Abstract: need for a central entity, thus ensuring that

 

Abstract:                     

Nowadays, media coverage about the high cost of Cryptocurrency
link Bitcoin certainly attracted the attention of everyone. Bitcoin is the most
commonly known virtual digital currency that uses cryptography.cryptocurrency
is one application of a concept known as blockchain technology. Ethereum,
Ripple, Litecoin, Dogecoins and Feather coins are some other forms of
Cryptocurrency. Cryptocurrency can be attached with the concept of mining a
legal way to earn a small amount of Cryptocurrency. The Basic principles for
all cryptocurrencies mining are almost same and are introduced in this paper.

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As cryptocurrency systems are not bound to a
particular location or jurisdiction, the integrated payment network has a
global reach and can be used to transfer funds within a short time.  how many people use cryptocurrency is
impossible to know precisely as a person may have many cryptocurrency wallets
and exchange accounts for different cryptocurrencies. Cryptocurrencies like
bitcoin has transformed the illegal market and trade in illegal
goods.cryptocurrencies in recent years has become a popular target for
criminals as they handle and store large amounts of cryptocurrencies also
cryptocurrency make illicit transactions easier than it was customary
previously.

Here issues of security of cryptocurrencies,
cybercrime and latest cases of cybercrime related with cryptocurrencies are
discussed.

 

Keywords:
Cryptocurrency, Cybercrime, Cryptocoin Mining, Bit Coin,Hacking .

 

Introduction: 

World economy and trade has seen a positive growth in
the digital cryptocurrency. Internationally renowned cryptocurrency is bitcoin.
Most of the countries in the world have 
a positive approach on the accptance of cryptocurrency. In India
cryptocurrency is neither accepted asa legal currency nor declared as illegal.
Protected, instant and Secure transactions by cryptocurrency like bitcoin have
proven to be attractive for cybercriminals.

 

Cryptocurrency:

A cryptocurrency is a
digital or virtual currency designed to work as a medium of exchange that uses
cryptography, the process of converting legible information into an almost
uncrackable code, to track purchases and transfers. A cryptocurrency is
difficult to counterfeit because of this security feature. A defining feature
of a cryptocurrency, and arguably its most endearing allure, is its organic
nature; it is not issued by any central authority, rendering it theoretically
immune to government interference or manipulation.

Cryptography was born
out of the need for secure communication in the Second World War. It has
evolved in the digital era with elements of mathematical theory and computer
science to become a way to secure communications, information and money online.

Bitcoin, created in
2009, was the first decentralized cryptocurrency. which was created by an
anonymous individual or group known as “Satoshi Nakamoto.” The currency uses
SHA-256, a cryptographic system designed by the U.S. National Security Agency.

 

 Satoshi Nakamoto didn’t set out to invent
cryptocurrency; rather, the goal was to create a digital cash system where
transactions could be validated without the need for a central entity, thus
ensuring that transactions would be anonymous. The resulting technology, known
as blockchain, birthed bitcoin and every cryptocurrency that came after it.

Cryptography is used to
protect information by converting it into an unreadable format (encryption),
called cipher text. Each such encryption is secured by a unique key. Only those
who 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-key
systems that use a single key that both the sender and recipient have, and

ii. public-key systems
that use two keys, a public key known to everyone and a private key that only
the recipient of messages uses.

 

How to mine Cryptocurrency:

Mining cryptocoins is
an arms race that rewards early adopters. You might have heard of Bitcoin, the
first decentralized cryptocurrency that was released in early
2009. Similar digital currencies have crept into the worldwide market
since 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 the
basics properly.

Cryptocurrency Benefits
and Drawbacks:

Cryptocurrencies make it easier to transfer funds
between two parties in a transaction; these transfers are
facilitated through the use of public and private keys for security purposes.
These fund transfers are done with minimal processing fees, allowing users to
avoid the steep fees charged by most banks and financial
institutions for wire transfers.

Central to the genius of Bitcoin is the block
chain it uses to store an online ledger of all the transactions that have ever
been conducted using bitcoins, providing a data structure for this ledger that
is exposed to a limited threat from hackers and can be copied across all
computers running Bitcoin software. Many experts see this block chain as having
important uses in technologies, such as online voting and crowdfunding, and
major financial institutions such as JP Morgan Chase see potential in
cryptocurrencies to lower transaction costs by making payment processing more
efficient.

However, because cryptocurrencies are virtual and
do not have a central repository, a digital cryptocurrency balance can be wiped
out by a computer crash if a backup copy of the holdings does
not exist. Since prices are based on supply and demand, the rate at which a
cryptocurrency can be exchanged for another currency can fluctuate widely.

Cryptocurrencies are not immune to the threat of
hacking. In Bitcoin’s short history, the company has been subject to over 40
thefts, including a few that exceeded $1 million in value. Still, many
observers look at cryptocurrencies as hope that a currency can exist that
preserves 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 or
network-connected device, such as a mobile phone. The Department of Justice
divides cybercrime into three categories: crimes in which the computing device
is the target, for example, to gain network access; crimes in which the
computer 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 the
internet has enabled an increase in the volume of cybercrime activities because
there is no longer a need for the criminal to be physically present when
committing a crime. The internet’s speed, convenience, anonymity and lack of
borders 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 be
committed by individuals or small groups, as well as by criminal organizations
that are often spread around the world and committing crimes on an
unprecedented scale. Cybercrime has the unusual characteristic that the victim
and the perpetrator may never come into direct contact; in many cases,
perpetrators and victims are separated by thousands of miles. To further reduce
the chances of detection and prosecution, cybercriminals often choose to
operate in countries with weak or nonexistent cybercrime laws.

 

Types of Cybercrime:

In order to protect yourself you need to know about
the different ways in which your computer can be compromised and your privacy
infringed. In this section, we discuss a few common tools and techniques
employed 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 and
security systems, which can be exploited by attackers, and also their possible
motives for doing so. Explanation is as followes.

Hacking: This is a type of crime wherein a
person’s computer is broken into so that his personal or sensitive information
can be accessed. In the United States, hacking is classified as a felony and
punishable as such. This is different from ethical hacking, which many
organizations use to check their Internet security protection. In hacking, the
criminal uses a variety of software to enter a person’s computer and the person
may not be aware that his computer is being accessed from a remote location.

Theft: This crime occurs when a person
violates copyrights and downloads music, movies, games and software. There are
even peer sharing websites which encourage software piracy and many of these
websites are now being targeted by the FBI. Today, the justice system is
addressing this cyber crime and there are laws that prevent people from illegal
downloading.

Cyber Stalking: This is a kind of online
harassment wherein the victim is subjected to a barrage of online messages and emails.
Typically, these stalkers know their victims and instead of resorting to
offline stalking, they use the Internet to stalk. However, if they notice that
cyber stalking is not having the desired effect, they begin offline stalking
along with cyber stalking to make the victims’ lives more miserable.

Identity Theft: This has become a major
problem with people using the Internet for cash transactions and banking
services. In this cyber crime, a criminal accesses data about a person’s bank
account, credit cards, Social Security, debit card and other sensitive
information to siphon money or to buy things online in the victim’s name. It
can result in major financial losses for the victim and even spoil the victim’s
credit history.

Malicious Software: These are Internet-based
software or programs that are used to disrupt a network. The software is used
to gain access to a system to steal sensitive information or data or causing
damage to software present in the system.

Child soliciting and Abuse: This is also a
type of cyber crime wherein criminals solicit minors via chat rooms for the
purpose of child pornography. The FBI has been spending a lot of time
monitoring chat rooms frequented by children with the hopes of reducing and
preventing child abuse and soliciting.

Causes of Cyber Crime:

Wherever
the rate of return on investment is high and the risk is low, you are bound to
find people willing to take advantage of the situation. This is exactly what
happens in cyber crime. Accessing sensitive information and data and using it
means 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:

When
computers and networks came into being in the 1990s, hacking was done basically
to get more information about the systems. Hackers even competed against one
another to win the tag of the best hacker. As a result, many networks were
affected; right from the military to commercial organizations. Initially, these
hacking attempts were brushed off as mere nuisance as they did not pose a
long-term threat. However, with malicious software becoming ubiquitous during
the same period, hacking started making networks and systems slow. As hackers
became more skillful, they started using their knowledge and expertise to gain
benefit by exploiting and victimizing others.

Cyber Crime in Modern Society

Today,
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 are
using their expertise to steal, deceive and exploit people as they find it easy
to earn money without having to do an honest day’s work.

Cyber
crimes have become a real threat today and are quite different from old-school
crimes, such as robbing, mugging or stealing. Unlike these crimes, cyber crimes
can be committed single handedly and does not require the physical presence of
the criminals. The crimes can be committed from a remote location and the
criminals need not worry about the law enforcement agencies in the country
where they are committing crimes. The same systems that have made it easier for
people to conduct e-commerce and online transactions are now being exploited by
cyber criminals.

Categories of Cyber Crime

Cyber
crimes are broadly categorized into three categories, namely crime against

Individual
Property
Government

Each
category can use a variety of methods and the methods used vary from one
criminal to another.

Individual: This type of cyber crime can be
in the form of cyber stalking, distributing pornography, trafficking and
“grooming”. Today, law enforcement agencies are taking this category of cyber
crime very seriously and are joining forces internationally to reach and arrest
the perpetrators.

Property: Just like in the real world where a
criminal can steal and rob, even in the cyber world criminals resort to
stealing and robbing. In this case, they can steal a person’s bank details and
siphon off money; misuse the credit card to make numerous purchases online; run
a scam to get naïve people to part with their hard earned money; use malicious
software to gain access to an organization’s website or disrupt the systems of
the 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 the
other two categories, crimes against a government are referred to as cyber
terrorism. If successful, this category can wreak havoc and cause panic amongst
the civilian population. In this category, criminals hack government websites,
military websites or circulate propaganda. The perpetrators can be terrorist
outfits or unfriendly governments of other nations.

 

How Cryptocurrency helpful for Cybercriminal:

 

The address of cryptocurrency is encrypted with
algorithms and any one can’t access the actual portal on which the account of
that particular Cryptocurrency exists.

Now any hacker hack any system and demand some amount
of money in the form of  Cryptocurrency
then for saving the valuable data victim provides the particular amount in
Cryptocurrency.

Victim only knows the address of Cryptocurrency that
hacker provides and he/ she can’t reach the actual person who is working behind
the Task.

Even hacker demanding and got the amount safely
without any interruption thus Cryptocurrency helpful for Cybercrime.

Recent case of it is as follows:

Ransomware is a form of malicious software that locks
up the files on your computer, encrypts them, and demands that you pay to get
your files back. Wanna Decryptor, or WannaCry, is a form of ransomware that
affects Microsoft’s Windows operating system. When a system is infected, a pop
up window appears, prompting you to pay to recover all your files within three
days, with a countdown timer on the left of the window. It adds that if you
fail to pay within that time, the fee will be doubled, and if you don’t pay within
seven days, you will lose the files forever. Payment is accepted only with
Bitcoin.

How does it spread?

According to the US Computer Emergency Readiness Team
(USCRT), under the Department of Homeland Security, ransomware spreads easily
when it encounters unpatched or outdated software. Experts say that WannaCry is
spread by an internet worm — software that spreads copies of itself by hacking
into other computers on a network, rather than the usual case of prompting
unsuspecting users to open attachments. It is believe that the cyber attack was
carried 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, thereby
hindering your work.

What can be done to prevent this?

The best way to protect your computer is to create
regular backups of your files. The malware only affects files that exist in the
computer. If you have created a thorough backup and your machine is infected
with ransomware, you can reset your machine to begin on a clean slate,
reinstall the software and restore your files from the backup. According to
Microsoft’s Malware Protection Centre, other precautions include regularly
updating your anti-virus program; enabling pop-up blockers; updating all
software periodically; ensure the smart screen (in Internet Explorer) is turned
on, which helps identify reported phishing and malware websites; avoid opening
attachments 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. Over
75,000 systems have been affected. Major companies that have reported attacks
are FedEx, Telefonica and National Health Service (UK).

Conclusion:

Cyber crime has risen exponentially across the world
in the past four years, causing insurmountable damage in its wake. One of the
many reasons cyber crime models have been successful is the adoption of payment
models that facilitate anonymization of criminal activities. Cryptocurrencies
have given aspiring criminals enough confidence to expand their activities and
large campaigns while expecting higher profits. No doubt Cryptocurrency is like
a Laurie ticket or trading platform but also works as Catalyst for
Cybercriminal who are doing illegal work because it provides a unique platform
for 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.

2.     
https://www.digit.in/technology-guides/fasttrack-to-cyber-crime/the-12-types-of-cyber-crime.html

3.     
https://en.wikipedia.org/wiki/Cryptocurrency

4.     
 

 

 

 

 

https://www.brighttalk.com/webcast/13713/211957/cryptocurrencies-a-catalyst-driving-cyber-crime

 

https://thenewsfeed.today/tags/cryptocurrency-cybercrime-667013.html

 

https://thenewsfeed.today/tags/cryptocurrency-and-cybercrime-666382.html

 

https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=5&cad=rja&uact=8&ved=0ahUKEwjKgfOP29vYAhWFHZQKHdIbDCkQFghEMAQ&url=https%3A%2F%2Fencompass.eku.edu%2Fcgi%2Fviewcontent.cgi%3Farticle%3D1342%26context%3Detd&usg=AOvVaw0pR3tfdeTA_kMs1gftkRpN

 

http://fortune.com/2017/09/19/cryptocurrency-bitcoin-cyber-extortion/