Hackers will drive cryptocurrency straight into the arms of the BankssteemCreated with Sketch.

in #cryptocurrency7 years ago (edited)

You may or may not have heard of the spate of hacker attacks recently.

Quite a few YouTube personalities in the crypto community have had their email/Bitcoin accounts stolen and lost enormous amounts of Bitcoin.
It has been suggested that this was perhaps a trick to hide or evade the Tax authorities. I can understand that thinking but I am afraid the attacks are true.
Anyone one who saw Craig Grant on videotelling of his misfortune can see he was under severe stress. Nervousness and facial sweating are hard to fake. One look on the face of Trevor James and one can see his disappointment was real. People who are suggesting they faked the hack are in a state of self denial. 

I was also hacked. 

No one wants to believe that such a hack can be true because quite simply it scares the living daylights out of us. It makes us feel unsafe and insecure.
I can tell right now, that everything you have seen on the movies about how good hackers are is true. Whoever hacked my computer was no amateur. I am not an expert on computers but I am no  novice either. I have been working with Macs since 1990 and yet I was totally helpless against these hackers who clearly targeted  me.

I do not mind telling you that the whole experience has shaken me to the core and it has taken me some time to get my life back in order, which is why I have not blogged for a while.

Almost all my email accounts were hacked and the passwords changed.

Once the hackers had my email accounts that then gave them one step towards taking over my cryptocurrency exchange accounts, such as Poloniex and Bitfinex. Both were cleaned out.
My smart phone was also hacked and was completely taken over. This meant that the two factor authenticator I had was also hopeless.

My iMac that I was using was also completely take over by the hackers in spite of the security I had on there. In desperation I wiped the Mac clean and reinstalled the system. Once the Mac was clean I went about creating new email accounts. However, within 20 minutes, the hackers had control over my computer again. WTF!!!
As I was in the process of creating new email accounts the hackers were actually blocking me while I was in the email website. Before this happened I would not have believed such as thing was even possible.
At that point I pulled the plug and went offline. 

I did not go back online for two days and I contacted my nephew for help. 

My nephew is a gifted programmer and regularly goes on “hacker-thons” - as he calls them.
I have spent an entire week with him learning all I can about hacking and how I can prevent such a thing from ever happening again. After all this intense learning I have finally discovered the truth of the matter. 

No one is safe on the web.

I am afraid the truth is that a clever hacker can find a way into your system no matter what you do. Edward Snowden already told us this, however, as will all things in life, we never believe it until it happens to us. Those of you who are reading this, whom have have never been hacked, will probably not believe me now either. 

All of us, including myself, go around living in a state of denial saying to ourselves ;“it will ever happen to me” or “the hackers will not target me because I do not have much of interest to them” 

Wrong: It is not a case of if, but when, they target you. It is only a matter of time.

My nephew showed me dozens of “hacking made easy” websites where total beginners can create trojan horses, worms, viruses and malware. These online hacker programs also make it possible to hack into any computer and take it over. I have discovered that there is a huge and growing, hacking for fun culture out there. Type in “ Hack Facebook” and you will soon find dozens of  specialised “Facebook hacking" websites that guarantee, yes guarantee, to hack into any Facebook account. A quick search on youtube and you can find teenagers running hacker courses and even demonstrating a live hack. What you will NOT SEE is any one them asking themselves if they should or not. They seem totally devoid of any thought of the hurt they cause to their victims. As far as they are concerned it is all part of the fun. My Facebook account was also hacked by the way.

I will not say how much or how little I lost in the hack against me but I will say that I have lost much confidence with the internet itself. The attack on my computer happened at lighting speed. I lost money yes, but that is nothing compared to the information I lost and also the confidence I have lost in internet security itself. 


And it is this fear factor that I believe could very well drive people to begin to trust the banks with their Bitcoin/altcoin security.
Think about it, if we do not feel safe storing crypto-coins on our own computers, then we will look towards more secure systems.
In the olden days when people used real gold coins, ordinary folk kept having their gold coins stolen from their houses. Goldsmiths, who made the coins, had more gold than normal folk and so they made special secure rooms to store their gold - "vaults". One day a some guy had is gold coins stolen and so got the idea to ask the goldsmith if he could keep his gold in is vault. The goldsmith agreed but charged the guy rent. And so started the beginnings of modern banking. Even today, the banks still have the best security in the world and you are also insured against losing your money to robbers or hackers.
Keeping your own crypto on your computer is not safe. The recent hacks have proved this. Anything is hackable.

The banks have spotted this and I am sure they have seen the opportunity.
The banks still have the best security in the world and you are also insured against losing your money to robbers or hackers. Mark my words,dont be surprised to see banks offering specialised “crytpyo-vaults” offering their customers to store their cryptocurrency there.

The whole point of Bitcoin and crypto-currencies was to have an alternative way against the corrupt banks.
The Governments have not been able to stop Bitcoin, the banks have not been able to stop Bitcoin, the European Monetary Fund has not been able to stop Bitcoin, but now hackers could literally drive people back to the very corrupt system we all wanted changed. How ironic and how tragic

Who the hell are you?

How can one prove whom one is in a world were your entire identity can be stolen so easily?

When your email account is stolen, and the hackers change your password, and then change the phone number on that email account too, how can you then prove to the email company that it is “your” account?  
The answer is, you can’t. 

I have been in intense negotiations with two email companies giving them proof after proof of who I am. However now they both decided that, what I have provided , is NOT good enough. And so I must accept that I have lost those email accounts for good. In one sense I am happy that they are so strict with such things but on the other hand, it means the hackers now own my email accounts for life and there is nothing I can do about it.

Just being on the internet has now become a risk in itself.

Think about it. Imagine someone got hold of your Steemit password. That person could post whatever they wanted and people would believe it was you. Or they could drain your account and there is nothing you can do about it.  Edward Snowden was right. We are not safe. 

The C.I.A or the F.B.I may well have the capability to track us and hack us, but in theory they have to abide by the rules of law. OK, thanks to Snowden, we all know they break those rules. However, I can’t believe every person working or the F B I or the C.I.A can be a corrupt person. After all, Snowden himself came from there. In my younger days I once considered a career in the FBI myself because ei wanted to fight corruption. Thereofe, in theory people applying for such agencies must initially have good intentions. Workers are accountable to their superiors too. But who are the hackers accountable to?
Is it the case that we should accept that hackers now own the internet?
That they, in effect, have the keys to our lives online?


The weakest link in the chain is human-beings

Say for example someone works for a reputable anti-virus company such as Norton anti virus. I should imagine that such a person working there has high qualifications and had good references. However, as we know, faking references is easy in the hands of a clever hacker. And so, who can guarantee that an employee does not install a worm,  Trojan horse, or a virus onto the virus software. I mean, honestly, how would would we know? And then we go and instal it onto our computers.
Ok, let us say, for the benefit of the doubt, that “all” the people working in an internet virus security company are in fact, honest. Do not these honest employees go out socialising on the weekends? And whom do they speak to or gossip with when they have had a few drinks?  See what I mean?
Times that security risk in a company employing hundreds or even thousands of employees and you begin to see that keeping security ultra tight is damn near impossible. Any one of these programmer employees who work for reputable program companies, including Apple, could be a secret weekend hacker. I actually suspect that my Mac has hacked though my Apple ID account. How else's could anyone have hacked my Mac 20 minutes after I had wiped it clean and reinstalled?  
You see, the whole thing is based on trust.
However, trusting the internet is very dangerous and it is something we all seem totally complacent about.

The entire internet security is based on two things. False trust and a denial that we ourselves will never be hacked

So what can be done?

Sadly very litte at this time.
However, after I calmed down from this whole ugly event and managed to actually get a nights sleep, I began to think more clearly. It it my nature to try and solve puzzles and problems.
And so I began to look at the situation from a different perspective.

Instead of asking: What can a hacker do? I started asking: What can a hacker NOT do?

If I accept that I live in an environment where the keys to my house can be stolen at any time, how can I survive in such an uncertain environment?
The answer is to create an environment where uncertainty plays to your advantage.

I am grateful this has happened because now I have woken up to the reality of the false security on the internet-
I am still somewhat paranoid and I am quite aware that I could be hacked again at any time, but now Iknow there are some things I can do to slow them down and make thinks some more difficult.
Many years ago I did a business course and on that course I sat next to a guy who had recently come out of  jail and wanted to go straight. He had served three years for car theft. I asked him what I could do to stop thieves from stealing my car. He said: "First make sure there is nothing of value in the car. Have the best security system on your car. A thief will still be able to break in, but if there are two cars parked next to each other and one has really good security and the other has none, the thief will always go for the car with none"

Your security is only as good as your password.

There are clever code breaking tools out there that can break a simple code in three minutes flat. However, a code which has between 16 to 20 characters long, that contains comas, fullstops, semi colons numbers, is damn hard to crack.
Keep all passwords offline.
Write them down on paper.
If you use a USB to store your passwords, then unhook yourself from the web before you plug it in.
Make sure you have full oversight of what you have in your email account. Keep a track of what emails you have sent and when and whom have sent emails to you. This was one of the questions my email company asked me.

Of course,I should not tell you of other things I have leanred about internet security because I can not trust any of you can I?  And this is the final sad thing about this whole sordid uncertain situation we find ourselves in.
Who of us want a world where we can not trust anyone we speak too and have to prove who we are?
The whole expereince has made me appreciate my friends so much more. My life long fiends who I went to school with. They know me. I do not need a password to access thier friendship and I do not need to show them proof of ID.
I have been told that it has been the last two years that hacking has escalated and it is only going to get worse.
The hackers are winning and they are in charge. Unless this changes were will be serious and tragic consequences to freedom online. Hackers will not only drive us back into the arms of the banks but also into the arms of Governments as we demand for them to take action.
Check your security and passwords now and make sure you have done everything you can to make yourself as secure as possible.

If you liked what I wrote please upvote me. A re-steem I see as a gift.
Thank you for visiting my blog and a warm welcome back next time.

Sort:  

Thought provoking post, scary, how to avoid? Please start a good series on this if you can....

I may consider that.

Jesus, Arthur.

They got you again right after the wipe? That is some damn professional work and they clearly had you on their radar.

I have studied a little about Cybersecurity Penetration Testing. It is studying the hackers methods and trying to find loopholes that aren't covered. This gave me insight into how fragile our security is. The truth is that with every layer and App you add to the system, you add 10 potential new security holes. And then there are the most dreaded zero-day-exploits - .On rare occasion hackers might be able to find a security hole within Windows/Apple that the company itself is not aware of. By the way, when an company launches an app to production, before they go live they invite cybersecurity officials to do extensive penetration testing, basically let them try to "hack" the app before the launch so that they can spot something and fix it, before a real hack disaster happens when its live.

Anyway, I'm sure you are tripple secured now and back on your feet.
It's good to have you back.
You really had me worried when you disappeared on facebook.

Warm Greetings,
Nick

Hi Nick, yeah good to be back and very happy to hear from you. You know I needed some time to come to terms with the whole event. Two days after the hack I suddenly had an after affect and became quite sick with shock. We artists are sensitive features you know lol
They hacked my Facebook while I was actually changing my password on Facebook. I could see them doing it and there was nothing I could do. This was a low thing to do in my opinion. I mean OK, steal my crypto but why hack my Facebook, what was there to gain from that?
For sure they had me on their radar and I will be double careful what I say on forums and youtube channels in future. As I say, I am glad it has happened because I have learned much and am extra vigilant with security now. It will be a while before I get my confidence back though. I am so paranoid ha ha.

This is the reason I am so passionate about Internet privacy. Now continue your thought process, and think how teens love to use Snapchat & Pokemon Go apps. With these apps they are continuously exposing their location to the web in real-time. What if some monster was out to harm them? He would need to look no further. But people don't give a damn, the throw their sensitive data at social media apps like it's a contest.

Very very dangerous in my opinion.

I so agree with you Nik. I am constantly reading about internet security now and will try my very best to to keep ahead as much as I can. People are so naive about their online security. I was not naive but I certainly was not as up to date as I am now.

Sorry to hear that happened to you. Being online is definitely risky. Even if you are careful with how you protect your computer and phone, your identity could be compromised if your, bank, insurance company, department store etc are hacked.

Even the police now have the ability to intercept cell phone transmissions. I think they are called stingrays and they are basically a device that spoofs a tower. Your cell phone connects and if you aren't encrypted they can see everything you are doing.

https://en.m.wikipedia.org/wiki/Stingray_phone_tracker

Hello my friend, yes you are right about those stingray things - they are even mounting them onto drones and flying them over cities. I keep nothing on my phone or computer anymore. I will not risk downloading anything and any photos of texts I store them off line and then delete them from my phone. The real risk is all the phone numbers of friends and relatives the are stored on there. I am working on having a little note boot for phone numbers instead of having them on the iPhone. It seems the old ways are becoming more secure. Nice to hear from you @canadianrenegrade.

Hey @arthuradamson, I nominated you for the #sevendaybnwchallenge. My other nominees for some reason did not get a notification when I tagged them so you may not have either. I hope you are up for the challenge and I am sure with your talents they will be worth checking out.

Hey thanks, I will have a look into it, cheers!

I cannot agree with your argument that hackers will drive crypto users back to the banks. The banks themselves are regularly hacked.

Search on "banks hacked"
https://www.startpage.com/do/search?query=banks+hacked

Governments will not save you either, they are more sloppy than the banks are with cyber-security.

Think Wikileaks, Edward Snowden.

The standard institutions are mostly powerless because they simply do no comprehend the issues, as they have vested interests dictating their policies over the needs of voters.

Think the death of Net Neutrality.

Demanding governments to take action invites the Orwellian Big Brother Police State in through the front door. They themselves are running the biggest hacking operations that exist. As Edward Snowden pointed out, these multiply the hacking problem, because once discovered by non-government hackers, these are backdoored reused.

Rather, the course of action is, as you were forced to do, educate yourself and take action.

Phew, that sounds like a dreadful experience for sure. I had a problem a few years ago with a virus I caught on deviantart... a site where I definitely would not have expected to get infected. That already gave me some major headaches and made me pretty paranoid.

I was wondering what happened, since you were gone for so long. I thought, maybe you went for a vacation (always thinking of something good).. I'm sorry it was for such bad reasons. Glad this is over for you and you are back on track!

Thank you for the info and the advice on staying safe(r) on the web.

Nice to hear from you Reinhard - I understand you being paranoid after getting that virus - I am feeling a little like tat at the moment. At the moment every time I pay a bill to my bank my hands start shaking thinking I am being watched or suddenly a hacker will take over my computer again. I am working with it but my confidence has certainly been shaken. I am far better with security now but even so clever hackers can get in anywhere. The fact is the web was not created as a secure place from the beginning.
I need a holiday now lol

The problem with banks is that they hide the fraud from the users.

You pay 12% interest, and the vendor pays 3-10% per transaction for the convenience of using a CC.

The fees are this high because of the amount of CC fraud.
Further, if the vendor has to live in constant fear of clawbacks. If they process a fraudulent transaction, they may lose all of that money, as well as the product they sold.

One motorcycle dealer I have heard of no longer accepts CCs because he cannot afford to cover a loss if he gets defrauded.

So, the banks are not a safe haven, they are just playing an insurance fraud game. And thus, you may be correct, that customers flock to them, because they only see the shiny lobbies, and not the rot just under the surface.

You may well be right, and I I agree that they surely hide their fraud from their customers. However, ordinary folk in the crypto world. especially beginner, get put off easily and if a newbie got hacked they would either never come back or go to the banks. Only yesterday I saw an announcement that my local bank was holding an ideas meeting to offer security for Bitcoin holders.

I have heard this as well.

I also saw this today.

https://www.computerworld.com/article/3239047/apple-mac/what-to-do-about-apples-shameful-mac-security-flaw-updated.html

Doesn't help to have the OS providers leaving holes like this either.....

Jesus that is not good publicity for Mac considering they have the reputation for being the most secure computers. Come back Steve Jobs. When he was there he was a free about perfection and would not let anything out until he was personally satisfied. Now he has gone perhaps things have become a bit more relaxed. This is how it is with all empires I guess. An empire is only as good as its head at the time.
Thanks for the update.

"Mac... reputation for being the most secure computers." That is the myth you were sold and you bought into. In tech circles it was widely known long ago how terrible Mac security was. I still recall 10 years ago, Mac users smugly sneering at Windows users, because "Macs don't have viruses".

Mac's security problems already existed when Steve Jobs was alive. He could not save you then, nor could he now. Security was not his interest, rather slick looking products and a brand name.

The Mac fanboy mentality of the near zealous belief in the infallibility of Apple products is what gets people in trouble with regards to security.

No system will be 100% secure if it is profitable for people to hack it. Windows users suffered early on because of this. There were simply more Windows users, which meant more profit for the hackers. As Mac became more popular, it became a more popular (profitable) target for hacking.

The Russians woke up to how insecure digital information storage was years ago, and went back to typewriters for super top secret information.

Russian guard service reverts to typewriters after NSA leaks
https://www.theguardian.com/world/2013/jul/11/russia-reverts-paper-nsa-leaks

The answers lie in part of what you outlined in your article. Your own actions; being informed and mindful of your information security.

I agree with much of what you say. The whole matter has awoken me to just how insecure the net really is.
I admit I somewhat bought into he belief that Macs were more secure - I don't believe that anymore. The truth is any computer can be hacked if hackers have enough time or will to do it. I have spent much time recently educating myself - as well as working together with my nephew who is a gifted programmer - and it is much easier o ask - what can hackers NOT DO, rather than what they can do? - and go from there.

With regards to my article, I just wish to make it clear that I am was not saying that I want help from the banks or the Govt, I got into Bitcoin because I was against the banks in the first place. I was one of the few who were actively protesting against the banks corruption way back in 1995.
What I am saying is that the new people coming into the crypto space could easily be drawn towards the banks to store their Bitcoin/altcoins. The banks will use the fear of being hacked as tool to draw newbie customers to them
In fact, as I write this, I saw an announcement in my local newspaper that two local bank are to give a talk offering such a service - so I was right, it has already begun.
The paranoid side of me half believes that it is in the interest of the big banks to actually fund hackers to hack peoples accounts in order to read this fear. As I said in my article, one thing the banks have over us storing our own crypto is insurance. Yes the banks are hacked and swindled all the time but they have insurance and can simply print more money when they want. This all adds to inflation of fiat currency of course.
What I am saying is that, I have never seen the banks or the Govt as a threat to Bitcoin but net security certainly is. If people can not feel secure at all with holding or using their own crypto as a store of value or as a currency then it will certainly lead to its downfall.

Without security there can be no solid foundation on which to build. Why do you think civilisations built castles? The more hacks that happen the less secure people will feel. which is why I say that hacking is the biggest threat to Bitcoin/allcoin and why it is in the banks interest to secretly fund such attacks. If we want mass adoption, ordinary non-tech savvy people (like your grandmother) have to feel they can use it and safely, otherwise it will always remain in the hands to the intelligent tech savvy/coder savvy people.

I predict that we will very soon see banks offering secure vaults for people wit Bitcoin and offering insurance in case they are stolen.
I thank you for you response to my article @lepplaw

The fact is, crypto is not yet ready for prime time mass adoption. So the maxim, buyer beware applies.

Who ever provides a consumer friendly approach to crypto will make a great deal of money. Some one will. You can bank on it. ;-)

get a bloody physical wallet on a removable flash drive. simples.

And while the hacker has 100% control over your computer...what then?

well don't use an unsecured computer. you can use bitlocker on the removable drive to encrypt it, and also use a smart key usb flash drive to log onto your computer. hell you could go as far as using a biometric system to protect your computer. don't use on any other 3rd party computer. only use the one that you now is secure and encrypted.

All that is great advice - but one I am talking about someone taking over your computer remotely- My point is it seems to me that we have come to the point were one has to now take a course on net security just to go online. Hackers have made it unsafe for ordinary folk who falsely believe they are secure.
I thought my computer was secure. When the hackers got hold of my Mac I actually wiped it clean and re-installed the system- within 15 minutes they had control over my Mac again. Is the web only for tech for now then?

sorry for the crap you've gone through, but you are using a mac. ios has very week security. you could try rotating your ip, either turn your router off for an hour or ask your isp to do it. use paid firewalls from avast or similar reputable company. but unless you get rid of the mac and use a pc, there isnt much you can do.

Oh my friend that's really tragic. I'm really very very sorry for your loss. I wish I could do something for you. But yes it's true I can't. The world is full of good and bad people. Bad people are more than good. So negativity is everywhere, but people like you are the light in the darkness. Please be strong and stand like a wall in front of culprits. We are with you. I can't get back your loss but my prayers and best wishes are always with you. Stay safe!

Thank you for your kind words and your prayers my friend they help me to stay strong. In life we are often tested in the up and down of lines trials. As long as I have good people around me then I will survive and become stronger. I refuse to have hatred in my heart, even to the who harm me.

Hi @arthuradamson your predictions are TRUE. IOTA is flying now..............

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