How does a dusting attack work to take my assets?

Dusting attacks exploit blockchain transparency to track transaction activity and try to reveal the identity of crypto wallet owners. The attack takes place in several stages:

1. Dust Shipping

The perpetrator sends a small amount of crypto assets (dust) to the target wallet. The amount is so small that it is often invisible in the transaction history of some wallets, so the victim may not realize they have received it.

2. Activity Monitoring

Because blockchain is open, the perpetrator can track the movement of the dust. If the victim unknowingly uses it in another transaction, the perpetrator can link the various wallet addresses involved.

3. Information Collection

By matching transaction data with external sources, such as platforms that require identity verification (KYC) or transactions on public marketplaces, perpetrators can link a particular wallet to its owner.

4. Transaction Pattern Analysis

Attackers observe wallet activity patterns, such as the time and amount of transactions, for purposes such as phishing, extortion, or financial fraud. This data allows them to devise more effective attack strategies against targets.

5. Dusting Attack Shipping Costs

Although the nominal value of coins sent during a dusting attack is usually very small, the cost of sending them can be many times higher. This cost must be borne by the sender, who is the perpetrator of the dusting attack. As the cost of sending coins increases on some blockchains, this type of tactic is also decreasing.