Dusting Attack is a type of attack that aims to reach the identity of the wallet owner and other information that will be used in phishing scams.
Most cryptocurrency holders do not pay attention to the small amounts of assets in their wallet addresses. Malicious users within the platform sweep the dust off the wallet by sending small amounts of cryptocurrencies to these wallets. Sweeping the dust in different wallets, malicious users analyze wallets to get information about wallet owners. The purpose of the analysis is to connect wallets containing small amounts to individuals or companies.
What Is Dust?
Dust is the concept used to describe cryptocurrencies that are in very small amounts stuck in trading wallets.
How Does Dusting Attack Work?
A dusting attack is carried out by the transfer of investments sent technically. The malicious user expects you to add small cryptocurrencies called dust to your other investment in the same wallet and send them from the wallet. Thus, these people have information about the platform where the wallet is located and about the wallet owner. Dusting attack also makes situations like KYC verification vulnerable.
How to Avoid a Dusting Attack?
Crypto asset platforms allow their users to convert their dust into the platform's tokens every 24 hours.
By using a hierarchical deterministic wallet, one can defend against attacks. A hierarchical deterministic wallet is a digital wallet commonly used to store the digital keys of holders of cryptocurrencies such as Bitcoin and Ethereum. By having a copy of the private key, which is both public and password-like, users can control the cryptocurrencies in the account. A VPN can also be utilized, providing a strong network structure for anonymity and security. Cryptocurrency dust can be accumulated until it reaches a full token value and then transferred to the user's account to avoid dusting attacks.
Who Carries Out a Dusting Attack?
Dusting attacks are the process in which fraudsters send small amounts of cryptocurrency or dust to the wallets of users who hold large amounts of cryptocurrency to remove their anonymity or track their transactions. In addition to fraudsters, government agencies such as blockchain analysis firms, tax authorities, or law enforcement agencies can also carry out dusting attacks. These organizations can use a dusting attack to catch possible gangs trading contraband, money launderers, or any other tax evasion attempts. Dusting attacks can also be used to send spam.
What Is a Phishing Attack with Dust Process?
Phishing is another fraud strategy that is often confused with dusting attacks. Dusting aims to send a malicious link attached to the "Memo" tag (Destination tag). In fact, this is the realization of a phishing attack within the dusting process. With bad links included on coins that use the tag feature, users can send their assets to an unknown address and be scammed by sharing the incoming password. It is therefore recommended not to trust links with memo tags.
