Crypto-Hackings on Exchanges See Almost 400% Climb
According to research conducted by Group-IB (GIB), a Russian security company, cryptocurrency exchanges have seen an increase of 369 percent in accounts being hacked into since last year, displaying only weaker data security during a period of rising interest directed towards crypto in general.
Currently, and according to GIB, no cryptocurrency exchange operational as of now is able to guarantee 100% protection for any of its users. Aside from malicious attempts at acquiring private data through any means, including hacking, phishing, and other methods, data leaks also occur as a result of faulty source codes and general vulnerabilities within an exchange.
Additionally, cryptocurrency exchanges do not provide enough attention to protective and security measures regarding sensitive information and crypto assets. According to the research, this is why five of the current operational markets, 19 in total, have fallen victim to cyber-attacks. Among the targeted ones were Bithump, Bitfinex, and others, as a result of GIB utilizing its Threat Intelligence solution to study over 700 accounts that have been broken into.
Ruslan Yusufov, GIB’s project director, has stated that as of now, the industry is not fully equipped with the requirements to protect itself, let alone offer robust and ensured protection for traders and investors. Additional data from the research has pinpointed three superpowers as the main targets of cyber-criminal activity. The three countries leading in fraud and scams are the United States, Russia, and China. Additionally, every third user being attacked occurs within the US.
GIB’s researchers monitored cyberattack activity, noticing a massive surge during January of this year in which a massive increase of 689 percent occurred since 2017 and as the project director has stated, it will carry on throughout this year. According to him, to ensure protection and handle this situation accordingly, users and crypto-exchanges must reinforce their protective measures.
Exchanges have been urged to utilize a double-layered verification protocol, conduct regular inspections of security and to relocate assets and funds. In regards to exchange users, the company suggests more thought into passwords as simple ones are often easily guessed or hacked into, minimize on public internet connections and be wary in what they post on social media accounts.