Most cyberattacks in the crypto space involve hackers finding a way around the security of crypto exchange platforms and gaining access to users’ funds. Last year saw the entry of a new breed of cyber extortionists that seems to be gaining ground, so much so that they were able to steal over $300,000 in bitcoin (BTC) tokens in 2018.According to a report by research and risk assessment firm Digital Shadows, this scam was committed through a wide array of “sextortion” blackmail strategies, which included the weaponization of emails.The report, which was titled “A Tale of Epic Extortions: How Cybercriminals Monetize Our Online Exposure,” revealed that the scam started back in 2017. However, it only gained mainstream notoriety in the middle of 2018, after its list of victims continued to grow.Digital Shadows was able to track over 792,000 targeted emails, where it discovered the loss of about $300,000 worth of bitcoin, which was stolen from over 3,000 bitcoin wallet addresses.How They OperateThe goal of the cybercriminals is to convince the victim that their system had been hacked, allowing them to obtain valuable information that could expose their intimate activities.To look convincing, the extortionists provide the victim with a known password, also known as “proof” of compromise — this is meant to offer evidence of the hack. Then they claim to have footage of the victim watching porn online, urging them to pay a ransom in bi...
