Hackers Steal $882M from Crypto Exchanges, New Report Reveals
A new report indicates that hacks are set to rise due to a number of factors.
Hacking On Crypto Exchanges Set To Soar
A report by a leading cybersecurity firm has revealed that cryptocurrency trading platforms lost a staggering $882 million in hacking over the last two years. The report by Group-IB states that exchanges will continue to be the target of hackers due to massive daily capital flows. The group projected that hacking on crypto exchanges will rise in the coming year.
The report stated that next year, the industry should brace itself for more advanced and aggressive hacking groups. Normally, these groups target banks. The report added that apart from trading platforms, ICOs will also be a major target for hackers. In the period under review, it emerged that more than 10% of funds acquired through ICOs were lost to the hands of hackers. Notably, the ICO sector is known to have a number of scams.
Data from two months ago shows that ICO scams contributed to a loss of $100 million. Due to the popularity of ICOs, scams in the sector are expected to continue.
Group-IB added that any project that has the ability to bring more investors on board is susceptible to attacks. The group gave a number of recommendations in order to help projects to keep hackers at bay. For investors, the group recommends vigilance and thorough research and due diligence on the targeted firm before pumping in money. As 2018 nears its end, the total lost in ICO scams is expected to rise.
This year, CoinCheck from Japan suffered the most from of hacking. The exchange lost more than $500 million. In the wake of the hack, FSA unveiled tough regulations in the sector in order to protect investors.
Attackers gained access to CoinCheck systems through the platforms’ private keys that opened the door to the hot wallet. An online wallet is efficient but stands at a high risk of being attacked. With many people taking up online wallets, the number of attacks is only expected to be on the rise. Under the traditional banking sector, we have thieves conducting heists to steal money. In the era of cryptocurrencies, hackers are now going after ICOs and exchanges from the comfort of their homes.