3 Software Developers Build Cybercrime Tool To Monitor Bitcoin Transactions
As the digital environment expands, cybercrime continues to threaten its existence with the rise of phishing attacks, scams, identity theft, and similar activities on blockchain networks. In addition, blockchain protocols and crypto assets like Bitcoin are increasingly becoming the target of cyber criminals who use them for illicit activities.
IMDEA Software Researchers Unveils Open-source Automated Tool
Due to the rising problems in the digital ecosystem, especially on blockchain platforms, three developers, Gibran Gomez, Juan Caballero, and Pedro Moreno-Sanchez, have launched a cybersecurity tracking tool. This tool will monitor the financial transactions of malicious groups that misuse Blockchain technology to commit crimes.
Accordingly, the researchers have tested the tool on about 30 malware platforms and over 7,500 Bitcoin addresses to ascertain its effectiveness. Furthermore, the new cybersecurity tracking tool will simultaneously allow seamless tracking of all Bitcoin-related transactions on an address.
This implies that if a particular Bitcoin address receives crypto assets from another address, which moves them to third-party custody, others could trace the entire movement of the funds.
As revealed by one of the developers, the merit of the tracker is that it can reproduce the whole process transparently, allowing all the results to be verified. Meanwhile, in addition to applying to Bitcoin users, law enforcement agencies can also use the tool to detect the transaction path between both malicious and deposit addresses used by operators.
With know-your-customer (KYC) policies, law enforcement agencies could identify which path to use as evidence to obtain a court order to dig more into an offender’s digital activities. Gibran Gomez, the lead developer, advises users to be conscious of security measures before initiating transactions to avoid exposure to cybercriminals.
“With close attention to details when conducting transactions, knowing the destination address is crucial to avoid falling victims of clippers lurking around the digital ecosystem,” Gomez added.
Using Cybersecurity to Reduce Hacking on Blockchains
With the decentralized nature of blockchain technology and its comprehensive use cases, integrating cybersecurity into blockchains would accelerate the security of the cryptocurrency industry in many ways.
However, cybersecurity application to blockchain protocols comes with technical barriers like performance, scalability, and smart contract vulnerability. Therefore, developing a blockchain system to strengthen the cybersecurity space is vital for limiting the spate of cyberattacks in the digital asset industry.
Numerous suggestions have stated that leveraging blockchain technology is the best way to improve cybersecurity. However, with cybersecurity, data breaches on blockchain protocols could be challenging to temper as the network nodes are cross-referenced to one another.
That said, building an intelligent blockchain to complement cybersecurity infrastructures is the first step to developing what is needed to fight the rising cyberattacks on crypto platforms. The crypto industry has seen multiple malicious attacks, with phishing scams the most widely used method by hackers.
Even with a robust security framework, preventing attacks on crypto trading platforms is easier said than done. Still, with the proper tools, individuals can safeguard their assets.
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