LiteCoin. Everybody’s talking about the promising virtual currency as an alternative to the vulnerable BitCoin Wallet system for secure online transactions. But when it comes to e-commerce and digital currencies, cyber theft attempts are inevitable, and a hundred percent cyber security is a myth.
Fortunately, creators of LiteCoin (LTC) realized just that fact as the Slovakian security software firm ESET discovered a malware called Trojan Horse attempting to steal LTCs by infecting Windows based machines. The threat – also known as Win32/Scoinet – belongs to the Skynet family of malware, and steals “wallet.dat” files that are used to store the virtual currency in the LTC wallet app for Windows. The Trojan then transmits these files to a remote FTP server controlled by hackers to decipher the encryption and steal the funds stored within the digital wallet. LiteCoin web host has been quick to react to these reports and a warning message is now shown when users connect to the attacker’s FTP server.
LiteCoin system functions in the same way as the fraud-prone BitCoin system as both utilize identical peer-to-peer network and protocols for online transactions. However, LiteCoin currency network provides faster transaction certificates that allow for a complete online transaction within 2.5 minutes as compared to BitCoin’s transaction times of up to six hours.
But this very nature could enable cyber thieves to quickly steal money upon decrypting LiteCoin wallets. These cybercrime reports will have a chilling effect on the virtual currency system as a whole, and LiteCoin’s rise to fame may grind to a halt if proper cyber fraud-prevention measures are not put into place.