Abstract: Nowadays, media coverage about the high cost of Cryptocurrencylink Bitcoin certainly attracted the attention of everyone. Bitcoin is the mostcommonly known virtual digital currency that uses cryptography.cryptocurrencyis one application of a concept known as blockchain technology. Ethereum,Ripple, Litecoin, Dogecoins and Feather coins are some other forms ofCryptocurrency. Cryptocurrency can be attached with the concept of mining alegal way to earn a small amount of Cryptocurrency.
The Basic principles forall cryptocurrencies mining are almost same and are introduced in this paper.As cryptocurrency systems are not bound to aparticular location or jurisdiction, the integrated payment network has aglobal reach and can be used to transfer funds within a short time. how many people use cryptocurrency isimpossible to know precisely as a person may have many cryptocurrency walletsand exchange accounts for different cryptocurrencies.
Cryptocurrencies likebitcoin has transformed the illegal market and trade in illegalgoods.cryptocurrencies in recent years has become a popular target forcriminals as they handle and store large amounts of cryptocurrencies alsocryptocurrency make illicit transactions easier than it was customarypreviously.Here issues of security of cryptocurrencies,cybercrime and latest cases of cybercrime related with cryptocurrencies arediscussed. Keywords:Cryptocurrency, Cybercrime, Cryptocoin Mining, Bit Coin,Hacking . Introduction: World economy and trade has seen a positive growth inthe digital cryptocurrency. Internationally renowned cryptocurrency is bitcoin.Most of the countries in the world have a positive approach on the accptance of cryptocurrency.
In Indiacryptocurrency is neither accepted asa legal currency nor declared as illegal.Protected, instant and Secure transactions by cryptocurrency like bitcoin haveproven to be attractive for cybercriminals. Cryptocurrency:A cryptocurrency is adigital or virtual currency designed to work as a medium of exchange that usescryptography, the process of converting legible information into an almostuncrackable code, to track purchases and transfers. A cryptocurrency isdifficult to counterfeit because of this security feature. A defining featureof a cryptocurrency, and arguably its most endearing allure, is its organicnature; it is not issued by any central authority, rendering it theoreticallyimmune to government interference or manipulation.Cryptography was bornout of the need for secure communication in the Second World War. It hasevolved in the digital era with elements of mathematical theory and computerscience to become a way to secure communications, information and money online.Bitcoin, created in2009, was the first decentralized cryptocurrency.
which was created by ananonymous individual or group known as “Satoshi Nakamoto.” The currency usesSHA-256, a cryptographic system designed by the U.S. National Security Agency. Satoshi Nakamoto didn’t set out to inventcryptocurrency; rather, the goal was to create a digital cash system wheretransactions could be validated without the need for a central entity, thusensuring that transactions would be anonymous.
The resulting technology, knownas blockchain, birthed bitcoin and every cryptocurrency that came after it.Cryptography is used toprotect information by converting it into an unreadable format (encryption),called cipher text. Each such encryption is secured by a unique key. Only thosewho have the key can decipher the message into plain text (decryption).Sometimes these messages can be accessed by cryptanalysis (code-breaking),although modern cryptography techniques are practically unbreakable.Ordinarily, cryptography systems can be classified into:i.
symmetric-keysystems that use a single key that both the sender and recipient have, andii. public-key systemsthat use two keys, a public key known to everyone and a private key that onlythe recipient of messages uses. How to mine Cryptocurrency:Mining cryptocoins isan arms race that rewards early adopters. You might have heard of Bitcoin, thefirst decentralized cryptocurrency that was released in early2009. Similar digital currencies have crept into the worldwide marketsince then, including a spin-off from Bitcoin called Bitcoin Cash.You can get in on the cryptocurrency rush if you take the time to learn thebasics properly.Cryptocurrency Benefitsand Drawbacks:Cryptocurrencies make it easier to transfer fundsbetween two parties in a transaction; these transfers arefacilitated through the use of public and private keys for security purposes.These fund transfers are done with minimal processing fees, allowing users toavoid the steep fees charged by most banks and financialinstitutions for wire transfers.
Central to the genius of Bitcoin is the blockchain it uses to store an online ledger of all the transactions that have everbeen conducted using bitcoins, providing a data structure for this ledger thatis exposed to a limited threat from hackers and can be copied across allcomputers running Bitcoin software. Many experts see this block chain as havingimportant uses in technologies, such as online voting and crowdfunding, andmajor financial institutions such as JP Morgan Chase see potential incryptocurrencies to lower transaction costs by making payment processing moreefficient.However, because cryptocurrencies are virtual anddo not have a central repository, a digital cryptocurrency balance can be wipedout by a computer crash if a backup copy of the holdings doesnot exist. Since prices are based on supply and demand, the rate at which acryptocurrency can be exchanged for another currency can fluctuate widely.Cryptocurrencies are not immune to the threat ofhacking. In Bitcoin’s short history, the company has been subject to over 40thefts, including a few that exceeded $1 million in value.
Still, manyobservers look at cryptocurrencies as hope that a currency can exist thatpreserves value, facilitates exchange, is more transportable than hard metals,and is outside the influence of central banks and governments. Cybercrime:Cybercrime,also called computer crime, is any illegal activity that involves a computer ornetwork-connected device, such as a mobile phone. The Department of Justicedivides cybercrime into three categories: crimes in which the computing deviceis the target, for example, to gain network access; crimes in which thecomputer is used as a weapon, for example, to launch a denial of service (DoS)attack; and crimes in which the computer is used as an accessory to a crime,for example, using a computer to store illegally-obtained data.
The growth of theinternet has enabled an increase in the volume of cybercrime activities becausethere is no longer a need for the criminal to be physically present whencommitting a crime. The internet’s speed, convenience, anonymity and lack ofborders makes computer-based variations of financial crimes, such as theft,money laundering or fraud, and hate crimes, such as stalking and bullying,easier to carry out.Cybercrime may becommitted by individuals or small groups, as well as by criminal organizationsthat are often spread around the world and committing crimes on anunprecedented scale. Cybercrime has the unusual characteristic that the victimand the perpetrator may never come into direct contact; in many cases,perpetrators and victims are separated by thousands of miles. To further reducethe chances of detection and prosecution, cybercriminals often choose tooperate in countries with weak or nonexistent cybercrime laws. Types of Cybercrime:In order to protect yourself you need to know aboutthe different ways in which your computer can be compromised and your privacyinfringed. In this section, we discuss a few common tools and techniquesemployed by the cyber criminals. This isn’t an exhaustive list by any means,but will give you a comprehensive idea of the loopholes in networks andsecurity systems, which can be exploited by attackers, and also their possiblemotives for doing so.
Explanation is as followes.Hacking: This is a type of crime wherein aperson’s computer is broken into so that his personal or sensitive informationcan be accessed. In the United States, hacking is classified as a felony andpunishable as such.
This is different from ethical hacking, which manyorganizations use to check their Internet security protection. In hacking, thecriminal uses a variety of software to enter a person’s computer and the personmay not be aware that his computer is being accessed from a remote location.Theft: This crime occurs when a personviolates copyrights and downloads music, movies, games and software. There areeven peer sharing websites which encourage software piracy and many of thesewebsites are now being targeted by the FBI. Today, the justice system isaddressing this cyber crime and there are laws that prevent people from illegaldownloading.Cyber Stalking: This is a kind of onlineharassment wherein the victim is subjected to a barrage of online messages and emails.
Typically, these stalkers know their victims and instead of resorting tooffline stalking, they use the Internet to stalk. However, if they notice thatcyber stalking is not having the desired effect, they begin offline stalkingalong with cyber stalking to make the victims’ lives more miserable.Identity Theft: This has become a majorproblem with people using the Internet for cash transactions and bankingservices. In this cyber crime, a criminal accesses data about a person’s bankaccount, credit cards, Social Security, debit card and other sensitiveinformation to siphon money or to buy things online in the victim’s name. Itcan result in major financial losses for the victim and even spoil the victim’scredit history.Malicious Software: These are Internet-basedsoftware or programs that are used to disrupt a network.
The software is usedto gain access to a system to steal sensitive information or data or causingdamage to software present in the system.Child soliciting and Abuse: This is also atype of cyber crime wherein criminals solicit minors via chat rooms for thepurpose of child pornography. The FBI has been spending a lot of timemonitoring chat rooms frequented by children with the hopes of reducing andpreventing child abuse and soliciting.Causes of Cyber Crime:Whereverthe rate of return on investment is high and the risk is low, you are bound tofind people willing to take advantage of the situation.
This is exactly whathappens in cyber crime. Accessing sensitive information and data and using itmeans a rich harvest of returns and catching such criminals is difficult.Hence, this has led to a rise in cyber crime across the world.History of Cyber Crime:Whencomputers and networks came into being in the 1990s, hacking was done basicallyto get more information about the systems. Hackers even competed against oneanother to win the tag of the best hacker. As a result, many networks wereaffected; right from the military to commercial organizations. Initially, thesehacking attempts were brushed off as mere nuisance as they did not pose along-term threat.
However, with malicious software becoming ubiquitous duringthe same period, hacking started making networks and systems slow. As hackersbecame more skillful, they started using their knowledge and expertise to gainbenefit by exploiting and victimizing others.Cyber Crime in Modern SocietyToday,criminals that indulge in cyber crimes are not driven by ego or expertise.Instead, they want to use their knowledge to gain benefits quickly. They areusing their expertise to steal, deceive and exploit people as they find it easyto earn money without having to do an honest day’s work.Cybercrimes have become a real threat today and are quite different from old-schoolcrimes, such as robbing, mugging or stealing. Unlike these crimes, cyber crimescan be committed single handedly and does not require the physical presence ofthe criminals.
The crimes can be committed from a remote location and thecriminals need not worry about the law enforcement agencies in the countrywhere they are committing crimes. The same systems that have made it easier forpeople to conduct e-commerce and online transactions are now being exploited bycyber criminals.Categories of Cyber CrimeCybercrimes are broadly categorized into three categories, namely crime against Individual Property GovernmentEachcategory can use a variety of methods and the methods used vary from onecriminal to another.Individual: This type of cyber crime can bein the form of cyber stalking, distributing pornography, trafficking and”grooming”.
Today, law enforcement agencies are taking this category of cybercrime very seriously and are joining forces internationally to reach and arrestthe perpetrators.Property: Just like in the real world where acriminal can steal and rob, even in the cyber world criminals resort tostealing and robbing. In this case, they can steal a person’s bank details andsiphon off money; misuse the credit card to make numerous purchases online; runa scam to get naïve people to part with their hard earned money; use malicioussoftware to gain access to an organization’s website or disrupt the systems ofthe organization. The malicious software can also damage software and hardware,just like vandals damage property in the offline world.Government: Although not as common as theother two categories, crimes against a government are referred to as cyberterrorism. If successful, this category can wreak havoc and cause panic amongstthe civilian population. In this category, criminals hack government websites,military websites or circulate propaganda. The perpetrators can be terroristoutfits or unfriendly governments of other nations.
How Cryptocurrency helpful for Cybercriminal: The address of cryptocurrency is encrypted withalgorithms and any one can’t access the actual portal on which the account ofthat particular Cryptocurrency exists.Now any hacker hack any system and demand some amountof money in the form of Cryptocurrencythen for saving the valuable data victim provides the particular amount inCryptocurrency.Victim only knows the address of Cryptocurrency thathacker provides and he/ she can’t reach the actual person who is working behindthe Task.Even hacker demanding and got the amount safelywithout any interruption thus Cryptocurrency helpful for Cybercrime.Recent case of it is as follows:Ransomware is a form of malicious software that locksup the files on your computer, encrypts them, and demands that you pay to getyour files back. Wanna Decryptor, or WannaCry, is a form of ransomware thataffects Microsoft’s Windows operating system.
When a system is infected, a popup window appears, prompting you to pay to recover all your files within threedays, with a countdown timer on the left of the window. It adds that if youfail to pay within that time, the fee will be doubled, and if you don’t pay withinseven days, you will lose the files forever. Payment is accepted only withBitcoin.How does it spread?According to the US Computer Emergency Readiness Team(USCRT), under the Department of Homeland Security, ransomware spreads easilywhen it encounters unpatched or outdated software.
Experts say that WannaCry isspread by an internet worm — software that spreads copies of itself by hackinginto other computers on a network, rather than the usual case of promptingunsuspecting users to open attachments. It is believe that the cyber attack wascarried out with the help of tools stolen from the National Security Agency(NSA) of the United States.Some forms of malware can lock the computer entirely,or set off a series of pop-ups that are nearly impossible to close, therebyhindering your work.What can be done to prevent this?The best way to protect your computer is to createregular backups of your files. The malware only affects files that exist in thecomputer. If you have created a thorough backup and your machine is infectedwith ransomware, you can reset your machine to begin on a clean slate,reinstall the software and restore your files from the backup. According toMicrosoft’s Malware Protection Centre, other precautions include regularlyupdating your anti-virus program; enabling pop-up blockers; updating allsoftware periodically; ensure the smart screen (in Internet Explorer) is turnedon, which helps identify reported phishing and malware websites; avoid openingattachments that may appear suspicious.
Who has it affected so far?It was first reported from Sweden, Britain and France,but Russia and Taiwan are said to be the worst hit, according to US media. Over75,000 systems have been affected. Major companies that have reported attacksare FedEx, Telefonica and National Health Service (UK).Conclusion: Cyber crime has risen exponentially across the worldin the past four years, causing insurmountable damage in its wake. One of themany reasons cyber crime models have been successful is the adoption of paymentmodels that facilitate anonymization of criminal activities. Cryptocurrencieshave given aspiring criminals enough confidence to expand their activities andlarge campaigns while expecting higher profits. No doubt Cryptocurrency is likea Laurie ticket or trading platform but also works as Catalyst forCybercriminal who are doing illegal work because it provides a unique platformfor receiving the money in the form of Cryptocurrency.
References:1. Bray, Jesse D.,”Anonymity, Cybercrime, and the Connection to Cryptocurrency” (2016).Online Theses and Dissertations. 344.
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