You’ve probably heard of Bitcoin and other digital forms of cryptocurrency. It’s believed that cryptocurrencies like this will change the future of global finance, which affects how we secure these securities in the future. But with a rise in cryptocurrency, comes the added risk of cybercrimes that only proper crypto cybersecurity can solve.
There are now a vast number of different types of cryptocurrencies in use, and more are coming every day. The technology that stands behind cryptocurrency allows both institutions and people to make transactions without the need for banks, governments, and other intermediaries.
These digital assets are decentralized and independent, operating free of central banks. This makes them affordable and free of fees. This fact alone presents an excellent opportunity for both companies and individuals to make fortunes, and that’s precisely why every professional and business should be worried about cybersecurity.
However, where there’s a chance to make money, there are always also those who want to take it away. As cryptocurrency continues to grow, it makes them a large target for potential cybercrimes. So if you’re investing in crypto right now, it may be good to start thinking about the right crypto cybersecurity.
What Is Cryptocurrency?
A cryptocurrency is an electronic form of a digital asset or money that operates as a medium of exchange. It’s a form of electronic payment that uses cryptography to provide additional security when making transactions.
The trick with this form of currency is that governments and regulators haven’t figured out appropriate business norms and legal structures for managing and governing cryptocurrencies. This is where cybercriminals can benefit.
The Rise of Cybercrime and Cybersecurity
The decentralization of cryptocurrency is an excellent opportunity for cybercriminals. Cybercriminals can hack into cryptocurrency trading platforms and steal funds. Cryptocurrency is already the most preferred form of exchange in cases of ransomware attacks.
Ransomware incidents usually have a common thread. Cybercriminals can hide their true identities when asking for ransom in digital currencies. When making an exchange, they can easily convert cryptocurrencies into traditional forms without ever being discovered.
They can attack any business and ask for ransom in digital currencies as this form of cybercrime is untraceable, and no evidence leads back to the perpetrators. With cryptocurrencies spreading across the business world, cybercrime has become a real threat.
There are more and more criminal actors trying to use digital assets to keep their illicit activities under the radar. In addition to this, cryptocurrencies are an excellent way to launder funds.
Having the right cybersecurity in place can protect you from attacks like these in the future.
How Cryptocurrency Affects the Security of Your Business
While cryptocurrency might be the dawn of a new age, it also has its counterpart that’s not so popular – cybercrime. It comes in many forms, from ransomware to email scams. The truth is, cybercriminals love laundering money and scheming businesses using cryptocurrency scams.
So what does this mean in terms of your business?
Since cryptocurrencies are fully decentralized, there’s no central authority to monitor the transactions and overall crypto activities. Furthermore, cryptocurrencies involve low levels of regulations.
This makes cryptocurrencies a criminal’s haven. Every business that uses cryptocurrencies is a target unless they increase its cybersecurity measures. Cybercriminals can buy or sell virtual currencies without ever being discovered.
That aside, all businesses that make exchanges using cryptocurrencies are exposed to many risks. Exchange users and cryptocurrency traders risk making bad trades that can result in significant losses. Here are some of the most common cybersecurity risks:
- Phishing – a phishing campaign targets trading platforms with the primary goal aimed at stealing user’s credentials that scammers can use to ask for profit or ransom.
- Hacked trading platforms – Cybercriminals compromise trading platforms by stealing funds from the users.
- Compromised registration forms – Cybercriminals steal users’ information. They then sell it in the black market for profit.
- Third-party applications – This is an excellent way for cybercriminals to steal your user data and use it to target further attacks.
- Malware – Cryptocurrency-related malware enters the mining machines and steals the mining resources of the infected computer. It can also be used to steal cryptocurrencies from online wallets.
The best way to protect your business from these cyber-attacks is by implementing proper crypto cybersecurity protocols and practices as well as being extra cautious with the applications and sites you use.
Most of the time, hackers give up if a business uses a high level of cybersecurity protection. Just as cybercrime is on the rise, so is the initiative to ensure that cryptocurrency exchanges become regulated and monitored in the safest way possible. For assistance with any cybersecurity services, or IT consulting and services, reach out to Fulton May Solutions today!
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