Dusting is a cyber attack technique in the cryptocurrency space aimed at collecting user information and causing security issues. This technique specifically targets digital wallets and can manifest in various forms, including sending small amounts of cryptocurrency to different addresses. In this article, we will delve deeper into the concept of dusting attacks and how they work.

Introduction to Dusting

Dusting refers to the process of sending tiny amounts of cryptocurrency to different addresses. These small amounts, known as "dust," are usually below the minimum transaction amount usable in cryptocurrency transfers. This technique is especially common in cryptocurrencies like Bitcoin, which have complex transaction management systems.

Purpose of Dusting Attacks

The primary goal of dusting attacks is to gather information and analyze user transaction patterns. Hackers send small amounts of cryptocurrency to different addresses, trying to identify specific patterns in users' financial activities. This technique can help uncover connections between different addresses and analyze financial networks. By analyzing transaction data, hackers may identify users' identities and their connections to other addresses.

Dusting attacks are commonly carried out on blockchain networks like Bitcoin, Litecoin, and BNB. Hackers send these small amounts of cryptocurrency to monitor transactional activity related to those addresses. They then analyze transactions and investigate patterns between addresses, aiming to identify links between different wallets. The main objective is to uncover the real identity of wallet owners and use this information for phishing attacks, extortion, or theft of digital assets.Dusting attacks are possible because of the transparent nature of blockchain, where all transactions are publicly visible. Hackers, using advanced data analysis techniques, can track users' transaction behavior and, if successful, obtain sensitive user information.

Are All Dusting Attacks Fraudulent?

While dusting can be used by hackers to gather information and identify users for malicious purposes, it also has other, non-malicious applications. Dusting can be performed by individuals and organizations for both good and bad intentions:

Hackers, scammers, and thieves: These individuals use dusting attacks to identify users' identities. Their goal is to access private information, analyze users’ transactions, and eventually exploit their digital assets. Hackers send dust to wallets, analyze the network, and seek to find out about users' financial connections. They may also use dusting to spam the network, creating numerous small transactions that clog and slow down the system, a known malicious action.

Law enforcement, companies, and research labs: These groups use dusting with legitimate purposes. Law enforcement might utilize this technique to identify criminal activities like money laundering, trafficking, and fraud. This approach aims to leverage blockchain's transparency to combat illegal activities.

Advertisers: Some cryptocurrency issuers use dusting as a marketing method. They send small amounts of their cryptocurrency to many wallets and send messages to users, akin to email advertisements.

Network testing: Dusting can sometimes be used to test the network’s operational capacity. In this scenario, numerous small transactions are sent between addresses in a short time to evaluate the blockchain's bandwidth and performance.

Costs of Dusting Attacks for Both Sides (Hackers and Victims)

Costs for Hackers:

Hackers conducting dusting attacks must send small amounts of cryptocurrency (dust) to numerous wallet addresses. While the amount of dust sent to each wallet is minimal, the total cost of these transactions can be significant due to the high number of addresses involved. This cost includes blockchain transaction fees and the cost of the dust being sent. After sending the dust, hackers analyze the users' transactions and financial connections. This process requires complex analytical tools and a significant amount of time to extract useful information, which also represents a cost for them.

Costs for Victims:

The primary cost victims incur from dusting attacks is the violation of their privacy. Hackers, by analyzing transactions and financial connections, can identify the victim’s identity, exposing them to various security risks. Once identified, victims may face phishing attacks, extortion, or even physical threats. For example, if hackers discover that a person holds a large amount of cryptocurrency, they may pose various threats to the individual and their family, such as kidnapping and ransom demands. Dusting attacks can also cause psychological stress for victims, as they may worry about future threats and potential exploitation.

How to Detect Dusting Attacks:

Dusting attacks are marked by very small amounts of cryptocurrency being deposited into your wallet. By regularly reviewing your transaction history, you can easily identify these small and suspicious transactions. These transactions typically involve trivial amounts of cryptocurrency that are easy to overlook but are recorded in your transaction history. Being aware of your wallet balance allows you to quickly notice any minor changes. If a small amount of cryptocurrency is suddenly deposited into your account without your knowledge, it could be a sign of a dusting attack.

How to Prevent Dusting Attacks:

To protect your privacy and assets in the world of cryptocurrencies, consider the following measures:

Use different addresses for each transaction: By using new addresses for each transaction, it becomes much harder for hackers to trace your transactions. This is one of the most effective ways to prevent your identity from being revealed.

Use secure and reputable wallets: Choosing a wallet with advanced security features can help protect against dusting attacks.

Monitor your wallet balance regularly: Staying informed about your wallet balance helps you quickly notice any unexpected dust deposits. If you notice that some dust has been deposited into your wallet, do not use it in transactions.

Use wallets with alert features: Some wallets send notifications when you receive cryptocurrency. This allows you to quickly identify suspicious transactions and avoid transferring or using them in future transactions.

Do not spend suspicious dust: If you notice that you’ve received dust, the most important recommendation is to not spend it or transfer it to another wallet. Hackers rely on analyzing combined transactions, and if you don’t move the dust, they will not be able to identify your identity.

Choose reputable exchanges: Use trustworthy and secure exchanges, like bestchanger.com, for your transactions. Exchanges with strong security measures and proven reliability can help prevent dusting attacks. Checking the background and reputation of the exchange is an effective precaution.

Notify wallet support if you become suspicious: If you notice dust in your wallet, report it to the wallet's support team. Some wallets have mechanisms to block and prevent the misuse of dust.

Examples of Dusting Attacks

Dusting attacks have occurred in several notable instances and have attracted considerable attention. Below are some examples of these attacks:

Dusting Attack on Samourai Wallet:

In 2018, Samourai Wallet warned its users that many Bitcoin wallets had become targets of dusting attacks. This widespread attack exposed users to the risk of identity disclosure and transaction analysis. To counter this threat, Samourai's development team introduced a "Do Not Spend" feature to the wallet. This feature allowed users to identify suspicious funds (dust) and prevent them from being mixed with other transactions, rendering the attack ineffective.

Dusting Attack on Binance Chain:

In October 2020, Binance users found small amounts of BNB cryptocurrency in their wallets. Many users did not realize these small amounts were dust and unknowingly used them in their transactions alongside other assets. After sending these funds, hackers used the "Memo" section to send links to users, encouraging them to click with promises of receiving additional BNB tokens. These links were infected with malware, and unaware users who clicked on them were exposed to hacking. This attack was similar to phishing methods, exploiting users' lack of awareness to steal information.

Conclusion:

Dusting attacks in the cryptocurrency world involve sending tiny amounts of currency to users' wallets to reveal their identity and steal personal information. While hacking blockchain itself is nearly impossible, wallets remain a key vulnerability. However, users can protect themselves against these attacks by following a few precautions: ignoring and not spending received dust, keeping wallet addresses private, using different addresses for transactions, regularly monitoring transactions, and staying updated with the latest security practices. These methods can help users strengthen the security of their digital assets and prevent dusting attacks.