Is Blockchain really immune to cybercrime attacks?
Is Cryptocurrency's Block-Chain Safe from Cyber Crime Attacks?
Just because Cryptocurrency services like Bitcoin uses "Block-Chain" technology, will hackers stop attacks? Think again. Using technology does not protect anyone from being hacked. There was over $1 billion in estimated hacking losses suffered by cryptocurrency exchanges last year alone. You need the most comprehensive protection available.
Blockchain technology is attracting a lot of interest as it helps to solve business needs beyond centralized payments. It has enabled bitcoin-based online transactions and enforced security, making it hard for people to compromise the integrity of online records without being detected due to the distributed consensus. However, with the continuous advancement of technology, there are security risks that also affect blockchain technology.
Blockchain technology is facing many forms of security threats, such as malware, crypto-jacking, and phishing. Cybercriminals use different malware to attack blockchain technology, mainly to acquire cryptocurrency. Phishing attacks allow cybercriminals to steal from any wallet. In addition, through crypto-jacking, cybercriminals can steal using the currency owner's computer. These thefts have left many people wondering whether they are safe. However, there are many techniques to secure your digital money. Learning about these attacks and practices is essential as it helps one or an organization make more informed decisions to secure their systems. Besides, it is also crucial to understand this technology before engaging in it.
What's in it to protect ?
- Cyber insurance is specifically designed for innovative companies at the intersection of blockchain and Cryptocurrency.
- Costs to respond to an extortion incident, including money, securities, and virtual currencies paid
- Costs to replace computer systems and other technology damaged in a cyber attack
- Funds transfer fraud losses arising from a security failure or social engineering.
- Coverage for consequential reputational harm loss, and media and PR costs to respond to an incident
- Coverage for technology errors & omissions — professionalliability coverage for tech companies
- Enhanced coverage for denial of service (DDoS) attacks that impede legitimate traffic to your business
Blockchain and Cryptocurrencies
What are cryptocurrencies?
A cryptocurrency is virtual cash that serves similarly to ordinary money like dollars. It doesn’t have a physical form like coins; you cannot use it anywhere, and you won't be able to carry it around. This form of money is stored electronically in a digital wallet. The most common types of cryptocurrencies include Bitcoin, Ethereum, Ripple, and Litecoin. Cryptocurrencies are secured and controlled using cryptography through the use of digital signatures or hashing.
This form of money is beneficial to business people who carry out large transactions around the world. It eliminates the risk of carrying physical cash; however, it also has its threats from cybercriminals. Fortunately for bitcoin users, there are several measures in place to prevent any theft of these currencies.
Risks of using cryptocurrencies
Security is a crucial aspect for any user of a monetary system, especially those using cryptocurrencies. These electronic monetary systems have many potential weaknesses that make them as sensitive as traditional currencies. For instance, hackers who have great knowledge of cryptocurrencies and malware can use their skills to hack your computer system and transfer funds from your wallet to their own digital wallets. These illegal cryptocurrency exchanges have made many people lose their funds. Moreover, the fact that there are not tight regulations controlling cryptocurrencies' value makes it a risky investment for companies.
Cryptocurrencies are also not stable; this means that fluctuations in the market can lead your crypto money to experience a big price change. Overall, you must familiarize yourself with all risks involved before beginning to trade safely. Otherwise, it would not be worth exchanging cash for electronic money when cybercrimes present an equal threat as a physical crime.
Falling victim to cyber-crime
Unfortunately, cybercriminals constantly continue to find new ways of committing fraud in the online space. If you and your company work with cryptocurrencies, you should be well informed about your insurance coverages regarding cryptocurrencies. Unfortunately, some regular cyber insurances do not offer coverage for cryptocurrency losses. However, if you have coverage for cryptocurrencies and fall victim to cybercrime, you will want to take immediate action after noticing the malware breach. For instance, if you have cyber insurance, you will want to contact them first to investigate and monitor the attack source. This might allow you and your company to stop further damage and losses.
If you also decide to claim insurance money, you will probably also need to make a police report and an inventory of the losses you suffered. You will want to follow each of the steps and paperwork required from your insurance company to facilitate and accelerate the claim process.
Cyber insurance importance
Cyber insurance plays a crucial role in helping you cover some of the losses incurred during a cyber-attack. Similarly, cybersecurity is essential as it would help secure your data and have a plan previous to any cybercrime happening. Cyber insurance enables you to cover the cost of malware attacks and manage this situation using trusted computer experts. So even though your regular cyber insurance might not offer specific coverage for cryptocurrencies, having a team that provides cybersecurity against malware will allow you to feel safer.
Cyber insurance coverages
Cyber insurance helps a business to recover from cyber-attacks, data breaks, or malware. It covers data loss and ensures that any data hackers have taken hostage is retrieved or recreated. Also, it substitutes for loss of transferred funds, computer fraud, loss of revenue due to breaching of systems, and legal claims. Overall, With the increase of cyber-attacks and businesses using an online system for payments, it is crucial to have cyber insurance. Moreover, if you work with a lot of cryptocurrency money, it will also be worth asking your insurance if they have specific insurance for cryptocurrencies.
Keeping cryptocurrency safe
It would be best if you acquired a digital wallet that best fits your trading needs. Also, research the different digital wallet providers to ensure you get a trusted provider. Once you get a wallet, ensure you have two ways to authenticate your identity for access to your wallet. The authentication steps enable you to go through a verification process before completing activities like withdrawing or sending funds. Therefore, this will provide extra security for your cryptocurrency.
For example, when someone tries to access your wallet, you can set your account to notify you and act fast to prevent theft. Also, your digital wallet should have a strong password; this will make it difficult for hackers to bypass. Finally, you will also want to make sure that you regularly backup your wallet and keep your virus protection updated.
In summary, you can trust an insurance company to protect your assets. However, ensure that the insurance firm you are using is trustworthy and get extra coverage if you deal with cryptocurrencies. You can research different insurance firms and their coverages regarding cyber losses and cryptocurrencies. Always remember the safety of your digital money is very critical, and you will want to keep it as safe as you can.