Dusting Attack

Dusting attacks are designed to de-anonymise cryptocurrency users by exploiting the transparency of blockchain networks. When a user unknowingly spends or moves the small dust amount received, attackers can trace the combined transaction history and potentially link multiple wallet addresses to a single entity. This can reveal the user's identity or financial patterns, making them vulnerable to phishing or other social engineering attacks. Dusting attacks highlight the importance of maintaining strong privacy practices, such as using privacy coins like Monero or Bitcoin mixers, avoiding reusing addresses, and monitoring wallet activity regularly. Many modern wallets now identify and isolate dust to prevent it from being spent. While not financially damaging, dusting is a serious privacy threat for crypto holders.