Cryptocurrency mining has become incredibly popular over the past few years . Whereas, millions of people worldwide want to earn crypto by securing this blockchain network. But, like anything else, when something becomes popular in the world of technology, cybercriminals look for ways to cheat around it.
Cryptocurrency technology has revolutionized the economic field in various countries and many dishonest people are taking advantage of this technology and are resorting to various scams. Currently, if you do not know the 5 methods of scams in the name of Crypto Mining in different countries, you may be in danger later.
So, in today’s tune I am going to tell you about some such cheating techniques of cybercriminals in the name of crypto mining, which you can be aware of.
1. Cryptojacking
Cryptojacking is a complex type of cybercrime, which involves using another person’s hardware to mine cryptocurrency. In this type of attack, attackers infect different people’s devices or specific mining hardware and mine crypto for themselves.
Such attacks usually require the installation of malware on a targeted device. It can be downloaded from various websites, email attachment, phishing or any other method to enter the targeted person’s device. And once cryptojacking malware is installed on a device, it can be automatically executed without the user’s knowledge. the
In this case the cyber attacker gets complete freedom to mine crypto on the targeted person’s device and continue to make profit using that person’s device. You can also think of large-scale cryptojacking operations as botnets, which are commonly seen in DDoS attacks and spam campaigns. Cryptojacking involves mining cryptocurrency using multiple infected devices.
The main symptoms of cryptojacking include slow performance of affected devices, overheating, crashes and abnormally high power consumption. If you are experiencing such symptoms on your device, scan the entire system of your device with an antivirus and take action against any Malicious Files.
2. Cloud mining scam
Crypto mining hardware is very expensive and some of the mining related products cost you millions of rupees and more. This cost of crypto mining hardware has made such ventures unaffordable for many. And to solve this problem, a new concept called cloud mining has been born.
Cloud mining is a process where a user pays them to mine cryptocurrency through a third party organization. In this case, the customer has to pay a monthly fee for using a certain amount of hardware for mining. According to the package taken by the investors, they are asked to pay a certain amount of money from those institutions or a certain amount of hardware is allocated to him, with which he will have the opportunity to mine at home.
But, cybercriminals are doing a lot of fraud in the market in the name of cloud mining. Where they offer especially fake websites or tempting offers to earn from cloud mining at very low prices. But in reality, these people collect cloud mining fees and don’t pay out their investments later.
Talking about cloud mining, this scam is more common nowadays. Therefore, it is important to know well about any cloud computing platform before you give information or money.
3. Fake crypto mining pool
Crypto mining pools are a popular choice for crypto miners. A crypto mining pool is a method where multiple miners work together tomine cryptocurrency . This is usually done because it can be difficult for single miners to mine blocks and win rewards. And that’s why many miners join together in a mining pool and each miner combines their own completing power or hash rate to mine.
The hash rates of all miners are combined to form a larger hash rate, and this combined hash rate increases the probability of mining a block. Then after the mining process the reward is divided among all the members of that pool. This is usually divided according to the computing power of the members of that pool.
However, you often have to pay a membership fee to join such a mining pool. This membership fee may vary by pool to take advantage of the huge collective hash power usage.
Although there are currently many trusted mining pools. However, these are also accompanied by numerous fraudulent pools, designed to trick users out of money and hash power. Over time, cybercriminals also cheat through these mining pools. In this case, they can create fake mining pools and use the hash power of different people to mine crypto for themselves and even cheat on membership fees.
Fake mining pools can look completely believable at first glance. And so, you should also research to select a best mining pool for Cryptocurrency Mining, so as not to fall for such scams.
4. High Profit Crypto Mining Scam
If a mineable point is properly designed and marketed, it can become very popular. And cyber criminals use this opportunity to do some scams. Where they originate some fraudulent mining coins. In this case, the promise of higher profits in the future can entice miners to mine those coins. the
This, in turn, increases demand for that coin and in turn increases the price of the coin. This could be especially good news for developers of that coin, though. Especially if they keep a large portion of those coins for themselves, which they can sell when the price rises. But, if their intention is to scam, then if you engage in such fraudulent mining coins, you will probably get very little financial gain from it, which is much less than your hard work.
Also, in mining such coins, miners may be charged in various ways to speed up the mining process or for more financial gain. It turns out that the coins cost much less than the time and money invested here. Even, the coins mined are not listed on any trusted cryptocurrency exchange platform.
Such fraudulent mining points can cause huge losses for mines. So, before mining any new coin in the market, it is important to research the project and developer behind it in detail.
5. Fake mining apps
As many people are interested in mining, many fake mining applications are also available on Google Play Store or App Store. These apps are mainly used to trick users into stealing their personal information or extorting money. In this case, many times the apps collect money from the users through various subscription fees, where in fact they do not conduct any mining activities. the
Several such mining apps were removed from the Google Play Store in 2020 due to such scams by fake mining apps, which stole millions of dollars from users. These apps show various fake mining statistics to make users believe that they are mining cryptocurrency , when in fact their device was not involved in any mining activity.
6. Crypto Ponzi Scheme
A Ponzi scheme is a fraud technique in which scammers collect money from new investors and give it to old investors as profits. Whereas, even though they talk about crypto mining, there is a Ponzi scheme behind it.
In such cases as they do not have real mining operations, at some point the scheme collapses and the people invested in crypto mining lose their money. So, before investing in any crypto mining, it is important to know the details about them.
last word
Many people have curiosity and questions about crypto mining. And many people are interested in cryptocurrency out of this curiosity and want to earn money by mining crypto in various ways. But, nowadays there are many scams in the name of crypto mining, which many people don’t know about.
Today’s discussion of 6 scams involving crypto mining is one of the most common scams by cybercriminals. However, from now on you can be careful by knowing these things.
