With the development of cryptocurrencies and blockchain technologies, the number of cybersecurity threats is also increasing. In this article, we will consider the main risks and propose protection strategies that will help users secure their assets and funds.
In this article, the founder of Crypto Story Bank Ivan Grinev provides recommendations for safeguarding your funds. And also he offers protection strategies that will help users to keep their assets and funds secure.
Types of attacks and fraudulent schemes
Cybercriminals use various methods of attack and fraudulent schemes to steal cryptocurrency assets. Among the most common threats:
- Phishing: attackers disguise themselves as well-known cryptocurrency companies or services and try to gain access to users’ personal data and funds.
- Malware: viruses that are installed on users’ computers and smartphones in order to steal private keys and passwords.
- Man-in-the-middle attacks: attackers intercept communications between two parties to steal data or redirect payments to their wallets.
Even large companies are subject to hacks and attacks. We will tell you about the most famous and high-profile cases.
Hacking Mt. Gox (2014)
Mt. Gox was the largest Bitcoin exchange in the world before it was hacked in 2014. As a result of the attack, about 850,000 BTC (approximately $450 million at that time) were stolen, which became one of the most significant hacks in the history of cryptocurrencies. Most of the stolen funds were never returned to the owners, and Mt. Gox was forced to declare bankruptcy.
Hacking the DAO (2016)
In 2016, the DAO platform was hacked, on which a decentralized venture fund based on Ethereum was created. As a result of the attack, about 3.6 million ETH were stolen (approximately $50 million at that time). This incident led to the division of the Ethereum network into two parts: Ethereum and Ethereum Classic.
Hacking Coincheck (2018)
In January 2018, the Japanese cryptocurrency exchange Coincheck was the victim of a cyberattack, as a result of which more than 500 million NEM tokens worth about $530 million were stolen. This case became one of the largest hacks in the history of cryptocurrencies and caused a wave of discussions about the need to regulate cryptocurrency exchanges.
Hacking Binance (2019)
In May 2019, the largest cryptocurrency exchange Binance became a victim of a hacker attack, as a result of which 7,000 Bitcoins (about $40 million at that time) were stolen. Hackers used various techniques, including phishing and viruses, to gain access to user accounts and conduct a major theft of cryptocurrency. Binance exchange reimbursed the losses to its users from its own insurance fund.
Accordingly, it is necessary to protect your own assets as carefully as possible, without neglecting at least the basic protective strategies. At the Crypto Story Bank we recommend the following rules to our employees and clients.
To protect their assets and funds, users should follow a number of recommendations:
- Use reliable and proven cryptocurrency wallets and exchangers.
- Do not open suspicious links and messages from unknown senders.
- Regularly update the antivirus software and operating system on your devices.
- Enable two-factor authentication (2FA) for all your cryptocurrency accounts and wallets.
- Create backups of your private keys and store them in safe places.
- Regularly disconnect your browser wallets from all decentralized applications.
Threat awareness and training
One of the most effective ways to protect against cyber threats is training and awareness of their existence. Participating in training programs and reading articles on cybersecurity will help users keep abreast of the latest threats and develop skills to prevent them.
Cooperation with the Crypto Community
Interaction with the cryptocurrency community can help users get up-to-date information about fraudulent schemes and attacks. Community members often share information about new threats and ways to prevent them.
Appeal to specialists
In case of problems or suspicions of a cyberattack, users should contact cybersecurity specialists. They can assess the level of risk and suggest appropriate protection measures.
Cybersecurity is an extremely important aspect when working with cryptocurrencies. Knowing the main threats and following protection strategies, users will be able to secure their assets and funds from cybercriminals. It is important to always be on the alert and not forget about precautions when managing your assets and using dangerous cryptocurrency services such as brauser wallets for cryptocurrency. At the Crypto Story Bank, we uphold banking security standards for our clients’ funds and conduct regular training sessions for our employees on internal operational procedures.