Routing Attack

Routing attacks, also known as BGP hijacking, occur when an attacker manipulates the Border Gateway Protocol (BGP) to redirect internet traffic to their own servers. In cryptocurrencyCryptocurrency is a digital or virtual currency that uses cryptography for security and operates independently of a central bank. Cryptocurrencies use decentralized technology called blockchain... trading, routing attacks can be used to redirect trading traffic to a fake exchangeA cryptocurrency exchange is an online platform that allows users to buy, sell, and trade cryptocurrencies. These exchanges serve as intermediaries between buyers and sellers,... or walletA cryptocurrency wallet is a digital wallet that is used to store, send, and receive cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. It's similar to..., allowing the attacker to steal cryptocurrency or execute fraudulent trades.

For example, an attacker could use BGP hijacking to reroute traffic from a legitimate cryptocurrency exchange to a fake version of the exchange. The attacker could then use the fake exchange to steal user login credentials or execute unauthorized trades.

To protect against routing attacks, traders should use two-factor authentication and other security measures to protect their accounts. It is also essential to use reputable exchanges and wallets and to monitor for any unusual account activity or suspicious network traffic. Additionally, many cryptocurrency exchanges offer multi-signature wallets, which require multiple parties to authorize transactions, adding an extra layer of security to prevent unauthorized access to funds.

There have been a number of reported routing attacks in the cryptocurrency industry. One notable example occurred in 2018, when attackers used BGP hijacking to redirect traffic from the MyEtherWallet (MEW) website to a phishing site that looked identical to the real MEW site.

The attackers used a fraudulent SSL certificate to make the fake site appear legitimate and were able to steal over $150,000 worth of cryptocurrency from unsuspecting users. The incident highlighted the importance of securing online accounts and the potential risks of relying on centralized internet infrastructure.

Since then, several other cryptocurrency exchanges and wallets have fallen victim to similar routing attacks, emphasizing the need for increased security measures to protect against these types of attacks.