relations, as well the password to your social media sites and electronic
wallets. Yes, that’s how creepy and scary it is. The same was done by the
National Security Agency who tried to gain control over every aspect of the
life of the Bitcoin user. All the achieved data was assembled and kept in a
file that was known as Provider user full.csv. The files by the National
Security Agency elaborate on then Monkey Rocket system as a non-westernised
service to ensure internet anonymity in the battle to counter terrorism. What
is noteworthy is the fact that it indeed not only spoke but actually did. By
this, we ca mean that it collected data from all over the globe from across
countries and continents such as Asia, the Middle East, Europe and South
America respectively. Further, it was said that it had a major chunk o users
from Iran and China.
The objective of the National Security Agency was to lure
users who were caught up in the traps of terrorism to use the goods and
services extended by the National Security Agency. This would apparently help
the National Security Agency to monitor the links between the terrorists and
thus enable the agency to stay ahead of them and counter all their attacks as
well as ruin all their plans.
Casting a Wide Net
The National Security Agency cast a wide net and what’s
shocking is that Bitcoin users were not the only targets. The other major aim
and objective was Liberty Reserve. Liberty Reserve is a predecessor of
Bitcoin. As per the Intercept, Liberty Reserve was mainly designed and thought
of in order to provide finance and constant funds for criminal activities.
The
Costa Rica-based currency was shut and discontinued in 2013. However, that
doesn’t mean that the National Security Agency’s role was also revealed at that
time. It must be pointed out here itself that at that time, it has been
successful in remaining under wraps.
Now, today is a time when there are so many concerns being
raised and voiced from all over the globe regarding the safety of
cryptocurrencies and all those who use it. Such acts by national bodies such as
the National Security Agency are bound to create panic amongst all cryptocurrency investors and users. In
fact, this must also be viewed from the viewpoint of national security of other
nations.
The National Security Agency pulls out all personal information as
well of citizens from different countries. Thus, other nations too feel that
their safety, security and national policies are at risk.
GOVERNMENT FORMED CRYPTOCURRENCY
Well, you may have already heard about issues with
cryptocurrency. This is not just on a personal level, but also a national
level. By this, I mean that there are so many countries where cryptocurrency is
not accepted as a legal form of currency transaction.
This means that in certain nations, your cryptocurrency money holds no grounds.
Thus, you cannot use cryptocurrency to avail of local services and products.
This may seem unfair to a chunk of the mass who wishes to reap the benefits of
cryptocurrency. However, just like every coin has two sides to it, it must be
noted that this step too is for the well-being of the masses. You must be
wondering how? Well, cryptocurrency comes with its own set of cons as well.
Though there are pros, the cons of cryptocurrency are too dangerous and cannot
be risked. The government realises that in case of any mishaps, they are the
ones to be blamed and held responsible. Thus, they wish to avoid chaos at all
costs. Besides this one main reason, the government of every country realizes
this as well that cryptocurrency users can easily be tracked. Thus, there is no
chance that the national security of the nation can be risked or put at stake
under any circumstances.
As you must already know, cryptocurrency is digital currency where
there is no third party involved. This means that there is no central bank to
control and guide or actions or a government who will sanction your activities
and judge them as right or wrong.
Also, cryptocurrency is free from the
influence of currency and exchange rates as it is an online platform. This is
what allows greater international trade but the government in turn loses
its power to control. This is what has irked the government of many countries.
A top example of this would be India where the central bank, the Reserve Bank
of India, has clearly stated that they will not be accepting any cryptocurrency
transactions in the country.
Though court cases have been filed against this
historic statement already, at the moment, this decision is what holds true and
is recognized nationally in the subcontinent. On the contrary, you’ll be
surprised to know that recently ab Islamic scholar went viral with the
statement that since cryptocurrency is used and accepted in Germany, it is
accepted as permissible by the Sharia law. This opened the cryptocurrency window to around 1.6 millions
Muslims all around the globe.
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However, having said all of this, the government too is no
fool to not realize the actual benefits of cryptocurrency. Also, it does
understand that there is an uprising and demand for the technology to be put
into action immediately all over the world. Yes, the masses often do tend to
fail in identifying the risks of cryptocurrency. This is what has to led to the
huge success and adoption of cryptocurrency platforms such as Bitcoin all over
the world. In order to combat this revolution of the public, the government of
countries is now thinking of starting off with their very own and personally
designed and launched cryptocurrency platform.
A classic example to explain
this better would be in Asia India’s attempt of paving the way for Lakshmi.
Lakshmi in the literal sense translates to money in Hindi, which is also
somewhat accepted as the national language of the Indian subcontinent. Though,
that debate it totally different and off topic in this case.
Coming back to Lakshmi, the Reserve Bank of India has already
assembled a team of experts in finance and technology to gauge and try to
implement the nation’s own cryptocurrency medium. This will be historic if it
is actually developed and put into use. However, there is certainly debate if
it will at all be like other digital currency portals since basic features such
as lack of third party involvement and no influence of exchange rates and
anonymity will be gravely challenged.
In fact, another hard hitting point to be
noted here is that the government may implement taxes on this cryptocurrency as
well and defeat the entire purpose of going digital for money transfers and
transactions. It will be interesting to note which other nations comes up with
this and how it ends up functioning in the long run. Theoretical explanations
are easier than practical implementations.
TIPS FOR CRYPTOCURRENCY HOLDERS AND CRYPTO INVESTORS
Read ahead to find certain quick tips on how to be careful
and safeguard yourself against all privacy threats of cryptocurrency. This is
imperative because the risk of cryptocurrency frauds is at an all-time high.
This is true of anything which is gaining rapidly popularity. Those who wish to
engage in fraudulent acts are on the lookout for such opportunities.
However,
though you may not be hundred percent sure of your safety, you must ensure that
you take necessary steps from your side. That’s the best you can do. Now,
without making you wait much, I would urge you to read ahead to see how you can
protect yourself and continue using cryptocurrency platforms to your advantage.
Please note that these are merely recommendations and it is upto you if you
follow them. Also, these do not mean that you will be out of the radar of
frauds. You need to be careful at all times.
1. You must ensure that you always verify the address of the
wallet that you receive. You must avoid online links to internet banking.
2. The second most important thing to do is to double check the
address of the wallet. As stated earlier in this article itself, malware is
often there to alter the electronic wallet address that is entered by you.
Though you may think that it is time consuming, investing a few extra seconds
is way more important than losing out on your digital currency. Remember, the
transactions once clicked on, cannot be reversed due to the no chargebacks
policy of cryptocurrency.
3. You must always keep a handy clue or hint that will help
you to remember your wallet password. You may argue that you will never forget
such a valuable piece of information. But remember the times when you told
yourself that you do not need to make written notes because you’ll remember it
mentally, and then totally forgot about it? Well, similar is the scenario here.
Thus, you must make note of a hint. It is recommended that you do not directly
note down the password because if it is obtained by someone else, then it can
be more of a disadvantage and huge loss to you.
4. Do not fall for traps. This means that you must not be
impulsive each time you see a cryptocurrency offer or deal. Learn to read
between the lines. Remember, no one will extend an offer to you just for your
benefit and their apparent loss. That’s not how the world works. You must understand
that each party only desires their maximum profit at your cost. Thus, you must
not reach hasty conclusions and go ahead with cryptocurrency investments in
unknown projects.
Remember, if your anonymity is useful to you, then someone
else might misuse their anonymity as well. Often, these turn out to be hackers
who try to make you fall for their trap and lead you to engage in transactions
with them. This way, they are able to gain access over your system and find out
all vital information about you, be it personal or related to you
cryptocurrency wallet.
5. It must be noted that all times that no transaction is
totally hundred percent safe and secure. This also means that there is no one
to guarantee that you will surely make profits if you invest in a particular
person or company. This totally depends on whether the investment is actually
genuine and how the deal and further actions follow. It is a myth that every
investment on the cryptocurrency platform is bound to reap great profits. I
repeat, you must always be sensible while investing.
Also, you must invest only
to the extent that you can. Just like there is a fifty percent chance of profit
and fifty percent chance of loss in business, similar is the case with
cryptocurrency. Also, you must not be in a hurry to diversify or expand your
base of actions and operations. Take time to think and act.
6. Always use cryptocurrency hardware wallets.
7. Lastly, it is your duty to
regularly or periodically run anti-virus protection on your devices. This means
that you must look out for high quality anti-virus systems that are bound to
protect all your devices from malware. Often, people avoid installing
anti-virus because it is paid. But what they forget is the fact that it must
not be seen as expenditure but investment. It helps to protect your system from
all corrupt attacks and malware. This small step can go a long way.
In fact, it
must also be noted that at times, this anti-virus may take time to install.
However, you must be patient and wait for it to be successful.
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