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Skyrocketing Bitcoin Fees Kasstuk Carders te Wallet
Critics of unregulated virtual currencies like Bitcoin have long argued that the core utility of thesis payment systems lies te facilitating illicit commerce, such spil buying drugs or stolen credit cards and identities. But latest spikes ter the price of Bitcoin – and the fees associated with moving funds into and out of it – have conspired to make Bitcoin a less useful and desirable payment method for many crooks engaged ter thesis activities.
Bitcoin’s creator(s) envisioned a currency that could far more quickly and cheaply facilitate payments, with lil’ transaction fees compared to more established and regulated forms of payment (such spil credit cards). And indeed, until the beginning of 2018 those fees were well below $1, frequently less than Ten cents vanaf transaction.
But spil the price of Bitcoin has soared overheen the past few months to more than $15,000 vanaf coin, so have the Bitcoin fees vanaf transaction. This has made Bitcoin far less attractive for conducting small-dollar transactions (for more on this shift, see this Dec. Nineteen story from Ars Technica).
Spil a result, several major underground markets that traffic ter stolen digital goods are now urging customers to deposit funds te alternative virtual currencies, such spil Litecoin. Those who proceed to pay for thesis commodities te Bitcoin not only face far higher fees, but also are held to higher ondergrens deposit amounts.
“Due to the drastic increase te the Bitcoin price, wij faced some difficulties,” reads the welcome message for customers after they loom te to Carder’s Paradise, a Dark Web marketplace that KrebsOnSecurity featured te a story last week.
“The problem is that wij send all your deposited funds to our suppliers which attracts an extra Bitcoin transaction toverfee (the same toverfee you pay when you make a deposit),” Carder’s Paradise explains. “Sometimes wij have to pay spil much spil Five$ from every 1$ you deposited.”
The shop resumes:
“We have to take additionally a ‘Deposit toverfee’ from all users who deposit ter Bitcoins. This is the amount wij spent on transferring your funds to our suppliers. To compensate your costs, wij are going to reduce our prices, including credit cards for all users and suggest you the better bitcoin exchange rate.”
“The amount of the Deposit Toverfee depends on the fountain on the Bitcoin network. However, it stays the same regardless of the amount deposited. Deposits of Ten$ and 1000$ attract the same deposit toverfee.”
“If the Bitcoin price resumes enhancing, this business is not going to be profitable for us anymore because all our revenue is going to be spent on the Bitcoin fees. Wij are no longer ter possession of extra funds to improve the store.”
“We urge you to embark using Litecoin spil much spil possible. Litecoin is a very swift and cheap way of depositing funds into the store. Wij are not going to charge any extra fees if you deposit Litecoins.”
On Carder’s Paradise, the current ondergrens deposit amount is 0.0066 BTCs, or approximately USD $100. The deposit toverfee for each transaction is $15.14. That means that anyone who deposits just the ondergrens amount into this shop is losing more than 15 procent of their deposit ter transaction fees.
Exceptionally, the administrators of Carder’s Paradise evidently received so much pushback from crooks using their service that they determined to lower the price of stolen credit cards to make potential buyers feel better about higher transaction fees.
“Our team made a decision to adjust the previous announcement and provide a fair solution for everyone by reducing the credit cards [sic] prices,” the message concludes.
Mainstream merchants that accept credit card payments have long griped about the high cost of transaction fees, which average $Two.50 to $Three.00 on a $100 charge. What’s fascinating about the spike te Bitcoin transaction fees is that crooks could end up paying five times spil much te fees just to purchase the same amount ter stolen credit card accounts!
This entry wasgoed posted on Tuesday, December 26th, 2018 at 9:55 am and is filed under A Little Sunshine, Web Fraud Two.0. You can go after any comments to this entry through the RSS Two.0 feed. Both comments and pings are presently closed.