A Quick Guide on Cryptocurrency Security Threats

Cryptocurrencies

With time, the acceptance of cryptocurrency is increasing significantly. The evolution of this digital currency has taken the market by storm because of its characteristics like untraceable, decentralized, highly secured digital ledger, etc. Even the critics have admitted that 2021 has brought a massive storm in the crypto market. According to Transparency Market Research report, the cryptocurrency market will grow to 6.7 billion USD in 2025 from 0.5 billion in 2016. This growing trend lures cybercriminals which leads to cryptocurrency security threats. There are numerous ways cybercriminals are trying to exploit cryptocurrencies. This article will give a complete walk-through of these different cryptocurrency security threats.

What are cryptocurrency security threats?

Cryptocurrency security threats are cybersecurity risks that can pose various challenges to cryptocurrencies. According to some reports, cybercriminals have stolen 12.1 billion USD from 2011 to 2021. They did so by exploiting vulnerabilities in cryptocurrency systems & exchanges. The most common countries where cryptocurrency security threats were prominent are South Korea, Japan, the United Kingdom, the United States, and China. Let us explore the top cryptocurrency security threats cybercriminals are using to exploit cryptocurrency systems.

Another report states that over the past two years, more than 2.5 billion USD in cryptocurrency got lost to cross-chain bridge hacks. Thus cryptocurrency developers should develop secure systems without vulnerabilities to prevent crypto-hackers, or they have to face regulations by 2023.

Crypto Cyber Threats

Various prominent Cryptocurrency security threats

Here is a list of some apparent security risks to cryptocurrencies.

i. Phishing attacks:

Cybercriminals use phishing techniques to impersonate a credible firm (could be a crypto trading medium/platform) or individuals through emails and influence them to carry out actions. They can redirect them to fake pages to steal their crypto wallet credentials.

ii. Malicious or illegal trading platforms & apps:

We all know that cryptocurrency is in its infancy. Thus, numerous cryptocurrency wallets, trading platforms, & apps are springing up to earn the trust of potential investors. Not all platforms or apps are trustworthy. Some got deployed by cybercriminals to harvest real money from you through fraudulent means.

iii. Blockchain bridging threats are on rise:

Different cryptocurrencies use different blockchain designs that are subject to distinct rules. Set suppose someone has Ethereum but wants to spend in Bitcoin. They have to convert it. Attackers often leverage the bugs in these cross-chain bridging. Some of the oversized cryptocurrency hacks we have witnessed so far involve cross-chain bridges, such as Poly Network, Ronin, and Worm-hole.

iv. Insecure or buggy code:

Another notable cryptocurrency security threat occurs when developers do not pay proper attention to the code and its security measures. Secure coding without bugs should be a priority from the beginning of any cryptocurrency project. Hackers also look for vulnerabilities in cryptocurrency trading platforms & websites. Then they inject malicious code into those websites or web advertisements (adware) to deploy malware & steal the cryptocurrency.

v. Crypto-malware:

Cybercriminals have started designing a unique type of malware. They infect the cryptosystems and platforms that handle such digital assets. Cybercriminals dupe the victim into downloading or installing malicious code on their system through drive-by-download or phishing-like tactics.

vi. Security of cryptocurrency account:

Users can access & transfer their crypto assets only if they have the “private key.” Private keys are primarily complicated long passwords. Many cryptocurrency account owners keep their private keys on their systems, such as smartphones or computers. That lures the attacker to take access to your system and steal your private key to gain access to your cryptocurrency account. Since there is no central organization/agency to regulate the cryptocurrency; hence, there is no chance of recovering the private key if stolen.

How to prevent cryptocurrency security threats?

The Cryptocurrency system has come a long way over the past few years. To leverage its benefit further into the future, we should take preventive measures and follow certain best practices.

✓ Developers should focus more on secure coding and agile testing and auditing. Also, companies involved in cryptocurrency must leverage penetration testing on their platforms and websites.

✓ Cryptocurrency account owners must enable multi-factor authentication through biometrics, magic links, or OTPs.

✓ Users should also enable “Safe Browsing” on their browser by fostering “Enhanced protection.” It will automatically warn users if the website or platform has any malicious files or adware on the website.

✓ Users should not keep their private keys in their systems (smartphones or PCs).

✓ Installing anti-malware in the system can also help prevent users from crypto-malware and other malicious programs.

✓ Users should not open unknown emails, download attachments, or click links that could redirect users to other websites.

✓ Enterprises should educate users through app-based campaigns, newsletters, etc., about the do’s & don’ts when using a cryptocurrency wallet or platform.

✓ Cryptocurrency account owners must do thorough research before using any platform. They should check whether that platform or app is doing any scams or is legitimate.

✓ Enterprises can contact security firms & freelance professionals to provide additional guidance & perform vulnerability assessment penetration testing (VAPT) against cryptographic security threats.

Conclusion

In general, cryptocurrency is safe & can become even safer if we follow certain best practices. This article discussed some trending cryptocurrency security threats and how to stay ahead. Through proper prevention measures, we can leverage cryptocurrencies to their full potential. If you are looking for cybersecurity trainer, data privacy expert, and infosec professional, VAPT checks, DM me here with your query.