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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.

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