QR Code Fraud Could Result In $50,000 of Stolen Bitcoin Each Year

In the crypto world, it is common knowledge that public keys can be shared freely, as those keys simply represent an address that can be used to receive money. Unlike private keys, public keys cannot be used to withdraw funds from an address. However, it seems that public key sharing is quickly becoming the target of attackers who exploit QR codes.

QR codes are simply scannable images that represent a string of text. Mobile wallets commonly rely on QR codes because they provide a way for users to share a wallet address without the need for typing. The problem is that QR codes are easy to generate and hard to distinguish, and various malicious sites are taking advantage of that fact.

The Rise of Malicious Sites

Plenty of legitimate sites and wallets can convert crypto addresses to QR codes. However, a number of malicious sites are also offering the same function while surreptitiously inserting their own address. This technique is called a man-in-the-middle attack because attackers don’t actually gain access to a wallet — they simply intercept and redirect a transaction.

Since malicious sites frequently change the addresses that they use, it is hard to say exactly how much cryptocurrency these sites have stolen. However, after examining three different sites that rank highly in Google’s search results, it becomes clear that a small number of sites have stolen a substantial amount of money in a short time:

Address: 1HvQ4SMQSqwDXZNYQKB9qinkrPdrvX9YApp
Received: $2,833.88 Active for: 32 days
Used by: bitcoinqrcodegenerator.win

Address: 1MbHBa12WgX611LA21Bg63EpaMXF6ZqUa8
Received: $6,022.64 Active for: 145 days
Used by: bitcoin-qr-code.com

Address: 1HrNjjgtSzdbCEMKwzVQgLuKa3JjF8fSEQ
Received: $161.74 Active for: 108 days
Used by: bitcoin-btc-qr-code-generator.com

Assuming that these numbers remain more or less consistent over time, these three sites would collectively be responsible for stealing over $47,000 worth of Bitcoin in a year. This doesn’t account for the fact that one of the sites also owns Ethereum, Litecoin, and bitcoin Cash addresses, meaning that the total amount of stolen crypto could be even higher.

Suggested Reading : Learn about the best Litecoin wallets and the best Bitcoin Cash wallets.

Preventing An Attack

This sort of attack is very effective due to the fact that nearly every QR code looks identical to the naked eye. Human-readable (or at least human-recognizable) QR codes would partially solve the problem, but since addresses themselves aren’t human readable, this solution can only go so far. Alternately, transaction verification features such as Ardor’s vouchers could ensure that crypto transfers reach the right person.

Neither of these solutions are widespread, though. Until cryptocurrencies or wallets implement a feature that prevents this sort of attack, the best solution is to use a reputable wallet with a built-in QR code generator. Ideally, you should also verify your QR code by reversing it and seeing if it produces the correct address, but selecting a trustworthy wallet is an important first step.

The post QR Code Fraud Could Result In $50,000 of Stolen Bitcoin Each Year appeared first on UNHASHED.

Published at Mon, 07 Jan 2019 12:03:58 +0000

July 15, 2017

Ether Price Analysis: Double Bottom Fake-out Leaves Bulls Trapped

After what seemed like a reversal from the strong bear market for the entire crypto-market, many bullish investors found themselves initially taking profit from what appeared to be another Double Bottom Reversal. However, when it came time to re-test the neckline, the ETH-USD market decided to continue its move down. So why did the Double Bottom Reversal, outlined in a previous BTC-USD analysis, not yield the results during yesterday’s rally?

Figure 1: ETH-USD, 1-hr Candles, GDAX, Fake Double Bottom

In the article referenced above, several criteria outline the price projections one can expect from a Double Bottom Reversal pattern. One of the most crucial aspect of a Double Bottom Reversal is the volume supported on the two lower peaks of the pattern. In the figure shown above, the left example of the Double Bottom pattern is support with obvious spikes in volume where the market attempted to make a new low. However, in our case, we see a pattern that looks like a Double Bottom, but lacks the required volume to really send the reversal pattern in a significant bullish rally.

So, now that we’ve failed to reverse this bear trend once again, where does this leave us in the grand scheme of things? To put this market into perspective, it is often useful to zoom out and view it on a high timescale:

Figure 2: ETH-USD, 12-hr Candles, Gemini, Macro Bear Trend

One of the most notable things about this bear trend is the failure to make a new high, time and time again. Each failure to make a new high has been coupled with an increase in overall market volume, which acts an initial indicator that the market still has more bearish pressure on it. Next, if we move on to the MACD (an indicator of market momentum), we can see two things:

The current bearish period is showing no sign of divergence — each relative low made in the market is coupled with a low on the MACD histogram.
Most important, the macro bear trend shows maintained downward momentum by the way the signal line / moving average have made a new low (see the orange, dashed line).

At the time of this article, the market is finding major support and resistance levels along the Fibonacci Retracement values of the macro Bear trend (see pink notation in the image above). The fake Double Bottom Reversal propelled the market back up enough to test the 23 percent retracement value before ultimately pivoting with relative ease. On the macro scale, the next major line of support lies at our previous low: $175. It will be a hard-fought battle as this is a line of historic interest within the lifetime of the market.

As the market proceeds its march toward the bottom, the various lines of the Fibonacci Retracements will play a key role for entering and exiting positions. Most commonly, before progressing to the next Fibonacci Retracement line, the market will make a test of the resisting line above it before continuing the downward trend. The figure below outlines the recurring theme of this macro bear trend’s Fibonacci Retracement tests:

Figure 3: ETH-USD, 6-hr Candles, Gemini, Fibonacci Retracement Trend

It’s entirely possible that the market won’t make it back down to to the 0 percent Fibonacci Retracement values, but, given the downward momentum outlined on several market indicators, it seems far more likely than not. With the massive Head and Shoulders (outlined earlier this week) on the BTC-USD markets looming in the background and testing key support levels, one can only speculate just how far the crypto-market will continue its downward move.

Summary:

A fake Double Bottom Reversal formed on the smaller timescales, trapping many people in a bullish position.
On a macro scale, the ETH-USD is maintaining its downward momentum and continues to test Fibonacci Retracement values.

Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on bitcoin Magazine and BTCMedia related sites do not necessarily reflect the opinion of BTCMedia and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.

The post Ether Price Analysis: Double Bottom Fake-out Leaves Bulls Trapped appeared first on Bitcoin Magazine.

QR Code Fraud Could Result In $50,000 of Stolen Bitcoin Each Year

The Rise of Malicious Sites

Preventing An Attack

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