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    Home ยป Analyzing SlowMist Private Key Leaks Top Cause of Cryptocurrency Theft in Second Quarter

    Analyzing SlowMist Private Key Leaks Top Cause of Cryptocurrency Theft in Second Quarter

    By adminJul. 3, 2024002 Mins Read
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    Analyzing SlowMist Private Key Leaks Top Cause of Cryptocurrency Theft in Second Quarter
    Analyzing SlowMist Private Key Leaks Top Cause of Cryptocurrency Theft in Second Quarter
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    Internet security company SlowMist analyzed victim assistance messages received by its investigative arm, MistTrack, in the second quarter of 2024 to analyze common and rare hacker attack methods. After studying 467 stolen form submissions, the company identified private key leakage, phishing, and scams as the top three reasons for cryptocurrency theft last quarter.

    According to a report released by SlowMist on Tuesday, victims’ private key leakage is primarily caused by storing keys/mnemonics in cloud storage services such as Google Docs. The report also warns of risks associated with sharing sensitive information like mnemonics via communication apps like WeChat, despite their use of security measures like end-to-end encryption. The SlowMist team stated that attackers also employ other fraudulent methods, such as impersonating customer service personnel or sending phishing links through platforms like Discord. SlowMist emphasized never disclosing private keys or mnemonics under any circumstances.

    Additionally, downloading fake wallet apps posing as popular cryptocurrency wallets was cited as another major cause of private key leakage. These apps are predominantly found on third-party app stores. SlowMist reported discovering a non-existent version of the imToken wallet on the APKCombo third-party app store, which was noted as the most prevalent fake imToken wallet version currently circulating. There have even been cases where users unknowingly downloaded fake Twitter apps resulting in stolen private keys or mnemonics.

    SlowMist also highlighted phishing attacks on social media platforms as a cause of cryptocurrency theft. Users often fall victim to phishing links posted by scam groups under the guise of official cryptocurrency project accounts. Clicking on these links and proceeding with authorization and signatures can lead to asset loss.

    The report recommended strategies such as enhancing user security awareness and utilizing technical measures like phishing risk prevention plugins such as Scam Sniffer to safeguard assets and information.

    Regarding scams, SlowMist noted that the most common method observed was “rug pulls,” with most incidents reported on the Binance Smart Chain (BSC). Fraud groups typically entice victims to purchase meme coins that can only be bought and not sold, creating the illusion of rapid appreciation through pump-and-dump schemes. SlowMist cautioned market participants against falling into such traps, suggesting thorough token inspection, checking smart contract codes on block explorers for auditing and verification, reviewing project backgrounds, and increasing self-defense awareness.

    Source:
    SlowMist, crypto.news

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