Brute force is a cyberattack method where attackers systematically try various character combinations, passwords, or keys to discover sensitive information like passwords, PINs, or encryption keys. This trial-and-error approach continues until the correct solution is found. While simple, brute force can be highly effective against weak or insufficiently complex passwords.
Table Content:
- Why are Brute Force Attacks Common in Crypto?
- Protecting Your Crypto Assets from Brute Force Attacks
- 7 Common Brute Force Attack Methods
- Simple Brute Force Attack
- Dictionary Attack
- Reverse Brute Force Attack
- Hybrid Brute Force Attack
- Credential Stuffing
- Rainbow Table Attack
- Distributed Brute Force Attack
- The Future of Brute Force Attacks in Crypto
- Multi-Signature Wallets (Multi-Sig)
- Biometric Authentication – Passkeys
- Zero-Knowledge Proof Technology
alt: Illustration of a brute force attack
In the cryptocurrency realm, brute force attacks pose a significant threat. Most digital wallets, transactions, and asset storage rely on strong passwords and complex encryption keys. These attacks can target both individual wallets and blockchain services, potentially leading to substantial losses if successful.
Recent statistics highlight the severity of brute force attacks in the crypto market:
- A 2023 Chainalysis report indicated that brute force and phishing attacks contributed to over $4 billion in losses across the cryptocurrency market.
- Coinbase reports thousands of failed login attempts daily, many attributed to brute force attacks.
- Glassnode suggests that approximately 20% of existing Bitcoin wallets have weak passwords, making them vulnerable.
Why are Brute Force Attacks Common in Crypto?
Two core security elements exist in crypto:
Private Keys: These long character strings (typically 256-bit) control your crypto assets. A 256-bit key generates 2^256 possible combinations (approximately 10^77). Exhaustively searching this space is computationally infeasible, even for the most powerful supercomputers. Even if all the world’s supercomputers combined to brute force a 256-bit key, the time required would exceed the universe’s lifespan. Cryptographic keys are designed with sufficient length and randomness to resist brute force, protecting them from trial-and-error decryption. Therefore, brute force attacks often target user login passwords on exchanges or wallet applications, which tend to be shorter and less complex.
Login Passwords: This element is often overlooked. Many users choose short or easily guessable passwords (e.g., names, birthdates), making them attractive targets. A 2022 Bitwarden survey found only 40% of crypto users employed passwords longer than 12 characters, and fewer than 30% enabled 2FA (two-factor authentication), leaving them vulnerable. Major exchanges like Binance report thousands of brute force attempts monthly, targeting accounts with weak passwords or lacking 2FA. Brute force attacks are also facilitated by readily available automated tools. Hackers utilize software like Hydra or John the Ripper to automatically test thousands of password combinations within minutes. Weak passwords are easily compromised.
alt: Diagram of a typical brute force attack process
Protecting Your Crypto Assets from Brute Force Attacks
To mitigate brute force risks, major exchanges like Coinbase implement preventative measures such as login attempt limits, OTP requirements, or biometrics. However, users must also take proactive steps:
- Use long, complex passwords.
- Enable 2FA.
- Securely store private keys.
Cryptocurrency lacks a central authority for asset protection or recovery after attacks. This leaves individuals and organizations vulnerable without robust security systems.
7 Common Brute Force Attack Methods
Simple Brute Force Attack
Attackers sequentially try every character combination. Effective against short, simple passwords, but impractical for longer, secure ones.
Dictionary Attack
Uses a list of common words or passwords (a “password dictionary”). Effective against predictable passwords.
alt: Different types of brute force attacks
Reverse Brute Force Attack
Uses a common password to attempt logins across multiple accounts. Checks for accounts using easily guessable passwords.
Hybrid Brute Force Attack
Combines dictionary and brute force attacks. Appends characters, numbers, or symbols to dictionary words.
Credential Stuffing
Uses leaked credentials from previous breaches to access other accounts. Effective if users reuse passwords.
Rainbow Table Attack
Uses precomputed tables (rainbow tables) of passwords and their hashes. Compares hashes to find matching passwords.
Distributed Brute Force Attack
Employs multiple devices or servers for simultaneous attacks, reducing cracking time.
The Future of Brute Force Attacks in Crypto
Blockchain systems and crypto services are constantly evolving, adopting new security technologies. Future trends include:
Multi-Signature Wallets (Multi-Sig)
Require multiple private keys for transaction completion. Enhances security, even if one key is compromised.
Biometric Authentication – Passkeys
Biometrics (fingerprint, facial recognition) via Passkeys offer significant advancements in mitigating brute force. Replacing traditional passwords with unique biological identifiers drastically reduces attacks on weak passwords.
Zero-Knowledge Proof Technology
Allows users to prove access without revealing sensitive information. Ideal for crypto transactions, enabling secure verification without exposing private keys or passwords.
