In a broader sense, any type of manipulation associated with the psychology of human behavior can be considered social engineering. However, the concept itself is not always associated with criminal or fraudulent activity. In fact, social engineering is widely used and studied in various fields, such as social sciences, psychology and marketing.

When it comes to cybersecurity, social engineering has ulterior motives and refers to a series of malicious actions in the form of manipulating people's activities to obtain personal or confidential information that can later be used against them or their company. Identity fraud is a common consequence of these attacks and in many cases results in significant financial losses.

Social engineering is often presented as a cyber threat, but the concept has been around for a long time and the term can also be used to refer to real-life scams that typically involve impersonating a government official or IT professional. However, the advent of the internet has made it much easier for hackers to carry out manipulation on a larger scale, and unfortunately, these malicious activities are also occurring in the cryptocurrency environment.


How it works?

All types of social engineering rely on weaknesses in human psychology. Fraudsters use human emotions to manipulate and deceive their victims. People's fear, greed, curiosity and even willingness to help others are turned against them in various ways. Among the many types of malicious social engineering, “phishing” is certainly one of the most common and well-known examples.

Phishing

Phishing emails often pretend to be from a real company, such as a national banking network, a reputable online store, or an email provider. In some cases, these clone emails will alert users that their account needs updating or are exhibiting unusual activity, requiring them to provide personal information as a way to verify their identity in order to streamline the account. Out of fear, some people quickly click on the links and end up on a fake website, where they provide the information the attackers need.

Fake antivirus

Social engineering methods are also used to distribute so-called False Antiviruses. As the name suggests, a rogue antivirus is a type of malware designed to intimidate and shock users. This is typically associated with notification of hoax threats that attempt to trick victims into installing legitimate-looking malicious software or accessing a website that infects their system. This technique often relies on users' fear of putting their system at risk, thereby convincing them to click on a web banner or pop-up. The messages usually say something like: “Your system is infected, click here to remove the threat.”

Bait

Baiting is another social engineering technique that causes problems for many inattentive users. It involves using various lures to attract victims based on their greed or curiosity. For example, scammers may create a website that offers something for free, such as music, videos or books. But to access these files, users need to create an account by providing their personal information. In some cases, an account is not required because the files are directly infected with malware, which infiltrates the victim's computer system and collects their sensitive data.

This pattern can also occur outside of Internet surfing, through the use of USB drives and external hard drives. Fraudsters may deliberately leave infected devices in a public place, so any curious person who picks it up to check the contents will end up infecting their personal computer.


Social engineering and cryptocurrencies

A greedy mentality can have some pretty big consequences when it comes to financial markets, leaving traders and investors especially vulnerable to phishing attacks, Ponzi schemes, pyramid schemes and other types of scams. In the blockchain industry, the excitement generated by cryptocurrencies attracts many newcomers to the medium in a relatively short period of time (especially during bull markets).

Even though many people do not fully understand how cryptocurrency works, they often hear about the potential of this market to generate profits and ultimately invest without doing the proper research. Social engineering is especially important for beginners, as they often become trapped by their own greed or fear.

On the one hand, the desire of newbies to quickly make a profit and earn easy money ultimately forces them to pursue false promises of giveaways and airdrops. On the other hand, the fear that their personal data will be compromised may motivate users to pay a ransom. In some cases, no actual ransomware (aka. ransomware) infection occurs and users are victims of a false signal or message created by hackers.


How to prevent a social engineer attack

As mentioned, social attacks only work because they appeal to our human nature. They typically use fear as a primary motivator, prompting people to act immediately to protect themselves (or their system) from a serious threat. The attacks also rely on human greed, luring victims into various types of investment scams. Therefore, it is important to keep in mind that if an offer looks too good to be true, then most likely you are being scammed.

While some scammers are quite sophisticated at this, others make visible mistakes. Some phishing emails and even fake banners often contain syntax or wording errors and are only effective for those who do not pay enough attention to grammar and spelling, so be careful.

To avoid becoming a victim of a social engineer, you must adhere to the following safety measures:

  • Consult family and friends. Educate them about common cases of malicious social engineering and basic security principles;

  • Be careful with attachments in emails and links. Do not go to advertisements and sites from an unknown source;

  • Install a reliable antivirus and regularly update your applications and operating system;

  • Always use multi-factor authentication to protect your accounts, email, and other data. Set up two-factor authentication (2FA) for your Binance account;

  • For businesses: Consider preparing your employees to identify and prevent phishing attacks and social engineering schemes.


Conclusion

Cybercriminals are constantly looking for new and better ways to trick users into stealing their funds and confidential information, so it's important to be aware of this and notify others. The Internet provides a space for these types of scammers, and they are especially common in the cryptocurrency space. Be careful and vigilant to avoid falling into the social engineer's trap.

In addition, anyone who decides to trade or invest in cryptocurrency should do their background research and ensure they have a good understanding of both the principles of the market and aspects of blockchain technology.

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