Cyber criminals using crypto mixing services are booming

The world of cryptocurrency is growing exponentially, but with this new popularity comes a rise in cybercrime. New virtual currencies such as Bitcoin make it possible for users to transfer money without intermediaries or third parties. This process is called “crypto mixing” and involves assigning digital tokens, so the final receiver appears to be a different user, concealing their real identity. A study by Cisco revealed that cyber criminals are now using crypto mixing services to launder their money while they remain undetected. The report found that over 800 known cryptocurrency mixing services operate as a virtual black market, allowing cybercriminals to hide stolen funds from exchanges and users. Keeping in mind that the value of virtual currencies has grown drastically over the past year, it’s no surprise thieves are jumping on this opportunity. Read on to learn more about this growing trend and how you can protect yourself from being victimized by crypto-laundering hackers.

What is Crypto Mixing?

Crypto mixing is a type of online money laundering that exchanges one cryptocurrency for another to conceal the source of the funds. Cryptocurrencies are designed to be decentralized and to not have any central authority that can control the flow of cash. This makes it nearly impossible to track the source of money sent through these systems. Crypto mixing services have popped up online to help users launder their money. Users send their funds to one of these services and then are sent funds that are of equal value but come from a different wallet address. This way, the source of the funds is almost impossible to trace. There are several different types of mixing services. Some only allow the user to exchange one type of cryptocurrency for another, while others allow the user to send in a wide variety of digital currencies and receive a different assortment in return.

Why are Crypto Mixers so Popular?

Two main reasons cybercriminals turn to crypto mixers to launder their money. First, the public image surrounding cryptocurrencies has been tarnished by stories of hackers stealing funds from exchanges. Crypto mixers allow cyber criminals to continue stealing money from an exchange and then send their stolen funds through a crypto mixer to make the stolen funds untraceable. Second, new regulation has made it difficult to move funds through banks. Crypto mixers allow cyber criminals to exchange their fiat money for cryptocurrencies and then send their crypto funds through a crypto mixer to convert their cryptocurrencies into a different digital currency.

How Does Crypto Mixing Work?

Crypto mixers are online services that allow users to send in their funds and receive a different amount of funds back from a different wallet address. The mixer will exchange your funds for other funds and then send you an additional amount from a different wallet address. Your wallet address is made up of a long string of letters and numbers. The mixing service will take your wallet address and then add random numbers to the end of your wallet address. The service will then send your funds along with other users’ funds to the exchange wallet address. The exchange will then send your funds along with the other funds to the receiving wallet address specified by the user. The funds that the mixing service gets from the exchange will use a different wallet address than the receiving wallet address that the user specified. This way, the source of the funds is almost impossible to trace.

3 Services Used by Cyber Criminals

There are a variety of crypto mixing services that cyber criminals use, each with their own unique features. Below, we’ve listed a few crypto mixing services that are used by cybercriminals. Bitcoin Fog - Bitcoin Fog is one of the most popular crypto mixers that are used by cybercriminals. You can only deposit and withdraw Bitcoin and you can’t withdraw fiat money. There is a minimum withdrawal of 0.001 BTC/ 0.001 ETH per month. 

Crypto Fog - This service allows you to deposit and withdraw various virtual currencies. There is a minimum withdrawal of 0.01 ETH. 

BitCloak - This option allows you to deposit and withdraw various virtual currencies. There is a minimum withdrawal of 0.01 ETH. 

Bitcoin Mixer - This option allows you to deposit and withdraw Bitcoin. There is a minimum withdrawal of 0.001 BTC.

How to Protect Yourself from Crypto-Laundering?

The best way to protect yourself from crypto-laundering is to know what signs to look for if you’re using a crypto mixer. Here are some things to look for if you’re using a crypto mixer. Slow Withdrawals - If you’re using a mixing service, it might take you a week or two to receive your funds. If you’re sending your money to a mixing service and then you wait for weeks and weeks for your money, something is wrong. Increased Minimum Withdrawal Amount - Mixing services are generally free to use, but some may charge a small fee. If the mixing service you’re using suddenly increases the minimum withdrawal amount, the service may be a scam.

Conclusion

Cyber criminals are using crypto mixing services to launder their money while they remain undetected. The value of virtual currencies has grown drastically over the past year, and it’s no surprise that thieves are jumping on this opportunity. Make sure to stay informed about these crypto mixing services and how they work so you can protect your assets from being stolen by cyber criminals.

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