- Among the key takeaways on cybersecurity risks facing cryptocurrencies by Lopez include crypto heists, crypto and ransomware, cryptojacking, and lack of standards.
- The crypto market has skyrocketed over the past few years and reached a trillion-dollar market, thus attracting all forms of evil.
Days are gone when novice traders could not access the cryptocurrencies markets. Major innovations including DeFi have made cryptocurrency adoption easy and seamless. Nevertheless, well-thought-out scams have sprung up, thus making crypto investments more technical than before. Moreover, a crypto investor has to go through many processes including choosing from thousands of promising projects.
Along the way, hackers have identified and compromised network loopholes, thereby siphoning users’ money.
Cybersecurity risks are way too many. However, let’s look at those likely to happen due to end-users attention lapse. Danny Lopez is the CEO of Glasswall, a cybersecurity company that offers protection against file-based threats, and expounded on the topic through media outlet, TheFintechTimes.
“In common with any digital asset, cryptocurrencies have their own security implications and vulnerabilities. As a result, organisations should understand their potential exposure to crypto risks,” TheFintechTimes noted. Adding
Of increasing concern are issues such as cryptocurrency theft, their use as the de facto banking system for organised crime and the lack of widely accepted security standards and regulatory frameworks, among others.
Cybersecurity risks facing cryptocurrencies
The crypto market has skyrocketed over the past few years and reached a trillion-dollar market, thus attracting all forms of evil. Among the key takeaways on cybersecurity risks facing cryptocurrencies by Lopez include crypto heists, crypto and ransomware, cryptojacking, and lack of standards.
Starting with the lack of standards, Lopez advocated for the open-source Cryptocurrency Security Standard (CCSS) that focuses on ensuring organisations have protections in place for the proper storage and handling of cryptocurrency wallets.
Notably, he noted that its multi-layered requirements are designed to make them more resilient against any form of network compromise.
Nevertheless, he pointed out that the decentralized nature of cryptocurrencies has made it challenging to regulate the industry. The end result for huge lapse protocol standards is a lack of confidence from investors, thus slowing down the adoption.
The next on the top cybersecurity risks facing cryptocurrencies is cryptojacking. Notably, cryptojacking involves the illegal use of someone else’s tech hardware to mine crypto assets through proof of work. This precise risk has become prevalent more so due to the rising cost of mining rigs. Additionally, electricity bills associated with crypto mining are also on the rise as crude oil prices rise by the day. Lopez noted;
While the risks associated with it are less apparent than other forms of crypto crime, it can prove costly for the victim who must foot the energy bill and who can also see a degradation in the performance of their IT systems,
The other major cybersecurity risk facing cryptocurrencies is the crypto heist. Large-scale and sophisticated hackers have crippled innocent crypto investors along the way. For instance, North Korean hackers are suspected to have stolen over $400million in digital assets last year.