- Minimizing the Risks
Cryptocurrency has caused a huge stir around the globe and is slowly becoming the most widely used currency. With this new form of currency beginning to take over the world, we must be aware of the cyber risks that accompany cryptocurrency.
Alone in 2020, $1.9billion cryptocurrency was stolen through cyber-attacks. In this, 122 attacks were carried out on decentralized apps, blockchain apps, and crypto exchanges on the Ethereum platform.
In 2018, “in what is known to be the biggest single theft in the history of the world”, Hackers were able to steal 523 million NEM, having a value of £385 Million, from a Japanese crypto exchange – Coinbase.
The distinctive features of cryptocurrency that gave it an edge over other currencies are also its biggest vulnerabilities. Feature of anonymity due to blockchain technology being decentralized is a blessing as well as a curse. Anonymity and decentralized also act as the perfect opportunity for attackers to thrive. Decentralized means having no central authority to regulate or check each transaction or movement in the crypto market.
Apart from this, cryptocurrency is also the most preferred form of exchange during a ransomware attack. A ransomware attack is one, in which an individual or an organization has to pay the attackers a ransom amount, for not revealing their personal or important information to the world. This type of attack is known as cryptojacking.
Minimizing the Risks
Despite the financial benefits offered by cryptocurrency, there is no denying the fact, that any business involved in cryptocurrency is at immediate risk of falling a victim to cyber-attack. To mitigate or reduce the effect of these threats there are methods that an individual or an organization can implement to prevent any loss of money and data.
Firstly, a user requires to be cautious when accessing any messages, emails, or any other form of communication. When accessing a crypto account, a user should preferably use his personnel device. The crypto account should be fully secured with two-factor authentication, making it difficult for hackers to gain access to the account. For storage of the cryptocurrency, a user should utilize an encrypted storage solution, most preferably with certifications approved by the government, this will ensure that there are no backdoors through which attackers could access your account and steal money.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.
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