Skip to main content

FBI releases security tips for DeFi and crypto users

 


On August 30, 2022, the FBI issued an international alert about DeFi and crypto scams and the risks associated with the crypto platforms.


The US agency recommends doing thorough research before using DeFi platforms, smart contracts, and protocols. In this way, crypto investors could better assess the associated risks before making an investment. According to the FBI, investors should favor platforms whose codes have been audited at least once. The letter from the FBI states:


“Ensure that the DeFi investment platform has passed one or more code audits by independent auditors. A code audit typically involves a thorough review and analysis of the platform's underlying code. This can be used to identify security risks or vulnerabilities in the code that could negatively impact the performance of the platform.”


The FBI also stated that it was monitoring cybercriminals exploiting DeFi smart contracts. The criminals used, among other things, investment strategies or automated smart contracts. In these contracts, “an agreement between a buyer and seller is written directly in lines of code that exist on a decentralized blockchain network.” By exploiting these vulnerabilities, the cyber criminals have been able to capture profits that victims find very difficult to recover.


The FBI advises investors who suspect cybercriminals have stolen cryptocurrency to “contact the Internet Crime Complaint Center or your local FBI field office ”


DeFi hacks are becoming increasingly popular

According to the FBI, many scammers are taking advantage of the “complexity of cross-chain functionality and the open nature of DeFi ” to find potential victims.


“Cyber ​​criminals used vulnerabilities in DeFi platforms’ smart contracts to steal virtual currencies, thereby causing the loss of investor funds,” the agency explained. For example, the FBI observed a flash loan attack in which investors lost $3 million.


It is estimated that between January and March 2022, criminals stole $1.3 billion worth of cryptocurrencies . Around 97% of these thefts took place on DeFi platforms. In 2021 it was only 72% and in 2020 it was just 30%.


FBI gives recommendations for crypto platforms

DeFi users have the ability to borrow and lend assets similar to banks. However, these assets are uninsured and are more vulnerable to hacks and exploits as DeFi has hardly been regulated by the state until now.


The authority advises DeFi platforms to use analysis , monitoring and code testing to eliminate potential vulnerabilities that could lead to smart contract abuse.


In recent years, several consultants have recommended crypto companies to implement multi-factor authentication security software. Many experts agree that this is the safest and most sustainable approach. In practice, however, this procedure has not yet become established.


Disclaimer

All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at their own risk.

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

From offchain to offchain: Statechains meets Lightning

  Without a doubt, the most significant off-chain Bitcoin solution is the Lightning network. But in its wake, the statechain has emerged as an intriguing replacement. There is currently a proposal to link the two offchain networks. From an ocean, for example, you can see sunbeams glistening in the water, waves rippling, and possibly a jellyfish drifting toward the light. But you only see a small portion of it. The distance from the sea's surface to its bottom is hundreds of meters. It has dozens of different fish species swimming in it, crabs and starfish crawling on the bottom, shells clinging to rocks, and sea plants climbing up. A completely new world starts where your gaze diverges. You can picture a blockchain like Bitcoin, just like the sea. What you see on the outside is only a small portion of what is actually there; the set of UTXOs (coins) and transaction history that full nodes store are just the beginning of a much larger world. It's the plan, at least. With Bitcoin
Post a Comment
Read more

MSP Recovery and Tokenology aim to optimize healthcare with the help of Polygon

  MSP Recovery LLC, a Miami, US-based healthcare provider with an estimated enterprise value of $32.6 billion, is partnering with Web3 company Tokenology to jointly launch a new blockchain platform called Lifechain. Lifechain wants to leverage the verifiable and transparent nature of blockchain technology to aggregate medical care claims, medical expense reports and patient data and streamline their processing. For this purpose, MSP Recovery launched its own LifeWallet in January, which already has 1 million users. In addition to the wallet and blockchain platform, an associated crypto token called LifeCoin is also used. The press release explains that the primary purpose of the system is to enable secondary healthcare providers to more effectively bill health insurance companies for their costs. “The number of medical claims tokenized going forward will surpass $50 million per day by 2024. For this we need scalability, security and sustainability, which we have only found with Polygon
Post a Comment
Read more

Phishing attack on popular crypto sites tries to empty wallets

  Several major crypto sites such as Etherscan, CoinGecko, DeFi Pulse, and others report malicious pop-ups scammers use to try to trick users into connecting their MetaMask wallets. The phishing attack came from a domain displaying the Bored Ape Yacht Club (BAYC) logo. "We are investigating the root cause of this attack to fix the threat as soon as possible," CoinGecko founder Bobby Ong tweeted. The phishing attack appears to have been triggered by a malicious ad script from Coinzilla, a crypto ad network, according to CoinGecko. Etherscan also advises its users not to confirm any transactions that may appear on the website. The attackers attempted to use the hype around the “bored monkeys” non-fungible tokens (NFT) to gain access to the cryptocurrencies of unsuspecting website visitors. Although the websites affected by the scam attempt have reacted in the last few hours and deactivated the advertising pop-up, it is still recommended not to connect your MetaMask wallet to ne
Post a Comment
Read more