What has added to investors’ pain is the incessant cyber thefts that have siphoned off billions of dollars from the accounts of crypto holders. Since crypto transactions are usually irreversible, stolen coins are almost impossible to recover.
Cybercriminals stole it Cost $4.5 billion of digital currency will more than double in 2021 just for 2020. Only for the first half of this year nearly $2 billion the value of cryptography was lost due to hacking, in such cases it increased by 60%.
Crypto theft remains a growing problem. As more investors turn to digital assets to build wealth or diversify their portfolios, learning how to protect crypto holdings has become an important part of investing. Here’s your ultimate guide to keeping your crypto safe.
What Makes Crypto Vulnerable to Hackers?
Cryptocurrencies live on blockchain, a form of digital ledger of transactions. Because crypto transactions are decentralized, there are no intermediaries to control them. Motivated hackers with in-depth knowledge of blockchain technology can take advantage of this by finding weaknesses in the security mechanisms of crypto exchanges and the Internet crypto trading platformsand the often poor understanding and enforcement of security tactics by investors.
“Crypto vulnerabilities can arise from a lack of security awareness or failure to use security standards like multi-factor authentication,” says Joe McGill, a researcher at TRM Labs, a blockchain company that helps governments and financial institutions fight fraud. money laundering and financial crimes.
Malicious links and software can also make crypto vulnerable. If clicked or installed, they can compromise sensitive information, notes McGill, who is a former U.S. Secret Service agent and postal investigator.
There is phishing the main cause of theft in the crypto industry as in the traditional world of finance. “Fraudsters host fake websites posing as popular brands to trick users into signing up to malicious contracts or steal personal financial information,” says McGill.
More recently, account takeover attacks, or ATOs, have become increasingly popular. ATO is an automated fraud where criminals gain access to online accounts using bot-driven hacking techniques such as credentials stuffing or credential hacking.