50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Security Firm Exposes Tactics Behind Fake Deposit Attacks on Exchanges

Published 28/07/2023, 15:13
Security Firm Exposes Tactics Behind Fake Deposit Attacks on Exchanges

  • Security firm SlowMist reveals the alarming rise of fake deposit attacks targeting crypto exchanges.
  • Attackers exploit system errors to deceive exchanges, obtaining crypto for free.
  • The tactics include fabricating events, zero confirmation, and fake coins.

In a recent blog, blockchain security firm SlowMist revealed the alarming prevalence of fake deposit attacks targeting crypto exchanges. These attacks exploit system errors in exchanges’ deposit operations, allowing attackers to deceive the exchanges into crediting digital assets to their accounts without any actual payment.

The security firm outlined the typical deposit process in exchanges and noted that the decentralized architecture of blockchain prevents security measures from blocking such malicious transactions from scammers.

SlowMist clarifies that fake deposit attacks are not inherent blockchain vulnerabilities; instead, attackers exploit specific blockchain characteristics to create deceptive transactions.

SlowMist’s security team identified 12 common attack tactics. These include the “Zero Confirmation” technique, where the deposit transaction is credited before being included in a block, a…

The post Security Firm Exposes Tactics Behind Fake Deposit Attacks on Exchanges appeared first on Coin Edition.

The post Security Firm Exposes Tactics Behind Fake Deposit Attacks on Exchanges appeared first on Coin Edition.

Read more on Coin Edition

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.