Vladimir Okhotnikov on the Essence of Crypto Fraud and Methods of Protecting Against It
In a new article Vladimir Okhotnikov of Floralia company analyzes the situation with the development of cryptocurrencies and the growing interest in them from cybercriminals.
He considers the issue of fraud in the crypto business and shares methods to protect against it.
Vladimir Okhotnikov is a famous publicist, IT developer, and an expert in the field of blockchain and cryptocurrencies.
In the article Vladimir Okhotnikov says that fraud in the crypto business is becoming a serious problem. Cryptocurrencies attract great interest from scammers. Although 100% protection against IT threats does not exist, the expert identifies methods for minimizing risks that can be used by users.
Vladimir Okhotnikov about the features of cyber fraud
Vladimir Okhotnikov says that cybercrime in the crypto business is characterized by features dictated by the specifics of blockchain and cryptocurrencies.
Anonymity is a factor on the side of attackers. Intelligence agencies are able to identify the owners of crypto wallets, but this requires time and resources.
Using Bitcoin as an example, the expert describes the cross-border nature of crypto-crimes, which does not allow the police to get to the scammers, due to the fact that the authorities are limited by borders, while criminals work outside them.
Vladimir Okhotnikov describes the methods of cybercriminals and gives recommendations for protecting users
Vladimir Okhotnikov describes the methods used by cyber fraudsters.
The first one is hacker attacks. Cybercriminals do not hack the blockchain itself, they steal the keys to it. Flawed software of cryptocurrency exchanges allows hackers to gain access to wallets through vulnerabilities in the programs to private keys.
Private crypto wallets are also susceptible to such attacks; scammers penetrate the victim’s computer and find the seed phrase. The programs determine the keystroke algorithms when typing a password, listen and monitor users.
Vladimir Okhotnikov describes the next method of cybercrime, which is social engineering. It is used by criminals to obtain information using the phone. Social engineering is the work of professionals with call centers, where negotiations are conducted using scripts.
Vladimir Okhotnikov also describes fraudulent methods, calling it a “promising startup”. in which a well-known person is the advertising person. Having trusted advertising, a victim invests money. Then a stop occurs, accounts and managers disappear. Vladimir Okhotnikov believes that it is difficult for a private investor to understand whether people are proposing a project in good faith. The expert sees a solution in the formation of a crypto-commonwealth. Only professionals can distinguish real projects from fraudulent schemes.
Next, Vladimir Okhotnikov mentions a classic scam, the “Pump and Dump” method. It is quite simple: scammers identify an asset that has a low price, inflate it by buying and selling it to themselves, gradually increasing the price. At the peak, scammers sell off the asset.
In conclusion: Vladimir Okhotnikov about “children’s disease of growth”
In conclusion, the crypto expert summarizes: the technologies for protecting the cryptocurrency industry will be fine-tuned. But protection should be offered by the crypto community itself, and not by regulators who could jeopardize the very development of the crypto business.
About Company
Floralia is a company engaged in crypto business consulting and macro analytics. Vladimir Okhotnikov of Floralia is an author of numerous publications on blockchain and cryptocurrencies, analyst, developer of digital projects. He is a supporter of economic freedom and an opponent of state control over crypto business.
Media Contact
Company Name: Floralia, LLC
Contact Person: Vladimir Okhotnikov
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Country: Kazakhstan
Website: https://vladimirokhotnikov.com/