• About Us
  • Careers
  • Contact
No Result
View All Result
Saturday, June 7, 2025
DeFi Planet
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
No Result
View All Result

What Is a Dusting Attack and How Does It Work?

25 October 2023
in Articles, Explainers
Reading Time: 7 mins read
122 2
Home Articles

Contents

Toggle
  • What is a Dusting Attack?
  • How Does a Dusting Attack Work?
  • How to Get Rid of Crypto Dust
    • Maintain a Minimum Balance Threshold
    • Convert Small Amounts to Other Tokens
  • How to Prevent a Crypto Dusting Attack
    • Be Cautious with Addresses
    • Choose a Secure Wallet
    • Explore Privacy Features & Tools
    • Beware of Suspicious Airdrops
  • Other Purposes for Dusting Attacks
    • Uncovering Illegal Activity
    • Research
    • Marketing

Cryptocurrencies aren’t entirely anonymous; they’re more like pseudonymous currencies. You can track transactions, but the identity of the parties involved stays unknown. 

The majority of cryptocurrencies operate on open and decentralized blockchain networks. This means anyone can join the network and set up a digital wallet without giving out personal information. Thus, verifying the true identity associated with a cryptocurrency wallet address is difficult.

Nonetheless, while this does offer a degree of privacy for cryptocurrency users, every cryptocurrency transaction is documented in a public ledger and is accessible to anyone interested in tracking them. This can result in a security risk known as “dusting attacks” when malicious actors attempt to exploit this situation.

What is a Dusting Attack?

A dusting attack, also known as a dust attack, is a malicious activity in which hackers send small amounts of cryptocurrency to individuals’ wallets to monitor their transaction history.

The primary aim of dusting attacks is to unveil the owner of a wallet address and thus provide attackers with an opportunity to steal funds through methods like phishing. 

In some instances, newly created tokens may entice users to activate a smart contract on a specific website, potentially resulting in the depletion of their funds if the contract has such permissions.

Dust attacks started with Bitcoin but are now occurring with Litecoin, BNB, and other cryptocurrencies that use a transparent and publicly accessible blockchain.

Dust attacks are typically carried out with one of two primary objectives:

  1. To lead unsuspecting users to malware, phishing websites, or advertisements. This scenario is common for account-based cryptocurrencies, where the dust transaction may contain embedded harmful links within the transaction details.
  2. To analyze how a wallet address interacts within the network. This analysis reveals other addresses owned by the user. This is typical for assets based on Unspent Transaction Outputs (UTXOs). 

How Does a Dusting Attack Work?

The attacker initiates a dusting attack by sending small amounts of cryptocurrencies, “dust,” to many target addresses. These amounts are so small that most people won’t notice them in their wallets.

To illustrate, let’s consider a scenario where you have 0.6371149 BTC in your wallet and intend to transfer 0.6371 BTC to another wallet after deducting a transaction fee of 0.00001 BTC. This leaves a residual balance of 0.0000049 BTC (equivalent to 490 satoshis). 

This small balance is called “dust” because it’s practically useless; it is insufficient to cover the fee for another transaction, and it would probably remain in the wallet until it accumulates.

Attackers can send hundreds of these tiny amounts across the blockchain network, hoping some will remain in the victim’s wallet.

Next, the attacker monitors those funds and all the transactions from the dusted wallets. They analyze everything together to figure out which addresses belong to the same wallet, as it’s common for someone with a crypto wallet to have multiple addresses. 

The ultimate objective is to link the dusted wallets to the individuals or organizations behind them. Over time, the attacker unveils the identity of the entity using the dusted wallet. Once the wallets lose their anonymity, attackers may exploit this information for phishing attacks or cyber threats against their targets.

In the last quarter of 2020, a dusting attack occurred on the Binance Chain network. Hackers sent tiny amounts of BNB to multiple accounts and included a link falsely claiming to offer 50 BNB. However, this was just a ploy by the hackers to try and access users’ information.

If you have recently received a very small amount of BTC in your wallet unexpectedly, you may be the target of a “dusting attack” designed to deanonymise you by linking your inputs together – Samourai users can mark this utxo as “Do Not Spend” to nip the attack in the bud. pic.twitter.com/23MLFj4eXQ

— Samourai Wallet (@SamouraiWallet) October 25, 2018

Before the Binance Chain attack, hackers went after Samourai wallets. Despite developers’ warnings on social media and marking malicious funds as “do not spend,” some users still got tricked. 

Attackers now send larger amounts than usual to targeted accounts to hide their dust attacks. So, it may not be so obvious to a user that they are experiencing a dust attack.

How to Get Rid of Crypto Dust

Here are a couple of ways to remove crypto dust from your wallet:

Maintain a Minimum Balance Threshold

Establish a minimum balance requirement for your wallet. When the balance falls below this threshold, then you increase your crypto holdings.

Convert Small Amounts to Other Tokens

If your crypto wallet service permits, convert the little amounts of crypto into other tokens. For example, if you possess 0.00004 BTC, you can exchange it for 1.1 USDT at the current exchange rate and subsequently convert it to your local currency for withdrawal to your bank account. Certain crypto exchanges, including Binance, Crypto.com, OKX, Gate.io, and others, allow users to convert small crypto amounts into the exchange’s native token every 24 hours.

How to Prevent a Crypto Dusting Attack

To avoid crypto dusting attacks, follow these steps:

Be Cautious with Addresses

Avoid dealing with unfamiliar or suspicious addresses to reduce the risk of receiving crypto dust. Stick to known and trusted addresses to maintain your privacy and security.

Blockchain analytics tools can spot patterns and connections between addresses, helping identify potential dusting attacks by revealing address clustering. This enables you to steer clear of suspicious addresses.

Choose a Secure Wallet

Opt for a secure crypto wallet equipped with strong security features like encryption, robust password requirements, and multi-factor authentication. These measures prevent unauthorized access and ensure that only you can initiate transactions.

You can also consider using a Hierarchical Deterministic (HD) Wallet. An HD wallet automatically generates new addresses for each transaction. This added security measure makes it difficult for malicious actors to track your transactions and discover your identity.

Explore Privacy Features & Tools

Some advanced wallets offer privacy features such as coin control, stealth addresses, or built-in mixing services. These features obscure transaction histories, making it challenging for attackers to trace your transactions or execute dusting attacks.

Privacy tools like The Onion Router (TOR) can also help enhance anonymity and make it challenging for attackers to trace your transactions.

Beware of Suspicious Airdrops

Protect yourself by avoiding suspicious crypto airdrops. Malicious individuals exploit the memecoin craze by enticing users to share their wallet addresses or interact with fraudulent smart contracts, promising rewards. Falling for these schemes makes you vulnerable to crypto dust, which can be used for significant attacks later on.

Other Purposes for Dusting Attacks

Beyond their malicious use, crypto dust serves legitimate purposes as well. Here are some non-malicious applications of dusting attacks:

Uncovering Illegal Activity

Uncovering Illegal Activity: Government agencies, including tax authorities and law enforcement, employ crypto dust in investigations related to crimes such as money laundering, tax evasion, and fraud. This data assists in identifying the individuals behind a wallet, tracking their transactions, and conducting thorough investigations. As an example, in August 2022, more than 600 wallet addresses were targeted in a crypto dusting attack. Data from the blockchain security firm PeckShield revealed that Aave, a DeFi lending protocol, restricted several users who had received 0.1 ETH each, valued at around $20, from the privacy protocol Tornado Cash, which was under sanctions.

Research

Some researchers and blockchain security firms employ dusting attacks in their studies, occasionally with financial support from governments.

Marketing

Dusting attacks are becoming more inventive, even being used for marketing purposes. While these may not align with the typical definition of a dusting attack, the techniques employed share similarities. 

For example, when a new crypto project is launched, it might distribute a small quantity of its tokens to random addresses, effectively using this as a cost-effective marketing strategy to introduce the project to a broader audience. This approach can also be applied with NFTs, especially on blockchains with low transaction fees like Polygon.

Nonetheless, it’s imperative to remain vigilant and adaptable in response to potential risks. Make it a routine to regularly review and enhance your security measures to ensure the continuous protection of your cryptocurrency assets.

 

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence. 

If you would like to read more articles (news reports, market analyses) like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.

“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”

Don't miss out!

Subscribe To Our Newsletter

Receive top education news, lesson ideas, teaching tips and more!
Invalid email address
Give it a try. You can unsubscribe at any time.
Thanks for subscribing!
Share72Tweet45Share13
Previous Post

Maestrobots Reimburses Users Over $1 Million After Ethereum Router Exploit

Next Post

Ethereum’s Supply on Centralized Exchanges Falls to 8.41% – Lowest Since 2015

Blessing Lisafi

Blessing Lisafi

Related Posts

What Is Price Slippage in Crypto & How Can You Avoid It
Articles

What Is Price Slippage in Crypto & How Can You Avoid It

4 June 2025
Is Blockchain-as-a-Service the Key to Scalable, Secure, and Strategic Blockchain Adoption?
Articles

Is Blockchain-as-a-Service the Key to Scalable, Secure, and Strategic Blockchain Adoption?

3 June 2025
10 Things You Didn’t Know You Could Buy with Bitcoin
Articles

10 Things You Didn’t Know You Could Buy with Bitcoin

3 June 2025
Address Poisoning Attacks in Crypto: What They Are and How to Stay Safe
Articles

Address Poisoning Attacks in Crypto: What They Are and How to Stay Safe

3 June 2025

Featured Posts

The Hidden Dangers of Holding Crypto in Exchanges

The Hidden Dangers of Holding Crypto in Exchanges

byOlajumoke Oyalekeand1 others
27 May 2025
0

Should We Put a Price on Everything? The Ethics of Tokenizing Human Actions

Should We Put a Price on Everything? The Ethics of Tokenizing Human Actions

byFaari Labinjo
27 May 2025
0

The Most Influential Figures in Crypto History and Their Impact

The Most Influential Figures in Crypto History and Their Impact

byBobby Okposin
14 May 2025
0

Are Layer 2 Solutions Enhancing Ethereum—or Killing it?

byOlayinka Sodiqand1 others
6 January 2025
0

Beginner’s Guide To Earning Passive Income In Crypto | DeFi Planet

Simple Ways To Earn Passive Income From Your Crypto

byArjun Chandand1 others
1 September 2021
0

Read More

Chain of Thoughts

Are Stablecoins Bank Deposits?

Are Stablecoins Bank Deposits?

byOlu Omoyele
31 May 2025
0

...

DAOs and the Coordination of Human Endeavour

DAOs and The Coordination of Human Endeavour

byOlu Omoyele
27 April 2025
0

...

Should DeFi Be Regulated?

Should DeFi Be Regulated?

byOlu Omoyele
27 March 2025
0

...

Is Tokenization All That It’s Cracked Up To Be?

Is Tokenization All That It’s Cracked Up To Be?

byOlu Omoyele
26 February 2025
0

...

Markets Update

Your Weekend Crypto Roundup | June 2025 (Week 1)

11 hours ago

Your Weekend Crypto Roundup | May 2025 (Week 5)

6 days ago

Your Weekend Crypto Roundup | May 2025 (Week 4)

2 weeks ago

Your Weekend Crypto Roundup | May 2025 (Week 3)

3 weeks ago

Your Weekend Crypto Roundup | May 2025 (Week 2)

4 weeks ago

Your Weekend Crypto Roundup | May 2025 (Week 1)

1 month ago
Read More

Events

  • No events
  • Spotlight

    All about Ethereum
    All about Algorand
    All about Bitcoin
    All about Gora

    Press Releases

    Nibiru Launches ”Block Party” Aura Program to Reward Real DeFi Activity

    bychainwire
    5 June 2025
    0

    BYDFi and Ledger Launch Global Campaign with Limited BYDFi x Ledger Nano X

    bychainwire
    5 June 2025
    0

    $ZEUS Marking His Territory: Announcing An IP Collaboration with Original Zeus Artist and Trademark Holder

    bychainwire
    4 June 2025
    0

    Huma Joins the Global Dollar Network to Advance Stablecoin Adoption on Solana

    bychainwire
    4 June 2025
    0

    Zircuit Joins Binance Alpha: ZRC Airdrop & Trading Competition Go Live

    bychainwire
    3 June 2025
    0

    Read More

    ADVERTISING

    ABOUT

    TEAM

    CAREERS

    CONTACT

    TERMS & CONDITIONS

    PRIVACY POLICY

    © Copyright 2025 DeFi Planet

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In

    Add New Playlist

    No Result
    View All Result
    • News
      • People
      • Business
      • Crime
      • Regulation
      • Crypto
      • CBDC
    • Markets
      • Bitcoin
      • Ethereum
      • Stablecoins
      • Altcoins
      • Crypto ETFs
      • Memecoins
    • Policy
    • Articles
      • Press Releases
      • Opinion
      • Explainers
      • Guest Post
      • Sponsored
    • Directory
      • Companies
      • People
      • Products
      • Wallets
    • Multimedia
      • Videos
      • Podcasts
    • Learn
      • DeFi Basics
      • Tutorials
      • Reviews
      • Blockchain Fundamentals
    • Research
      • Case Studies
    • Explore
      • DeFi
      • Crypto Gaming
      • NFT
      • DAO
      • Metaverses
    • Jobs
    • Markets Pro
      • DeFi Planet Pro
      • Spend Crypto
      • Swap Crypto
      • Coin Prices
      • Crypto Exchanges
      • Crypto Analyzer

    © Copyright 2024 DeFi Planet   |   Terms & Conditions   |   Privacy Policy

    -
    00:00
    00:00

    Queue

    Update Required Flash plugin
    -
    00:00
    00:00