Cyber Security In The Crypto World

A number of crypto-currencies have been the victim of ransomware attacks by hackers and some like Ethereum Classic and ZenCash have lost $millions because of blockchain security problems. 

Blockchain has grown rapidly in recent years, but it is not immune to security attacks. Because of the way blockchain works, the data on the chain is potentially viewable by all users and this can lead to both security and privacy issues.

Bitcoin is basically an online currency, it is intangible and decentralised and no government has control over it. Every bitcoin is stored in a “digital wallet” and it uses the blockchain technology where every single transaction is recorded there and although blockchain technology is very secure in theory, it is estimated that 33% of Bitcoin trading platforms have been hacked.

The problem of security comes from the use of keys and the transactions on the blockchain. A key is a set of letters and numbers that is the unique correspondence for your Bitcoin. It is secure, but once you put it into a Bitcoin wallet or on a trading platform, the security of that platform becomes vital. If someone accesses the key, the currency can be removed elsewhere. Hackers can target this security flaw and use it as a method to steal the money.

The average cost of a data breach for Bitcoin and crypto-currency isn’t known exactly, but the Wall Street Journal has reported that $1.7 billion in crypto-currency has been stolen in recent years.

One of the biggest scams in the history of crypto-currency didn’t come in the form of hacking or a data breach. The whole currency system of OneCoin was a scam. This was a multi-level marketing scam that drew people in with promises of big returns but unfortunately ended up costing people a lot of money. This is proof that hacking is not the only security risk for crypto. There are several cautionary tales.

Cyber threats to crypto-currencies are similar to those in other types of business. You need to treat your accounts on these platforms with a lot of caution.

The untraceable nature of some of the Bitcoin or crypto activity means that for hackers and scammers, it is an ideal target. Huge hacking groups can work on taking down individual accounts, as well as whole crypto platforms. Generally crypto-currency is reasonably safe. You can pay for your coffee with Bitcoin in some parts of the world. However, just like you would exercise caution with your online banking account, you should make sure that you don’t let any potentially exposing data get compromised.

Reuters:    WSJ:        IDStrong:      CNN:   HackerMoon:    Daily Hodl:     Image: Unsplash

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