Web3 And Privacy Coins Will Be Prime Targets of Cybercriminals in 2023 – Kaspersky

Web3 And Privacy Coins Will Be Prime Targets of Cybercriminals in 2023 – Kaspersky

Kaspersky, a web security company, announced that cybercriminals are increasingly setting their sights on privacy coins and web3. This is contained in the company’s predictions for 2023.

Monero on the Rise?

According to the report, privacy coins such as Monero have continued to attract cybercriminals interested in breaching the security of web3 projects. The release added that these trends would increase in the coming months as malicious actors will target web3 projects.

The release by Kaspersky also said that privacy coins such as Monero will be preferred as means of receiving ransom over Bitcoin, which is currently the preferred cryptocurrency in ransomware attacks.

In 2021, web3-based concepts such as DeFi protocols and NFTs became popular, attracting malicious players to this segment of the cryptosphere. The report says that the segment has become an attractive operational ground for entities involved in cyber theft, phishing, and scams. 

Gaming Metaverses And Entertainment Projects Targeted

Kaspersky’s Crimeware and Financial Cyberthreats document stated that the metaverse gaming projects and other entertainment-themed projects would be prime targets of malicious activities in the coming year. It made it clear that cybercriminals mostly understand trends and follow them as legitimate investors are attracted to put funds in trendy concepts. The report further stated that “with the increasing popularity of cryptocurrencies, the number of crypto scams has also increased.”

The report said that even though fake projects and fraudulent ICOs have since become a part of the budding space, this trend will increase in 2023. However, more subtle scams, such as fraudulent smart contracts, will also be prevalent.

The DeFi space will also be targeted by criminals, as billions of dollars in total value locked (TVL) entice bad actors to take a chance due to the potentially massive rewards. A warning regarding fake NFT projects in the coming year was also included.

Flaws in smart contract codes have resulted in losses amounting to millions of dollars in the past. The report stated that hackers would increasingly exploit weak-coded smart contracts and flaws to steal assets from investors in the web3 space. On the positive side, the cybersecurity company said that this threat is the reason why smart contract audits are growing in popularity. Despite this, it highlighted that end-user flaws are still weak points within the security chain. This gives fraudsters enough room to maneuver.  

Crypto Users Are More Informed On Some Types of Scams

The report said that people are getting wiser concerning common crypto scams, such as those that promise to double the funds of those that first send some cryptocurrencies to a supposed celebrity wallet address. However, other types of scams are still prevalent, including pump-and-dump schemes.

On ransomware, the report said that Bitcoin is no longer the cryptocurrency of choice for ransomware attacks. It stated that the reason is that cyber crooks are now aware that the coin is becoming easier to trace. It stated that tokens such as Dash, Zcash, and Monero are the preferred privacy coins by criminals. These blockchains have mechanisms that hide transactions and wallet addresses, making it increasingly more difficult for authorities and blockchain forensics experts to trace.

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