Cryptocurrency Wallets and Security 4

Question 1

What is a 'dusting attack' in cryptocurrency security?

Accepted Answer

Sending tiny amounts of crypto to wallets to track and de-anonymize owners

Answer

Attackers send dust (tiny amounts) to many addresses; when users spend that dust, it links their addresses together, enabling identity analysis.

Question 2

What does 'air-gapped' mean when describing a wallet's security model?

Accepted Answer

The device has never been connected to the internet or any network

Answer

An air-gapped device is physically isolated from all networks, making remote attacks impossible since there is no communication pathway for attackers.

Question 3

What security risk does a malicious browser extension pose to a software wallet?

Accepted Answer

It can read browser memory and steal private keys or seed phrases

Answer

Browser extensions have access to page content and JavaScript memory, allowing malicious ones to extract private keys or intercept seed phrases as they are displayed.

Question 4

Which of the following is the safest way to verify a hardware wallet's firmware authenticity?

Accepted Answer

Verify the cryptographic signature of the firmware against the manufacturer's public key

Answer

Manufacturers sign firmware releases with their private key; verifying the signature against the known public key ensures the firmware is genuine and untampered.

Question 5

What is a 'SIM swap attack' and how does it threaten crypto wallets?

Accepted Answer

Socially engineering a carrier to transfer a phone number to the attacker's SIM, bypassing SMS 2FA

Answer

Attackers convince a mobile carrier to reassign a victim's number to their SIM, then use SMS-based two-factor authentication to take over exchange accounts and wallets.

Cryptocurrency Practice Test

Cryptocurrency Practice Test

Cryptocurrency Wallets and Security 4