Crypto Dusting Attack | How To Prevent Dusting Attack?

What Is A Crypto Dusting Attack?

A crypto dusting attack takes place when an unidentified source or malicious attacker sends an extremely tiny amount (known as “crypto dust”) of cryptocurrency (generally Bitcoins or popular altcoins) to hundreds of different crypto wallet public addresses.

Purpose of “Dusting Attack” | Crypto Dusting Attack

Most of the attacks or scams are focussed on stealing cryptocurrency or computing power to mine assets. On the contrary, crypto dusting targets the “anonymity” to have the big game win and ultimately steal the funds, data, addresses, and also the transactional history.

  • Groundwork for a phishing or extortion attempt: By tracking the address of the wallets, scammers tend to uncover the identity behind a number of crypto wallet addresses and tend to make a mark for phishing attacks.
  • Cheap marketing gimmick: Sometimes the transfer of a small number of cryptos turns out to be a cheap marketing technique, which is even deployed by reputed crypto exchanges at one or the other time.

Infamous Binance-Litecoin Dusting Attack

On August 10, 2018, one of the reputed crypto exchanges Binance announced that fifty of the Binance-Litecoin addresses had received 0.00000546 LTC in their crypto wallets from an unknown source address.

How Can You Protect Yourself From Crypto Dusting Attacks?

  • Track every small transaction of your crypto wallet and if found suspicious then mark it as “Do Not Spend” and confirm the transaction source from the particular crypto exchange
  • To be fully confirmed that your wallet address won’t be tracked, you can change your wallet address for your transactions or can also utilize the obfuscating technology like that of Virtual Private Network (VPN) to hide your transactions. You can surely not stop anyone from sending dust to your account but can ruin the purpose of the attack
  • Crypto wallets can be chosen with special features to maintain high-end anonymity. For instance, some of the wallets use the hierarchical deterministic model and generate different public addresses for every transaction making the traceability of the wallet’s address practically impossible
  • You can utilize the various previous features to block the view of attackers. For instance, Using the Lightning network of Litecoin to send the transactions which are off-chain and cannot be monitored

Wrapping Up

Blockchain technology-based cryptocurrency is almost impossible to disrupt but as the new technologies are coming up with the new techniques, scammers and hackers are leaving no stone unturned to steal the digital assets of the crypto enthusiasts.

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Tarulika Jain

Tarulika Jain

Latest technologies like Blockchain, Artificial Intelligence, Internet of Things and many more amuse my mind to read and my fingers to write.