The Growing Importance of Secure Crypto Payment Gateways

Learn how cryptocurrency’s rapid growth brings risks like fake payment gateways and online scams. Discover tips to stay safe, avoid theft, and protect your data and digital assets.

Cryptocurrency has completely changed the way the financial world functions, offering decentralization, speed, and global accessibility. Yet, this change comes with its own set of risks, mainly when it comes to cybersecurity threats to payment gateways, where cybercriminals are always ready to exploit unsuspecting users.

Now that Bitcoin is valued at over $100,000, the importance of secure payment gateways and cybersecurity training has never been greater. The reason is that 2024 has been a challenging year for cryptocurrency users because the sophistication and frequency of attacks have increased, for example, research proves that over $1.48 billion of crypto assets were stolen this year.

According to CoinsPaid, a leading crypto payment processor, the average amount of cryptocurrency stolen per heist has skyrocketed by nearly 80% this year. While rug pulls scams and phishing attacks often dominate headlines, a quieter but equally dangerous threat is gaining momentum, which is malicious and fake cryptocurrency websites and their payment gateways.

The Role of Malicious Payment Gateways

A payment gateway is the backbone of any cryptocurrency transaction, acting as the bridge between users and their desired crypto services. However, when these gateways are operated by crypto-aimed cybercriminals like the North Korean Lazarus group, they become tools for theft.

Fake payment gateways are designed to appear legitimate, tricking users into entering sensitive information such as wallet keys, passwords, or two-factor authentication codes. In other cases, these gateways siphon funds directly during the transaction process.

Such scams are quite tricky as they take advantage of new crypto users, those with a lack of knowledge of how such scams operate, and those who are too naive to think that they could fall for a scam.

To make things worse for them, a user might click on a link in an apparently authentic email or visit a cloned website that mirrors a reputable service. Once the transaction is carried out, funds are transferred to scammers, leaving victims with little recourse.

However, crypto security researchers like ZachXBT are one of those few individuals who have a proven track record of tracking crypto scammers and even getting the government involved to refund the stolen assets. Researchers at DataViser have also shared a list of malicious crypto sites known for stealing user data.

1/ An investigation into how Greavys (Malone Iam), Wiz (Veer Chetal), and Box (Jeandiel Serrano) stole $243M from a single person last month in a highly sophisticated social engineering attack and my efforts which have helped lead to multiple arrests and millions frozen. pic.twitter.com/dcY1e9xsPd

— ZachXBT (@zachxbt) September 19, 2024

Mitigating Risks

The rise of fake gateways simply shows the need for education and caution among crypto users. Before initiating any transaction, it’s important to verify the authenticity of the payment gateway. Users should look for signs of legitimacy, such as SSL certificates, official domain names, social media profiles, and user reviews from trusted sources.

Moreover, implementing cybersecurity measures can greatly reduce risks. These include the use of hardware wallets, two-factor authentication, keeping software updated, and not investing in every project you see on social media especially those in X (formally Twitter).

You must also refrain from visiting unknown websites, clicking links or downloading and executing files received from anonymous sources. VirusTotal is a free and handy tool to scan malicious files and links before opening them.

Editor’s Note: The content of this article is intended to raise cybersecurity awareness among unsuspecting users. This is not an investment guide or financial advice. Readers are encouraged to conduct thorough research and exercise caution when dealing with cryptocurrency transactions or platforms.

1. 6 of the Best Crypto Bug Bounty Programs
2. 5 Platforms for Identifying Smart Contract Vulnerabilities
3. Best Crypto Marketing Agencies for Web3 Security Brands
4. Why Hosting firms have started accepting crypto payments
5. Top 5 Platforms for Identifying Smart Contract Vulnerabilities