Litecoin users on Binance fell victim to a large scale dust attack earlier this week, alarming the crypto community about this new type of malicious attack. While they’re not nearly as dangerous as phishing, knowing what dust attacks are can help people protect themselves and their crypto assets from danger.
Crypto exchanges see dust attacks rise
The crypto industry has never been a stranger to malicious attacks. Hacks, thefts, phishing, cryptojacking, ransomware, etc. are all types of malicious attacks crypto users have already become accustomed to. However, as the industry matures, new, more advanced types of attacks begin to pop up.
That is the case with dust or dusting attacks. These types of attacks are a relatively new kind of malicious activity that aims to deanonymize the privacy of cryptocurrency users. According to Binance Academy, attackers send tiny amounts of tokens, or dust, to dozens, or even hundreds of users. These amounts are usually so small that end users usually don’t notice them.
Scammers “dust” a large number of crypto addresses, which they later analyze them in order to determine which ones belong to the same wallet. The ultimate goal of this analysis is to link the dusted addresses to their owners and then use that information to extort them.
How to protect yourself from dusting attacks
The attackers that dust large numbers of crypto addresses hope that the tiny amounts, usually not larger than a few satoshis, or 0.000000001 BTC, get mixed together with an unspent transaction output. If that happens, the dust can then be spent as an input in a new transaction,