In a recent discovery, the U.S. Federal Bureau of Investigation (FBI) has released a fresh warning to cryptocurrency investors over the growing activity of stealing cryptocurrency by taking advantage of loopholes in decentralised finance (DeFi) platforms.
The complexity of cross-chain functionality, the open-source nature of DeFi platforms, and investors’ growing interest in cryptocurrencies are all factors that cybercriminals frequently attack, according to the Federal Bureau of Investigation.
Cybercriminals stole $1.3 billion in cryptocurrencies between January and March 2022, according to Chainalysis. This theft was performed on DeFi platforms to the extent of about 97%.
Whenever In Doubt, Consult A Certified Financial Advisor
Investors lose a hefty sum of money as a result of these frauds, according to the Federal Bureau of Investigation. Because of this, the Federal Bureau of Investigation has urged investors who have suspicions about cybercriminals involving their DeFi investments to get in touch with it via the Internet Crime Complaint Center or their local FBI field office.
The law enforcement agency also provided information on several ways cybercriminals trick DeFi platforms. These include, among other things, withdrawing all of the platform’s investment and taking advantage of a signature verification flaw in the token bridge of the DeFi platform.
The agency suggested that investors base their investment choices on their financial resources and ambitions in its set of recommendations. It also stated that it is always advisable to get guidance from a certified financial consultant in cases of uncertainty.
Advisory From FBI:
The Federal Bureau of Investigation also advised the investors to take the following precautions:
- Do a thorough study on DeFi platforms, smart contracts, and protocols before investing.
- Be aware of the particular dangers connected with DeFi investing.
- Verify that the DeFi investment platform has undergone at least one code audit performed by impartial auditors.
- Pay close attention to DeFi investment pools with incredibly short join dates. Swift implementation of smart contracts, especially without the advised code audit.
- Be cautious of the potential risk presented by crowdsourced solutions for detecting and patching vulnerabilities.
Also Read:
CeDeFi: ALL YOU NEED TO KNOW ABOUT CENTRALIZED DECENTRALIZED FINANCE
CRYPTOJACKING: WHAT IS IT, AND WHY ATTACKS ON IT ARE INCREASING GLOBALLY?