Even though the cryptocurrency industry has only achieved broader attention in the past decade, there is already a narrative that is so common as to be almost pedantic. An individual, or perhaps an entire digital currency exchange, is subjected to malicious hacks.
What are the most common types of cryptocurrency hacks?
You’d think that cryptocurrencies – in general, digital cash systems that harness the power of mathematical calculations to unlock new capabilities in exchange for being used as a medium of exchange – would be impervious to hacking. You would be wrong. The crypto-world is a particularly murky one where the platforms can take anywhere from a few hours to several days to identify and notify its users of any sort of security breach. The nation of Kenya recently declared that all cryptocurrencies have a 1 in 10,000,000 chance of being hacked and do not meet minimum anti-money laundering and know-your-customer standards.
What should you do if your account gets hacked?
Should you just change your password? Should you notify the crypto exchange? Should you alert the police? Or should you just suck it up, put your trust in these nascent, unregulated and unsupervised systems, and learn to live with the constant loss of value? It's a tough question, but it's also a question that cryptocurrency startups and exchanges are struggling to answer. Let's recap the steps that you should consider, and that cryptocurrency services can help you take to avoid getting hacked. Step 1: Look at your environment. Identify which wallets, exchanges and websites you use, and search those platforms. Have you created unique passwords? If your passwords aren't long enough or have weak character limits, have you changed them recently?
How to avoid getting hacked
Security firms, including Cisco, F5 Networks, and SecurityScorecard, have warned customers that the cryptocurrency market is, by its very nature, vulnerable. Hackers target anyone who holds large amounts of cryptocurrencies in their accounts, but the vast majority of users—who use an average of between $500 and $10,000 worth of cryptocurrency in their online accounts—have no way of knowing if their accounts have been compromised. It is widely believed, though, that thieves use compromised credentials, such as email addresses and usernames, in the hopes that you will accept money from those who have hacked your source. Related: Bitcoin Is Not a Fraud: Here's Why Bitcoin Is the Future of Money Some of the exchanges that have experienced theft recently have been very large: Mt.
At the moment, for most people, both Bitcoin and Ethereum are well-suited to what a person wants to achieve in the cryptocurrency industry. However, as time progresses, more people will start getting into the whole blockchain concept. At the moment, some of the best Ethereum exchanges have had hacking attempts. Ethereum Classic suffered a bug in which a number of ether was mistakenly sent to a hacker, leading to $20 million in lost funds. Ethereum App Coins also had a $33 million loss in funds, due to a glitch. The most infamous instance was when the Darkcoin exchange was hacked for $55 million. These attacks are certainly worthy of mention. But more important to address, is how much you can do to guard yourself against hacking attempts.