What is crypto dusting?
If you notice some crypto dust in your wallet that you don't recognize, or you haven't made any transactions or trades that may result in crypto dust, you may be affected by something called "dusting", also known as a "dusting attack".
During a dusting attack, a third party will send crypto dust to your wallet address and, oftentimes, thousands of other addresses, in order to track the transaction activity of wallets that receive the crypto dust.
Crypto dusting is a recognized tactic within the industry. Binance.US employs layered safeguards to mitigate potential privacy risks, ensuring customer data remains secure. At no point is your personal information shared with third parties connected to crypto deposits.
Sometimes, dusting attacks are performed by bad actors who analyze the targeted wallets in an attempt to link anonymous wallets to the identity of their real-world owner. To do so, bad actors typically follow the movement of transactions, so if dust is subsequently transferred to other destinations, the movement of funds may de-anonymize the wallet owner. These owners may then be subject to phishing attacks or other attempts to contact targets for nefarious purposes.
How does it work?
Sending the "Dust": A third party sends a minuscule amount of crypto (e.g., 0.000001 BTC) to many different wallets.
On-chain Tracing: Once the dust is in the wallet, the third party can use blockchain explorers to track its movement, should dust be transferred elsewhere.
De-anonymization: If you use that dusted crypto in a transaction, the third party could potentially trace it back to a specific service or individual.
How to protect yourself from a dusting attack
Given the nature of blockchain technology, its virtually impossible to prevent someone from sending you crypto. The best defense is to avoid interacting with the "dust", especially when transacting on chain. If you received dust, take the following precautions to safeguard your privacy:
Be Mindful of Privacy: Be aware that all transactions are public on the blockchain. Be cautious about sharing your public wallet address and understand the privacy implications of your on-chain activity.
Protect Yourself: Scammers may use personal details to craft convincing phishing messages designed to trick you into revealing your private keys or sensitive account information. Always verify the source, never share your private keys, and access your account only through official Binance.US channels.
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