CO4515 Assignment 2: Cryptocurrency Security in Cybercrime Research

This research paper explores the intersection of cryptocurrency and cybercrime, focusing on security vulnerabilities and mitigation strategies. It begins with an abstract defining cryptocurrency and its importance, followed by an introduction outlining the relevance of the topic. The paper delves into research questions related to botnet miners, ransomware attacks, and various attack vectors used to exploit cryptocurrencies. It examines specific threats such as botnet miners and ransomware, providing mitigation techniques. Furthermore, it analyzes attack vectors like mining pool attacks and double-spending attacks, and discusses theoretical attacks on cryptocurrencies like wallet theft and double-spending. The paper also compares existing cryptocurrencies like Bitcoin, Bitcoin Cash, Ripple, Stellar, Ether, and Litecoin, highlighting their advantages and disadvantages. The research concludes with a discussion on the importance of cryptocurrency and its various uses, including low-cost transfers and private transactions, while also acknowledging its vulnerabilities and the need for robust security measures. The paper is a comprehensive analysis of the current state of cryptocurrency security in the face of cybercrime, providing a valuable resource for understanding the risks and potential solutions.

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Abstract— A cryptourrency is an asset that is digital and is
designed in order to work as a medium to secure the
transactions that are financial. The cryptocurrency is very
important and is used by many financial institutions.
Cryptocurrencies use block chain and it is one of the emerging
technologies that are used by millions of people worldwide. The
future scope of blockchain is very wide but that of
cryptocurrencies are not because the cryptocurrencies need
time in order to be accepted by the users. People do not like to
investment in cryptocurrencies because they are vulnerable and
it raises the risk of loss. The research paper discusses about the
cryptocurrencies and security. The various attack vectors that
are used in order to breach the cryptocurrencies are discussed
and the mitigation strategies of these attacks are discussed in
brief in the research paper. The research concludes with the
future scope of the cryptocurrencies and some limitations of the
cryptocurrencies.
Index Terms— cryptocurrency, bitcoin, botnet miners,
ransomeware, bitcoin, litecoin.
I. INTRODUCTION
A cryptocurrency is currency that is virtual or digital and
it is secured using cryptography. This is the reason that
makes it impossible to forge. Several cryptocurrencies are
decentralized networks and are based on technology of
blockchain. The blockchain technology is a ledger that is
distributed and a network of systems of computer that are
dissimilar enforces it.
An important functionality of cryptocurrencies is that the
cryptocurrencies are not issues by any vital authority,
rendering the cryptocurrencies theoretically immune to the
interference or manipulation of the government. From
ransomware to the frauds of email, cybercrimes can take
several forms. In the modern years, cryptocurrencies has
become one of the important materials for criminals in order
to launder money. In order to change this, rules and
regulations must be put in place in order to stop the
cybercriminals from stealing money via the crypto market.
The research paper discusses about the
cryptocurrencies and the security. The research paper also
discusses about the various research questions and the related
topics that are associated with the cryptocurrencies and
security.
II.ANALYSIS OF RELATED WORKS
1. Research Questions
Several topics are related to the cryptocurrencies and
security. Various research questions are related to the
cryptocurrencies and security. The research questions are as
follows:
 How do the bitcoin botnet-miners operate and measures
can be taken against the bitcoin botnet?
.
 What are the malware that have been used by the
cybercriminals in order to obtain the cryptocurrencies, the
vulnerabilities that the malware exploit, and the mitigation
techniques that can be adopted?
 What are the attack vectors that have been used in order to
exploit cryptocurrencies and how to counter the attack
vectors?
 What attacks on the cryptocurrencies have been identifies
theoretically and how could these attacks can be avoided?
 What has evolved and the differences and the similarities
between the existing cryptocurrencies?
 What incidents are affecting the cryptocurrencies, the
risks, and the mitigations?
III. CRYPTOCURRENCIES AND SECURITY
1. Botnet Miners
Cryptocurrencies is a currency that is digital and they are
secured by cryptocurrency. However, these days the security
of the cryptocurrencies are hampered. The attackers use
various techniques in order to counterfeit the
cryptocurrencies. The mining of cryptocurrency is very
costly and periodically rewarding [1]. However, mining has
an appeal that is magnetic for many investors who are
interested because the miners are rewarded for their activities
with crypto tokens. A botnet is a network of computers that
are infected and it works under the order of a master
computer that is single. The botnets work in unison in order
to achieve a goal. A botnet generally depends on two things.
First, is a large network of devices that are infected and the
second is that they need someone in order to order them to do
a task. The botnets are not used in order to attack people but
the hackers use them to mine the cryptocurrencies. They are
also known as miner of cryptocurrencies [3]. The botnet
miners are very dangerous and measures must be taken
against them so that they cannot bring any harm. The
measures are that the users should not download the things
from the internet that are not trustable, the online
advertisements should not be clicked, the users should not
gall for the phishing emails and the computer systems that
the user is using should have a strong antivirus like AVG.
2. Ransomware Attacks
The cryptomining malware refers to programs of software
and components of malware that are created to take over
resources of a computer and then utilize them for the mining
of cryptocurrency without the explicit information of the
user. The cyber criminals use cryptomining malware in order
to harness the power of processing of smartphones, computer
and other devices to assist them produce revenue from the
mining of cryptocurrency [4]. A common example is
cryptolocker. Cryptolocker is a very dangerous ransomware
that is used in order to obtain cryptocurrencies. Cryptolocker
is a malware or a Trojan horse that infects the computer
system and it searched for files in order to encrypt them. The
files include the files that are saved in the hard disk of the
computer system. The ransomware does not decrypt the files
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until the victim pays an amount to the attacker. If the victim
fails to pay the ransom, then the data will be deleted. The
cryptolocker is the first ransomware that accepts bitcoin or
cryptocurrency for payments. A research says that the
cryptolocker ransomware has extorted an amount of $ 27
million. The cryptolocker exploits the vulnerabilities of the
computer system in order encrypt the files [5].
Vulnerabilities are no proper internet security in the
computer system; proper network monitoring tools are not
present in the computer system. The most common way by
which a ransomware gets inside a computer is through
emails.
The mitigation techniques that should be adopted in order to
avoid the ransomware attacks are:
Defend the email against Ransomware: The emails must be
protected with the help of secure email gateways in order to
avoid ransomware attack.
Defend the devices of mobile against the ransomware: The
mobiles must be attacked with the protection products to
avoid ransomware attacks.
Defend surfing of web against ransomware: the computer
systems must be attached with web gateways that are secured
in order to recognise the malicious web advertisements.
Tracking server, network and back up streams: The
monitoring tools must be installed in order to detect files that
are unusual.
3. Attack Vectors
An attack vector is a technique that is utilized by a
hacker in order to penetrate the target system. The
attackers steal the data, information and money from
companies and people is investigating the attack vectors
and then attempting to take advantage of the weaknesses to
gain access to the system. The attackers use several attack
vectors in order to exploit the cryptocurrencies. There are
five main categories of attack vectors in order to obtain the
cryptocurrencies. The five categories include mining pool
attacks, double spending attacks, client-side security
threats, cryptocurrency associated attacks and the attacks
that slow down the adoption of cryptocurrency [6]. Several
methods are there in order to counter the attack vectors
that are used in order to obtain the cryptocurrencies. The
measures includes patching all the systems and the
applications that are installed on the computer system, to
implement the virtual patching with the help of Intrusion
Prevention System, utilizing the advanced zero-day
protections and most important counter is to protect the
resources of cloud using several applications such as
CloudGuard.
4. Attacks on Cryptocurrencies
The attacks on cryptocurrencies that have been identified
theoretically are the wallet theft, double-spending,
blockchain ingestion, cryptojacking, Sybil attack, race attack,
Finney attack, 51 % attack and many more.
The cryptocurrency prevents double spending by
timestamping the transaction groups and then broadcasting
them to all the nodes that are present in the network of
bitcoins. As the transactions are timestamped, they become
impossible to tamper with and become irreversible [7]. The
Cryptojacking attacks can be prevented by installing ad-
blocking or anti-cryptomining extension on the web
browsers. This is because the scripts of cryptojacking are
delivered through the web advertisements. Utilizing end
protection, which is able to detect the known cryptominers.
Lastly, the users must maintain the extension of the browsers.
5. Comparison of Existing Bitcoins
There are different cryptocurrencies that are used in
several places. The different cryptocurrencies include
bitcoins, bitcoin cash, Ripple, Stellar, Ether, Litecoin and
many more. The comparison among these cryptocurrencies
is as follows:
A. Bitcoin
It is the original cryptocurrency and it is the biggest
capitalization of market. Satoshi Nakamoto launched the
Bitcoin in the year 2009. It is used in order to secure
payments across networks that are peer-to-peer. The goal of
the bitcoins is to eliminate the requirement for a third party
that is trusted. The bitcoins democratize money and make
sure that the transactions are not known.
B. Bitcoin Cash
The Bitcoin cash is a digital currency that is standalone.
This was created in order to slow down the transaction speed
of the bitcoins and inability of the networks to reach the
agreement on the upgrades that are proposed. The maximum
block size of Bitcoin cash is 8 MB and that of bitcoin is 1
MB. Thus, the speed of transaction of Bitcoin cash is faster
than Bitcoins.
C. Ripple
The Ripple is a cryptocurrency, which underpins a network
of payment known as RippleNet that is utilized by banks and
the financial institutions. It operates in a different way
compared to other digital currencies and it has led to some
questions about its credential as a true cryptocurrency that is
decentralizes. The biggest advantage of Ripple is that its fast
speed of transactions.
D. Stellar
Stellar is a network of payment that operates in the same
way to the RippleNet and it can route transactions in more
than one currencies. It is supported by a cryptocurrency
known as lumens. It is commonly called Stellar. Lumens can
be utilized for payment on a network and it plays a role of
anti-spam, as each of the transaction needs a low fee of
transaction and that is paid in form of cryptocurrency. The
advantages of Stellar is that it combines with banks and it is
used to route transactions in more than one currencies
E. Ether
Ether is a cryptocurrency of the network known as
Ethereum and it enables the end users to code and then
release their own applications that are decentralized and it
can also create contracts that are smart that routinely enforce
the clauses. Very small amounts of ether are damages as the
transactions gets processed thus preventing the hackers from
spamming the network. The biggest advantage is that it is
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used beyond cryptocurrency on the network of Ethereum and
it has fast transaction speeds.
F. Litecoin
The Litecoin is also known as Silver bitcoin’s gold. Just
as the supply of outstrips of silver the gold supply, the
maximum supply of Litecoin is 84 million coins and it is four
times more than bitcoins. There are differences of technology
between the two cryptourrency. The biggest advantage of
Litecoin is that it has fast speeds of transactions.
IV. DISCUSSIONS
The Cryptocurrency is one of the most important
innovations that are used nowadays. Cryptocurrency is an
asset that is digital and is designed to work as a medium of
switch over that uses very strong cryptography in order to
secure the transactions that are financial. Bitcoin is one of the
cryptocurrency that is use worldwide. There are also other
cryptocurrency like Ether, Litecoin, Bitcoin cash and many
more. These cryptocurrencies are used all over the world.
There are different uses of cryptocurrencies that are utilized
by the people all over the world. The use of cryptocurrency
include low cost transfer of money, investment is early stage
start-ups that are innovative, used for making transactions
that are private and many such uses. There are various
advantages of cryptocurrency. The cryptocurrency include
that it has low costs of transactions and it makes trading easy
everywhere in the world. This is because is a currency that is
decentralized. The cryptocurrencies cannot be inflated or
deflated. The advantages of cryptocurrencies are more than
its disadvantages. However, in the recent years, the
cryptocurrencies are under attack by the hackers. The attacks
that make the cryptocurrencies vulnerable are the Distributed
denial of service attacks, Cryptojacking, 51 % attack, Sybil
attack and many more such attacks that make the
cryptocurrencies vulnerable. The ransomware attacks are
mainly used in order obtain the cryptocurrencies.
Cryptolocker is a ransomware that attacks the computer of
the user by encrypting the files and blocking the computer.
The file is decrypted when the ransom is paid in the form of
bitcoins or cryptocurrencies. The hackers illegally mine the
cryptocurrencies in order to get them.
The limitations that the cryptocurrencies face such as the
fact that digital fortune of one person can be deleted by a
crash of computer or a vault that is virtual can be stolen by
an hacker. As the cryptocurrencies are becoming popular, the
scrutiny by the police is becoming stronger day-by-day. The
numbers of merchants that accept the cryptocurrencies are
increasing but they are still undermined. The
cryptocurrencies have to gain acceptance to the users in order
to be used widely. In some few years, the currencies will be
replaced by the cryptocurrencies because they are technically
strong. The cryptocurrencies are encrypted by encryption
techniques so they are very hard to hack but there are high-
class hackers that launder money. The possibility of
cryptocurrency becoming popular is very remote but there
are still chances that the cryptocurrency will get widespread
acceptance. A question arises that should the people invest in
the cryptocurrencies. The answer is that the cryptocurrencies
has no value that is intrinsic. This makes the cryptocurrencies
vulnerable to large swings of price and it in turn maximize
the risk of loss for an investor.
V. CONCLUSION
From the research paper, it can be concluded that
cryptocurrencies are essential but they are still not in use in
many of the countries. The research paper deals with the
security of the cryptocurrencies. There are various security
breaches in the cryptocurrencies. The attacks in
cryptocurrencies include crypt locker, crypto jacking and
many such attacks that the hackers use in order to breach the
cryptocurrencies. The research paper consists of a set of
research questions upon which the research is based upon.
There are various types of cryptocurrencies that are present
and the financial institutions use it worldwide. The different
cryptocurrencies include Bitcoins, bitcoins cash, Litecoins,
Ether and many such cryptocurrencies that are used. The
research paper also consists of the attack vectors that are used
by the hackers in order to breach the cryptocurrencies and
hamper its security. The attack vectors include mining pool
attacks, double spending attacks and many more. The
cryptocurrencies are also subjected to ransomware attacks
where the files are encrypted and the users have to have the
ransom to the users in the form of cryptocurrencies to get the
key to decrypt the files. Lastly, the research paper briefly
discusses about the future aspects of the cryptocurrencies and
the future scope of the cryptocurrencies.
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