Lately, emerging reports in the media across various countries have manifested various security breach on crypto. Hackers and mischievous individuals have overtly feasted on the industry raiding numerous platforms while making away with a ton of fortunes. It’s understandable why the industry has come under recent attacks by these hackers, one cannot deny the lucrative posture of crypto.
Nevertheless, questions should be asked over the incessant security breach on Crypto. Investors, Tech builders, exchange platforms, and other stakeholders in the industry should face fierce questioning. However, if we divulge further into these questions, exchange platforms and Tech organizations won’t have a place to hide.
Questions should be asked about how well those platforms that had previously endured attacks are grounded against such mishaps. How well is their defense mechanism strong enough to repel hackers’ raids? What are the efforts to prevent further security breach on Crypto?
How consistent security breach on crypto affects the industry
Recently, Ronin, Ola Finance, and Bored Ape Yacht Club all became vulnerable to Hackers’ attacks. According to Atlast VPN, Investors have lost over a whopping $700 million to different security breaches on different Crypto platforms. The report only covers attacks that occurred between January and March 2022.
In addition, Security Breach on Crypto firms like Solana, and Binance ecosystems contributed to over 50% of the loss. These figures should indeed set the whole industry on a high alert. These attacks keep rubbing Salt into the wounds of investors who are battling hefty tax rates in their respective countries. Those who are yet to receive the hammer of these outrageous tax rates are battling uncertainty surrounding crypto regulation.
Coupled with the recent dip in the price of cryptocurrency, it is definitely a difficult time for investors and coin holders. Despite the turbulences, Government, and regulators have shown little interest in protecting investors and their investments. Instead, they are sternly keen on squeezing out a sizeable revenue from the industry.
Undoubtedly, one cannot deny how effectively the increasing cases of security breach on crypto is affecting the industry. Investors are bleeding a good part of their investment to Taxation, while hackers keep ripping it apart. Notably, little can be done regarding crypto taxation, nonetheless, a lot can be done to prevent a security breach.
How Stakeholders can tackle the situation
Firstly, it is important to note that to curb the mischievous trend, every concerned stakeholder has a role to play. These responsibilities rest on Blockchain Tech builders, the Exchange platform team, Investors, and regulators.
Notably, Investors are Coin holders often bear the consequences of security breaches on crypto. Therefore, they have the most vital role to play in curbing this menace.
One of the most prominent ways Hackers device to pull their fraudulent acts is through “Details dubbing”. These miscreants sniff around the webspace, and most especially social platforms to pick on discussions relating to crypto. They wait for Coin holders to lodge complaints about a slight ditch. During that process, these holders tend to post their personal details like Emails and phone numbers.
Further, they go on to reset wallet passwords attach to the mail or phone number, then wire every coin therein. However, this can only be possible through the help of a customer service agent. During the aforementioned process, the hackers pretend to be the owner of the wallet and then deceive agents for details.
Therefore, customer care agents must have a strong “Know Your Customer” structure to help detect any impostor. Also, Investors and Coin holders must be careful about revealing their details publicly.
Decentralized exchange to the rescue
The increasing security breach on crypto isn’t limited to customers’ negligence and vulnerability alone. A direct attack on Exchange platforms can also manifest crypto theft. Thus, the call for decentralized Exchange platforms is gradually gathering momentum. The ideology of Centralize exchange platforms rallies around using a middle man to execute purchases and sales of crypto assets. These centralized platforms serve as the middle man in this scenario, in the process, they retain clients’ earnings. This pattern of trade is similar to the system of conventional banks.
Lastly, decentralized exchange platforms can be the savior’s shelter against the increasing security breach on Crypto. Through decentralized exchange platforms, investors take absolute control over their tokens. They won’t have to rely on centralized exchange platforms to take charge of their funds.
On this note, investors will have to take a very cautious approach toward revealing their details on social media. A direct attack on their exchange platform will no longer affect their investment. Therefore leaving them with full control over the security of their tokens.