How criminals steal Bitcoin

Bitcoin theft is a widely reported issue in the press, making many people wonder whether it is safe to invest in cryptocurrencies. Bitcoin’s underlying blockchain technology boasts enhanced security but, it is a human creation and could be vulnerable to attacks like any other innovation.

Nevertheless, knowing how the theft occurs is essential to protecting your virtual investments, helping you understand the measures against criminals. The following article unearths how criminals steal Bitcoin. 

Theft of Private Keys 
Your private keys are like the passwords used to secure the digital wallet from unauthorized access. That means anyone who gets those keys can easily access your wallet and withdraw the funds. As such, it is one of the things that criminals will struggle to acquire to steal your Bitcoin. Most people usually keep their private keys on crypto exchanges or cloud drives linked to the internet. That means criminals can quickly gain your private keys by hacking those platforms. Whenever that happens, the criminals gain control of your digital wallet, allowing them to access and transfer your Bitcoin holdings to untraceable accounts. 

Exploiting Digital Wallet Vulnerability 
Crypto exchanges like https://bitcoinup.trade/ are the most common platforms that people visit to acquire Bitcoin and digital wallets. However, there are also other service providers offering digital wallets. Some of them keep users’ private keys in virtual wallets for convenience. Besides, those wallets have unique features that could make them vulnerable to criminal attacks. For example, wallets with one-step verification are straightforward and highly vulnerable than those with multi-step authentication. Most hackers use sophisticated software and tools, enabling them to easily exploit virtual wallets’ vulnerabilities from web-based platforms. 

Fraudulent Crypto Exchanges and Investment Funds 
While there are many real and legitimate crypto exchanges, criminals use some fronts to steal from unsuspecting customers. Most of them promise huge payouts, attracting both small and large-scale investors. They usually offer deals that seem too good to be true, promising oversized returns with minimal effort. Unfortunately, they are just schemes that leave investors with severe losses. The Ponzi Scheme is an excellent example, which left investors with losses of over $4.5 million. 

Direct Attacks on Legitimate Crypto Exchange Platforms 
Criminals know that crypto exchanges attract thousands of users with constantly growing trading volumes. Those platforms also store millions worth of Bitcoin for their customers. Besides, most businesses often keep their Bitcoin holdings in crypto exchanges for convenience. Thus, some criminals do not target individual Bitcoin users but launch attacks on crypto exchange platforms, assuming doing so would generate massive payouts. With the right tools, hackers can steal Bitcoin from the wallets of legitimate crypto exchange platforms and their customers. That could enable them to steal vast amounts of Bitcoin in just a single attack. 

Dark Web Marketplaces Attacks
Dark web marketplaces allow people to transact with utmost discretion and security. Those platforms are inaccessible via ordinary search engines but comprise several e-commerce sites. And, criminals know that most people use those platforms to conduct various transactions worth millions in Bitcoin. Despite the strict security measures on dark web marketplaces, they are also vulnerable, like Bitcoin exchanges and virtual wallets. Accomplished hackers have the means to compromise those security measures and gain control of the dark web marketplaces. A good example is the Mt. Gox, a Bitcoin heist on a dark web marketplace called the Sheep Marketplace. It was a sophisticated hack that left the platform with a loss of over $100 million worth of Bitcoin. 

Security is among the main challenges facing cryptocurrency users. While Bitcoin developers continue to improve the safety of the network, it would be best if users also took the necessary precautions to safeguard their virtual assets against the threats of hackers and other cybercriminals.