How To Prevent Spoofing Attack – Crypto Spoofing

how to prevent spoofing attack

how to prevent spoofing attack

Many people often talk about how large traders and whales manipulate the markets. While much of these theories can easily be disputed, there are some well-known methods of market manipulation that require large holdings and one of these is a technique called spoofing attack.

In this article, I have stated out what you need to understand on how to prevent spoofing attack in crypto markets and other aspects of life or forms of spoofing.

What Is Spoofing Attack?

Spoofing is a way of manipulating financial markets by placing fake orders to buy or sell assets, like stocks, commodities, and cryptocurrencies. Typically, traders who attempt to spoof the market use bots or algorithms to automatically place orders to buy or sell. When the orders get close to getting filled, the bots cancel the orders. Another broad definition of spoofing is stated here: Investopedia

The main idea behind spoofing is trying to create a false impression of buy or sell pressure. For example, a spoofer may set a large number of fake buy orders to create a false sense of demand at a price level. Then, as the market gets close to the level, they pull the orders, and the price continues to the downside.

The market often reacts strongly to spoof orders because there isn’t a great way of telling if it is a real or a fake order. Spoofing can be especially efficient if the orders are placed at key areas of interest for buyers and sellers, such as significant support or resistance areas as these points are trading levels where high demands and supply are targeted.

Types Of Spoofing Attacks

Generally, there are different types of spoofing attacks ranging from crypto spoofing as stated above and to the ones I will list and discuss below. The other types of spoofing attacks include: email, text message, IP, website, facial spoofing.

Email Spoofing Attack

This is the method where spoofers forward fake emails that claim to represent a trusted client or company in order to get victims to share private informations with them. An example is a spoof email from pay.pal pretending to be the real Paypal company telling you, you’ve won money with them. Note, the difference in the dot (.) available in the first PayPal spelling. See images below:

how to prevent spoofing attack

how to prevent spoofing attack

Text Message Spoofing Attack

This happens in regards to text messages spoofers send claiming to be either from your financial institution or whatever in order to lure you in releasing private details to either your private savings or whatever.

IP Spoofing Attack

This has to do with IP addresses, as spoofers can buy a dedicated IP address or use proxy enabled VPN than can hide the spoofer’s real location while the spoofer claims to be in the fake displayed IP address.

Website Spoofing Attack

This is the process where spoofers send fake website links to clients claiming to be the real website company they are representing. They may often time clone the original website but only the vigilante will be able to detect the falsified web URL. Sometimes, the difference is in the web URL extension or typographical errors in the domain name. An example will be an https://amazon.co URL claiming to be https://amazon.com

Facial Spoofing Attacks

This is one of the latest spoofing attack as spoofers get people’s images or video and simulate them claiming to be those people and at the end, defraud either their financial institutions or whatever there intend to do with it.

How To Prevent Spoofing Attack

To prevent spoofing as a crypto trader, my simple advice is always to put stop loss orders on all your trades. As a professional trader, always put your stop loss order at key levels prior to your entries, either long or short entries.

For the other methods of spoofing discussed, to prevent been a victim of spoofers, always be sure of whatever platform you’re sharing your details or informations with and always check for reviews online to be sure you’re in the right platform.

What do you mean by spoofing?

Spoofing is a way of manipulating financial markets by placing fake orders to buy or sell assets, like stocks, commodities, and cryptocurrencies.

What is an example of spoofing?

The market often reacts strongly to spoof orders because there isn’t a great way of telling if it is a real or a fake order. Spoofing can be especially efficient if the orders are placed at key areas of interest for buyers and sellers, such as significant support or resistance areas as these points are trading levels where high demands and supply are targeted.

What are the types of spoofing attacks?

Generally, there are different types of spoofing attacks ranging from crypto spoofing as stated above and to the ones I will list and discuss below. The other types of spoofing attacks include: email, text message, IP, website, call, DNS and facial spoofing.

Be the first to comment

Leave a Reply