A dusting attack is a sophisticated form of tracking cryptocurrency wallet activity. It may seem insignificant at first glance, but it poses a real threat to user privacy and security.
In this article, we will explore:
What is a dust attack?
How it works;
Why it is used;
How to recognize and protect against it.
What is 'dust' in cryptocurrency?
In the world of cryptocurrency, dust refers to microscopic remnants of coins that are very small. For example, 0.00000001 BTC (1 satoshi) is considered dust in relation to the current price of Bitcoin.
What is a dust attack?
A dusting attack is a method where an attacker sends small amounts of cryptocurrency (dust) to a large number of addresses to:
track the movement of funds;
deanonymize wallet owners;
prepare for phishing, blackmail, or other types of attacks.
💡 Goal: to establish a link between addresses, often belonging to the same owner, and deanonymize the user.
How does a dust attack work?
1. Sending dust
A hacker sends a small amount (for example, 546 satoshis) to many public addresses.
2. Waiting for transactions
It tracks whether the user combines this dust with other UTXOs (parts of funds) to send the next transaction.
3. Blockchain analysis
If dust is used in one transaction with other coins, it is possible to link addresses together and then attempt to identify the user through exchanges, social media, or data leaks.
Who uses dust attacks and why?
Hackers - for preparing phishing or direct attacks;
Competitors - for analyzing company activity;
Scammers - to send spam with 'magic cryptocurrency', luring you to click on a phishing link.
Examples
In 2020, Litecoin users received dust from unknown addresses - it later turned out to be an attempt at mass wallet analysis.
Dogecoin and Bitcoin users regularly report unexpected receipts of tiny amounts.
How to protect against dust attacks?
✅ Ignore dust - do not use it in subsequent transactions. Most wallets allow you not to manually select small UTXOs.
✅ Use Coin Control (if available) - allows you to manually select which UTXOs to use for sending funds.
✅ Keep the majority of your funds in cold wallets that do not interact with the network unless necessary.
✅ Check the source of transactions - and use multi-addressing when transferring from exchange to wallet.
✅ Attention to phishing - if you receive a 'gift' and then get contacted on social media or via email with offers, it is almost certainly an attack.
Conclusion
A dust attack is not hacking or a virus, but it can be the first step towards compromising your anonymity. Understanding how blockchain works and what vulnerabilities can be exploited against you is key to safely managing crypto assets.
🔒 Protect your privacy, check incoming transactions, and do not use unknown 'dust'.