What is A Cryptocurrency Dusting Attack?; Explanation for Beginner

A dusting attack refers to a new kind of malicious activities where hackers and scammers try and break the privacy of cryptocurrency users by sending tiny amounts of coins to their wallets. While blockchain technology is considered secure because of its cryptographic roots. The absolute truth is that several security issues have passed through the market. One mysterious but mentioned security issue is dusting attack. A form of offensive “red hat” strategy performed to data re-identification the cryptocurrency wallets and their owners. 

Let's check out. What is a cryptocurrency dusting attack? How does it work? And how you can avoid it? Before we explore a dusting attack, we first have to get to grips with what “dust” is. Dust refers to a teeny-tiny amount of cryptocurrency that's usually left over after a transaction completes. A cryptocurrency dusting attack is when an agent sends tiny amounts of dust to random addresses. 

This situation may be a hacker trying to sniff out their next target or a government official trying to break the anonymity that cryptocurrencies provide. When the dust lands in someone's account, it's so tiny that the victim will likely NOT notice it. The dust will then sit around in the wallet as an Unspent Transaction Output (UTXO) waiting to be spent. 

Once they have tested a wallet, they will then track data on the activity of the affected accounts to uncover that organizations or individuals they are associated with. Hackers may then be able to use the information in phishing scams. Because cryptocurrency transaction information is public knowledge, it's essential to protect yourself, your holdings and your anonymity. 

In addition to ensuring anti-spam and anti-virus protection for your wallet, consider the following steps. 

1. If You Think You've Been Dusted, Don't move the dust!.

Look for a wallet apps that allow you to “mark” small, unknown deposits in your wallet to prevent them from being used for other transactions. 

2. Monitor Your Balance, 100% of all the time

If a small amount of Satoshi suddenly appears in your crypto wallet, you might have been dusted. It's a good idea to find a wallet app with a push notification, which tell you when you receive new funds. 

3. Don't Give Out Private Information - EVER! 

If a website - or other airdrop entity wants more than your wallet address in exchange for tokens or coins, it's a red flag. So be careful of handling out your cryptocurrency information as you would be off providing fiat bank account log-in data. 

As you can see, dusting attacks are not that serious. The process boils down to transferring small amounts of cryptocurrency to various exchanges to track transactions and spot which interconnected addresses. 

Worry not! There are far worse security threats out there, like a person on the internet knowing your name is the most negligible security threat of them all. As long as you do not hold the belief that the other person has any form of power, you are good to go. 

Read also: Why Cryptocurrency is Better Than  Cash

Reference: https://youtu.be/Bcwz354XIu8 

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