Data Breaches In Digital Currency: What You Need To Know
The popularity of cryptocurrency has brought many into the digital industry, even if they don’t have a basic knowledge of how the system operates.
Those who fall in this category prefer putting in their funds with an exchange that will use it to trade with a guaranteed profit at a certain time.
However, some go the other way around by doing some little research, purchasing from an exchange, and keeping it in their wallet, while some were unlucky, landing into the hands of fraudsters.
This is bound to happen in an unregulated industry where anonymity is becoming the other of the day. Being one of the challenges being faced by the industry, it had been discussed in my earlier articles on how to locate a good exchange and ensure that you don’t lose your life saving as you embark on this paradigm shift.
Meanwhile, the vast improvement in the digital currency industry has come with its other challenge. Top on the list is a data breach that has eventually led to the hacking of people’s wallets, and their tokens end up being stolen by an unknown hacker. Therefore, this article will focus on everything you need to know and understand about the data breach in the industry.
Before going into the discussion proper, let’s acquaint ourselves with the meanings of some of these words or terminologies used to do justice to the topic.
Data: They refer to facts and statistics collected together for reference or analysis. They are units of information collected through observation.
Breach: This is an infraction or violation of a law, obligation, tie, or standard.
Data breach: This is an incident that exposes confidential or protected information. It usually involves the loss or theft of someone’s personal information like Social Security number, bank account or credit card numbers, personal health information, passwords, or email.
Since we already know what cryptocurrency, blockchain, and smart contracts are all about, there is no need to go further than the terms explained above.
It should be noted that data breaches could be intentional or not. But on most occasions, it is intended to cause non-physical harm to the owner of the information.
In the technological space, several data breach has occurred that hackers got into account of people and ended cloning a credit card to withdraw the user’s fund. The same has happened in the social media space, where hackers succeed in hacking the social media information of top celebrities and using it to defraud the public. The ones that didn’t go to the length of hacking create parody accounts and thereby deceive the public.
Most of the time, damages have been done before the public’s attention is called into it. For instance, this year, a hacker succeeded in breaching through the data of top leaders like former US President Barack Obama, amongst other leaders, defrauding people of over $120,000 worth of cryptocurrency tokens.
Why hackers succeed with data breach
Despite the security features offered by the blockchain technology in terms of bitcoin wallets, hackers have continued to devise several means of gaining access to such wallets and empty them into unknown accounts. Some of the reasons why hackers have succeeded in breaching people’s data will be discussed here.
Hackers usually infect computers and mobile devices with zero-day key-loggers from cybercriminals and nation-states.
In the digital currency industry, they have been able to steal people’s tokens from some electronic wallets run by novices who don’t understand much about the protective tips of the business. They are the likes that have no strong crypto, password management, multi-factor authentication, and good computer hygiene, including patch management. They also lacked vulnerability remediation, next-generation antivirus cleanup, advanced firewalls, host-based intrusion prevention, and even daily backups, making their wallets to be easily compromised and their crypto-currencies stole.
This has also affected some online trading sites and platforms, making few of them 100%. In this deregulated market, prepare to see online trading fraud, theft of online cryptocurrency accounts, and rampant online hacking.
How to prevent data breaches
Having analyzed most of the things that aid data breach, it important to ensure the following.
- Have and build strong crypto password management.
- Ensure multi-factor authentication
- Ensure good computer hygiene and patch management.
- Have vulnerability remediation on your system.
- Ensure the purchase of next-generation antivirus cleanup and advanced firewalls.
Avoid host-based intrusion prevention and daily backups.
These are some of the laid down guidelines that have been followed by many trading platforms and exchanges that have lost billions of tokens to fraudsters. It is therefore important you follow them to the latter.
Most of the companies whose $1.9B in cryptocurrency was stolen by hackers last year have learned their lessons and won’t want to repeat the same mistake. It is also important to do the same.
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Nothing on Cryptinus constitutes professional and/or financial advice. Always think for yourself and make sound decisions when investing. Never invest money that you can’t afford to lose.