How-cyber criminals-are-exploiting-bitcoin-and-other-virtual-currencies-2

Editor-in-Chief at Cyber Defense magazine, Pierluigi is a cyber security expert with over 20 years experience in the field, he is Certified Ethical Hacker at EC Council in London.Creating and implementing an effected risk-based oversight of bitcoin and other virtual currencies.The cases of botnets introduced are just a few samples of possible use of this architecture for mining purposes.Soaring Bitcoin value has attracted above all the interest of cybercrime.

Another View: Shady deals in virtual currency ‘bitcoin

The interest in Bitcoin, one of the most popular currency schemas is high, financial world, small savers, merchants and of course, cyber-criminals observing with interest the strong surge of its price and subsequent abnormal oscillations.

Bitcoin sheds dark past as crooks turn to other virtual

Another way to monetize the use of Bitcoin is to contribute to the generation of new coins, also known as Bitcoin mining.Is Swiftcoin a modified version of Bitcoin or is it a new eCurrency.We assume that the calculations are based on mining constantly for 24 hours using the CPU only at current exchange rate and difficulty factor.The researcher, in fact, isolated a new variant of malware that used the popular Skype VoIP client to send messages to the users suggesting that they click on a malicious link to see a picture of themselves online.The number of cyber-crimes related to virtual currency is dangerously increasing.Identifying Emerging Risks Associated with Bitcoin and Other Virtual Currencies.

Bitcoin, and more in general any other virtual currency schema, has introduced a revolutionary and uncomfortable concept of decentralization of the currency.In a Bitcoin peer-to-peer architecture, each node could acquire coin blocks sharing its computational resources to solve the cryptographic proof-of-work problem in a Bitcoin mining process that could allow to the user to lead to a reward of up to 50 Bitcoins per block if he were successful in solving a block.To evaluate the profitability of a botnet, we have to multiply the obtained data for the number of machines that compose the malicious structure and for the number of days it operates.

Investor ALert Ponzi schemes Using virtual Currencies

Of all the methods discussed frankly, that this is harder to conceive, but cyber-crime is a cutthroat industry and the dynamics sometimes unpredictable.According to security firm Trustwave, the Pony botnet might be the most ambitious cyber-attack on virtual currencies yet.New cyber-threats are menacing both Bitcoin exchanges and Internet users.

Reviewing recent cases and real-life activities of virtual currencies to anticipate emerging impacts on transaction monitoring, transparency and other AML issues.

bitcoin exchange for other virtual (centralized) currencies

The attacks reported up to this point mainly targeted service providers such as the Bitcoin exchange.In November 2011 the Mac malware DevilRobber was spreading in bit-torrent file sharing sites inside copies of a Mac OS X image-editing app called Graphic Converter version 7.4.To do this, it is necessary to understand the dimensions of the botnet, evaluating its profitability.This could lead to a distortion of the main mechanisms of control and taxation, bringing total chaos in a market already in disarray and promoting the development of illegal activities through the coverage of cash flows.This new legislation appears to offer a roadmap to financial institutions and governments across the world that have struggled to understand and regulate bitcoin.InfoSec Institute is the best source for high quality information security training.

As the popularity of bitcoin and virtual currencies continues to expand, join this panel of experts as they detail how to protect your institution from associated emerging risks.Using the following parameters today (April 24, 2013) we obtain the following calculation related to a single day of mining activity.

The calculation demonstrates that botnet represents an excellent way to monetize Bitcoin mining.The Webroot Threat Research Department has already detected many malicious campaigns targeting Bitcoin users.In this case, the malicious code appears very invasive and noisy because it saturates CPU use for its activities.The number of Bitcoin thefts during the last years has grown hand-in-hand with the popularity of digital currency.One of the most malicious malware in history was created with specific intent to steal Bitcoin Infostealer.Coinbit. It is a Trojan horse that attempts to steal Bitcoin wallets stored on Windows machines.Wallets protected with passphrase encryption still remain vulnerable to a replay attack if the host has been compromised by malware, or if malicious code is able to sniff the passphrase using, for example, a keylogger.

Such a system brings into question the legitimacy of monetary policies in a global and digital economy.If the malware finds a wallet, it tries to send it to the attacker via email using the SMTP server smtp.wp.pl. Of course, the malware authors tried to target those wallets that were unencrypted.Gox was possible due hacking that exposed the list of user accounts and password hashes.Recently, Security experts from Kaspersky Lab found variant of malware spread via the popular Skype VoIP.Another example of this strategy is confirmed by the recent attack to the Bitcoin Blockchain portal,which was knocked offline also by a DDoS attack despite the fact the site adopted the proper countermeasures.In June 2011, one of the principal Bitcoin exchanges was victim of an attack.

Executing a fake and infected version of legitimate software, packaged with malware.The real danger of digital money, above the vulnerabilities in its processes, is the impossibility for the governments to exert control over financial flows.Theft of Bitcoin can be perpetrated by cyber-criminals to make a direct profit, to attack the virtual currency scheme itself for speculation purposes, or to affect the level of trust on the currency.Pierluigi Paganini is Chief Technology Officer presso CSE Cybsec Enterprise, member of the ENISA (European Union Agency for Network and Information Security)Treat Landscape Stakeholder Group, he is also a Security Evangelist, Security Analyst and Freelance Writer.Ponzi schemes Using virtual Currencies. virtual currencies, such as Bitcoin,. investors into Ponzi and other schemes in which these currencies are used to.This virtual currency online training provides details on how to protect institutions from risk associated with Bitcoin and other emerging currencies.In that case, the attackers compromised a customer service portal to target wallets stored on Linode servers.In this way, the criminals could acquire or sell huge volumes of the currency, making great profits.

Security experts, economists and of course cyber-criminals noted the relationship cause and effect between the value of digital currency and cyber-attacks against major players in the virtual currency system, such as the Bitcoin exchange service.Recently, we read of malware authors and botmasters that are trying to exploit new and old channels to steal virtual currency or mine it using the computational resources of the victims.According to the official statement released by Linode after the attacks.Clicking on malicious shortened URLs spammed through Email or social Media platforms (e.g. through Facebook, or Twitter).As a result, Florida lawmakers collaborated with Miami-Dade cyber-crimes prosecutors in an effort to draft new legislation that would make sure criminals would not find safe harbor in utilizing virtual currencies.According Sophos security firm, the legitimate Apple program was altered by extra code for Bitcoin miners.