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Vulnerabilities / Threats

7 Reasons Why Bitcoin Attacks Will Continue

Cryptographic currency's rising value makes it an appealing target for cybercrime gangs and crimeware toolkit developers.

6. Criminals can dump bitcoins quickly
Theoretically, government agencies running a massive digital dragnet could track some bitcoin transactions -- especially with taps on the right computers -- and unmask the identity of criminals who steal bitcoins and convert them to cash. But as a practical matter, individual bitcoin users shouldn't expect that stolen bitcoins will ever be returned to them. That's not just because bitcoins are relatively untraceable. It's also because criminals dump them as fast as possible.

"It seems cybercriminals are not bitcoins value speculators -- they are interested in quickly monetizing stolen bitcoins or using them as money-laundering mechanism," according to Maor. "They sometimes use additional services such as the Tor hidden service 'Bitcoin Fog Company' as an additional anti-trace back-step."

7. Legal nods suggest bitcoin is here to stay
During the past month, the People's Bank of China has been cracking down on virtual currencies, first by prohibiting Chinese financial institutions from handling bitcoins. This week, the central bank expanded its restrictions, announcing that by the end of January all of the country's third-party payment providers must stop providing clearing services for cryptographic virtual currencies, including bitcoin and litecoin. Cue a selloff, with the news sending the value of bitcoins plummeting by about 40%.

But China is unlikely to blunt investors' enthusiasm in the virtual currency. In fact, many people's optimism has been buoyed by a US Department of Justice official last month telling a Senate committee that bitcoins could be a "legal means of exchange," thus seeming to bolster the virtual currency's long-term viability. "We all recognize that virtual currencies, in and of themselves, are not illegal," Mythili Raman, acting assistant attorney general of the Justice Department's criminal division, said at the Senate hearing.

Likewise, PayPal president David Marcus said earlier this month at the LeWeb conference in Paris that his company would consider accepting bitcoins if their value stopped fluctuating so wildly. "It won't be a currency until volatility slows down," he said. "Whenever the regulatory framework is clearer, and the volatility comes down, then we'll consider it."

In other words, bitcoins' long-term prospects look good. But for all the reasons outlined above, including the weaknesses in many institutions that touch bitcoins, don't expect attackers to discontinue cooking up new ways to steal the cryptographic currency -- and succeeding.

Mathew Schwartz is a freelance writer, editor, and photographer, as well the InformationWeek information security reporter.

The use of cloud technology is booming, often offering the only way to meet customers', employees', and partners' rapidly rising requirements. But IT pros are rightly nervous about a lack of visibility into the security of data in the cloud. In this Dark Reading report, Integrating Vulnerability Management Into The Application Development Process, we put the risk in context and offer recommendations for products and practices that can increase insight -- and enterprise security. (Free registration required.)

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User Rank: Apprentice
1/3/2014 | 10:55:44 AM
Bitcoin DDoS attacks
Every operator of a Bitcoin mining pool should protect his business as well as his users from cyber criminals by using a proper DDoS protection (read: http://www.r00t-services.net/announcements/8/Bitcoin-Mining-Pools-and-DDoS-Attacks.html) to avoid all those problems.
Faye Kane, homeless brain
Faye Kane, homeless brain,
User Rank: Apprentice
12/30/2013 | 10:02:22 PM
Well, I guess I ought to reply to that because it's so mean

Look,  I only came here to read the latest news about our industry.  But you dragged the conversation off a technical topic because you're mad at me. I couldn't care less, because I'm autistic, but eventually you'll blame ME for making this personal. And I don't want that. My only post for this article was about bitcoins use. That is, until now, after you changed the subject to rape and my opinion of it.  I wish I could just S T F U and let you malign me and misrepresent something I said.  But I can't.  I don't actually know why, but it has something to do with integrity.

Everybody has a right to their opinions without being hated for them.  You can only judge what people do, not how they feel about something. So don't blame ME for YOUR anger at my opinions. This post is intended as a shotgun blast to give the lie to your unfair assertions. It's also to end this conversation about my attitudes concerning rape, which you started. So don't raise hell and get all offended when that's exactly what this is.

...or I'll spank you in public agan.

[sigh...] Okay, you're probably referring to this:

"Women's lib gone mad redefined "rape" to include all kinds of non-coercive, fun things."

Read my post again, inattentive angry guy.  How is that equating genuine forcible rape with a simple compliment?

That's not a rhetorical question, Poindexter.

Also, you chastise me for my supposed opinion of rape victims, which you deem not sufficiently reverent:

"These two things are not even in the same universe of comparisons, and for you to attempt to do so is an insult in addition to the injury on the person of anyone who has ever been sexually molested and attacked."

WELL, since you inappropriately brought up my attitude about this inappropriate topic, I 'll say right now that I do NOT think that a compliment at work is the same as rape.

Meaningless compliments are nowhere NEAR as exciting as being raped against your will by a complete stranger.

Well, at least, *I* liked it.  And so did the 40% of women who orgasm during stranger rape. Judging from my experience, the other 60% almost did, but the man finished first.

Here, see for yourself in an academic article by a female scientist (Journal of Clinical Forensic Medicine vol. 11, p. 82).

Or you can just read this, by a (female) rape crisis therapist:

The basic concept of experiencing orgasm during rape is a confusing and difficult one for many people, both survivors and those connected to survivors.

There are people who do not believe it's possible for a woman or man to achieve orgasm during rape or other kinds of violent sexual assault. Some believe having an orgasm under these circumstances means that it wasn't a "real" rape or the woman/man "wanted" it.

I've assisted more young women than I can count with this very issue. It often comes up at some point during therapy and it's extremely embarrassing or shameful to talk about. However once it's out in the open, the survivor can look at her/his reaction honestly and begin to heal. The shame and guilt around it is a large part of why some rapes go unreported and why there is a need for better understanding in society for how and why this occurs.

There have been very few studies on orgasm during rape, but the research so far shows numbers from 10% to over 50% having this experience. In my experience as a therapist, it has been somewhat less than half of the girls/women I've worked with.

[ Which is around 40%, just what the journal article says ]

In professional discussions, colleagues report similar numbers. Therapists don't usually talk about this publicly as they fear contributing to the idea of victims "enjoying rape." It's also a reason why there isn't more research done on this and similar topics. My belief is that as difficult a topic as this is, if we can address it directly and remove the shame and stigma, then a lot more healing can happen.


As for me, I was unimaginably shy in 2001 when it happened. Pathological. I only spoke in a whisper and never looked at anybody. Then IT happened. I was raped for two days by a sadistic stranger who was overflowing with the "sexual anger." Some of things he made me endure would almost certainly match the definition of "torture." He let me go after two continuous, nonstop days of this: when he was sleeping, I was still being hurt. He knew damn well that I wouldn't call the police about something I discovered I crave.

But even though I was tied down, unable to move even a little, and crying the whole time, it was a necessary and wonderful epiphany, like a religious revelation. A truth I had run away and hid from was forced into me. Now I'm an outspoken smartmouth smartass, and I'm not scared of anyone or anything, ever.

There's a whole lot more to it than that, but it basically had to do with remembering a horrible, wonderful  truth I( had always suppressed: that I'm not just a systems programmer, I'm also a female animal that exists for a single reason: to be brutally mated and die.

Here, read all the details.

Writing that was cathartic. It let me see the Big Picture. You'll be furious at me for such a shameful, depraved narrative, even though it's just a description of the bad things a man did to me one weekend.

...Well, you'll be furious at me right after you put the hand lotion away.

Though the things he did were more unimaginably painful than I thought was possible to feel, it was also intensely pleasurable at a deep level I didn't even know existed in me. It was a beautiful, transformative experience that changed my life which I will never, EVER do again.  But the truth made me free: I'm now a sex slave for a group house where I have to be naked all the time. A girl I knew in college llets me live here for free. Pix on my blog.

For 10 years I've posted stuff there specifically to spread the Good News for all-too modern man: you too can be a serial rapist—it's not just for stupid people anymore.

We hate in others what we fear in ourselves:

"These two things are not even in the same universe of comparisons, and, for you to attempt to do so is an insult in addition to the injury on the person of anyone who has ever been sexually molested and attacked."

Right. I feel ashamed of myself and intimidated. I'll probably make hari kari to attone for my sin of liking rape and daring to say that at least 40% of the other "victims" do, too.

Now then, geek, will you continue trying to intimidate me and double down on your angry, wrong beliefs? Or will you come to your senses and discontinue this unfortunate, off-topic conversation by not replying to this?

I pray for the latter, so we can go back to discussing Bitcoins.


-faye kane ♀ girl brain ♀ My blog


User Rank: Ninja
12/30/2013 | 4:26:34 PM
Re: It's not about government taxes; it's about government, per se.
I agreed with you right up til you equated rape with getting complimented at work. These two things are not even in the same universe of comparisons, and, for you to attempt to do so is an insult in addition to the injury on the person of anyone who has ever been sexually molested and attacked.
User Rank: Ninja
12/30/2013 | 4:12:55 PM
Welcome to the jungle
Bitcoin is a viable alternative to the central banking cartel, but unless and until an established marketplace such as eBay gets on board with it, it will continue to be the wild, wild west den of thieves it currently is.
User Rank: Strategist
12/21/2013 | 3:47:41 PM
It's not about government taxes; it's about government, per se.

I'm pretty sure very few people go to all the trouble of bitcoin just to avoid sales tax. Very few "normal" items are buyable in bitcoin anyway. And no one who makes a million dollars a year and gets taxed for it keeps it in bitcoin. The real reason it's popular:

People use bitcoin to buy harmless things that the 21st-century, NSA-infested American  government doesn't want you to have.

Our society has become more and more repressive, thanks to Liberals winning the culture war of the 60's. I'm so Liberal I'm probably a communist, but that's no excuse for jack-booting other people.

Just one example: Women's lib started out with outrage against guys beating up their wives and telling the judge "Aww, I was just drunk." Also, there were asymmetric laws favoring men. But it didn't stop when we ended those. Soon, they redefined "rape" to include all kinds of non-coersive, fun things.  Google the guy who got fired for telling a Seinfeld joke from TV. 

Now, guys are terrified to compliment us at work. That's horrible. The "n-word" is another example. Saying it used to just mean that you're ignorant and stupid. Now it's a "hate crime". Gambling is another example, and there are plenty more.

We have met the new boss, same as the old boss, and he is us.

People use bitcoin for gambling because the government won't let them use Visa. Guys use bitcoin to buy porn that's legal everywhere but the US—pictures in which the "victims" obviously enjoy their job. In every country in Europe, the age of consent is 16 or less, and most are 14 or 13.  Yes, really: http://tinyurl.com/euroconsent

People use bitcoin to buy weed which is legal in 3 states and that never should have been illegal in the first place. They also buy medicine that the drug companies are allowed to charge $15/pill for and (in my case) Adderall for ADD that I'd otherwise have to pay a shrink $120 a visit for plus an outrageous price at the pharmacy.

Until people demand that the government stops spying on us, stops taking bribes from big business, and stops putting people in Security Prison for "crimes" without any victim,  people will continue to use bitcoin.

But it's not about sales tax. Just as in many other countries, it's about technology making us free from government gone mad.

User Rank: Apprentice
12/21/2013 | 3:04:36 PM
Play with fire - you might get burned.
As far as I can tell, the main purpose of Bitcoin is for someone to hide whatever he or she is doing from governments, and especially the tax authorities. Since there is no honor among thieves, it's quite possible that, outside the protection of the law and the scrutiny of the banks, that person will become a victim rather than a successful tax evader. "As ye sow, so shall ye reap."
User Rank: Apprentice
12/19/2013 | 10:22:28 PM
Other attacks
Other attacks include infiltrating accounts and setting up/getting API keys.  These keys allow the normal login to be circumvented and they are used for such things as automated trading programs.

One attack/spam attampt is to register an address at blockchain.info and link that address to a web site.  Then send out very small amounts of Bitcoin.  If the user checks blockchain.info to see what the transaction is they may click on the link.

If someone says to send your Bitcoins to a Bitcoin "doubler" that runs some kind of special algorithm that doubles your balance ... don't do it!
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