HomeOPINIONCrypto hacks and 5 Best Practices to safeguard cryptocurrency

Crypto hacks and 5 Best Practices to safeguard cryptocurrency

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Recently, with the benefits of decentralization and the promise of transaction security, cryptocurrency is gaining acceptance in our digital world. Currently, the price-rise of cryptocurrencies alone resulted in an increase in the number of cybersecurity-related attacks (crypto Hacks).

According to a report by Cypher Trace $3.5 Billion was Sent from Criminal BTC Addresses in 2020 alone.

Introduction to crypto crimes

For understanding the measures to prevent scams we need to know more about these cyber crimes.

Cryptocurrency related cyber-crimes basically aims at getting crypto wallets illegally in order to steal the precious tokens. These are present within the wallets or have involvement in mining cryptocurrencies silently from the computer. Moreover, convincing a wallet owner to accept anything that makes the wallet vulnerable to attacks.

Currently, scammers are mostly interested in stealing digital assets by gaining access to private keys or seed phrases. Hackers can gain access to trading platforms and steal funds. For stealing cryptocurrency, often used methods are crypto-jacking, phishing, ransomware attacks, third-party applications and Blackmails.

Now, the surprising fact is that cryptocurrency is already amongst the most popular forms of payment for criminals in ransomware attacks. Subsequently, anonymity acts as a disadvantage because cybercriminals can conceal their identities while demanding a cryptocurrency ransom.

Furthermore, they have the ability to transfer cryptocurrencies into traditional forms without being detected. The ease with which hackers may operate in the cryptocurrency realm benefits them, making it more vulnerable to cyber-attacks.

How to Discover crypto hacks?

According to experts, Signature-based detection methods are not capable enough to discover crypto-mining code. Desktop antivirus tools are ineffective as well. Let’s find out ways in which it gets discovered.

  • Adequate Training: Firstly, Providing training to employees specially help-desk to identify early hints of crypto-mining. The sudden rise in customer issues related to slow performance of the systems are clear indications that need further investigation.
  • Network Monitoring Tools: It is easier to detect irregularities on business level as they have advanced monitoring tools in place. For instance, SecBI is working on an artificial intelligence system to analyze network data and detect crypto hacks and other specialized risks.
  • Be in-the-loop of latest crypto-trends: Keep up with the latest crypto community news. The crypto-mining code, as well as the delivery mechanisms, are always changing. Therefore, it is important to learn from others who are managing these threats for better strategic decisions.

What to do after identifying a crypto hack?

  • Immediately Blocking website-generated scripts and deploy anti-crypto mining tools.
  • Simultaneously, Update and delete browser extensions on the system.

Effective ways to keep your crypto currencies safe

There are a few techniques to keep your crypto wallet safe from cybercrimes.

1. Hybrid security to crypto wallet

Online wallets are becoming increasingly popular, attracting the attention of hackers. Store the majority of cryptocurrency offline in the physical form, with only a small amount in an online wallet. However keeping public key and private key secured with multi-factor authentication is often a good practice.

2. Dual passwords

Reusing passwords across the platforms makes your account vulnerable to hackers. Cryptocurrency is a cutting-edge technology that is rapidly growing. According to industry experts, the quickest and most straightforward approach to protect your wallet is to have limitations on your vulnerabilities by using different, strong passwords, preferably with two-factor verification and password rotation.

3. Custodial Wallets

This is a valuable and trustworthy storage option for your cryptocurrency. Custodial wallets hold and manage cryptocurrencies independently by a safer company or a cryptocurrency exchange app for eg: Coinbase, Binance etc.

The disadvantage of custodial wallets is that any cyber attack on the company also affects your funds. At last, extensive research about security features of cryptocurrency wallets, exchanges, brokerages and mobile-apps will minimize the future-threats.

4. Mobile phishing

Many people who have a bitcoin wallet use a mobile app to keep track of their funds. Malicious hackers are driven to target investors with phishing attacks in order to steal your login credentials when the price of these commodities rises.

It’s preferable if you’re aware of such ruses to gain access to your information. They use shady tactics and even use mobile phishing apps. Before entering your sensitive personal information, make sure you’ve downloaded the correct app on the correct website.

5. Secure Internet Network

When doing crypto transactions or trading, avoid using public Wi-Fi networks. Make sure your Wi-Fi network is secure with a strong password. Even when utilizing your home network, use a VPN for additional security.

Next, The change in location and IP address by the VPN makes your online activity less vulnerable and hidden from cyber threats.

So, if you plan to invest in cryptocurrencies in the near future, then make sure you have a solid cybersecurity skill set to protect your money!

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