Cryptocurrency and NFTs have become dominant topics in the tech world, with trading volumes reaching record highs. However, as interest grows, so do financial crimes targeting digital assets. In 2022, scams surged dramatically compared to previous years, including high-profile cases like the Hong Kong USDT fraud reported by local media. This guide explores four major cryptocurrency vulnerabilities and actionable safety measures.
Four Common Cryptocurrency Crimes Through Recent Cases
1. Exploiting Blockchain Vulnerabilities
Hackers have stolen millions by targeting weaknesses in blockchain networks. For instance:
- Axie Infinity Hack (2022): North Korean hackers exploited a flaw in the Ronin blockchain, stealing **$615 million** before users noticed the breach. Despite a $125 million recovery fund, most losses remained unrecovered.
👉 Learn how cold wallets prevent such attacks
2. Phishing Attacks
Scammers use deceptive emails or links to hijack NFTs:
- OpenSea Incident: Fraudsters tricked users into signing "blank" smart contracts, transferring 254 NFTs worth $1.7 million, including Bored Ape collectibles.
- Hong Kong USDT Scam: A phishing site stole $77,000 worth of USDT from victims.
3. NFT Money Laundering
NFTs' subjective value and decentralization enable illicit activities:
- U.S. Treasury Report Findings: Criminals purchase NFTs with illegal funds, resell them to create "clean" transaction records, or conduct off-ledger peer-to-peer trades.
4. Fake NFT Rug Pulls
Fraudulent projects lure investors before disappearing:
- Day of Defeat Token: Developers promised 10,000,000x returns, then withdrew $1.35 million, crashing the token’s value by 96%.
How Investors Can Mitigate Risks
1. Use Official Customer Support Channels
- Verify legitimacy via verified platforms only (e.g., official Discord/Twitter badges).
- Never share sensitive data like wallet credentials or seed phrases.
2. Enable Two-Factor Authentication (2FA)
- Adds a critical security layer requiring random six-digit codes from authenticated apps.
👉 Explore secure crypto platforms
3. Avoid Suspicious Links
Three Rules:
- Check sender email addresses.
- Avoid unknown links.
- Never enter personal data on unverified sites.
4. Use Unique Passwords
- Password managers (e.g., Bitwarden, 1Password) help generate and store distinct passwords securely.
5. Store Crypto in Cold Wallets
- Hardware wallets (e.g., Ledger, Trezor) keep assets offline, immune to online hacks.
FAQ
Q: Can stolen cryptocurrency be recovered?
A: Rarely. Transactions are irreversible; prevention (e.g., cold wallets) is key.
Q: How do I spot NFT scams?
A: Research teams, check for audits, and avoid "guaranteed returns" promises.
Q: Are NFTs really used for money laundering?
A: Yes, due to opaque pricing and private sales. Regulatory scrutiny is increasing.
Q: Is 2FA enough for crypto security?
A: It’s vital but should pair with hardware wallets and phishing awareness.