Hyderabad, January 28
Hackers quickly turn their eyes to places where the money is. Finding the hum around bitcoins across the world, they are attempting to exploit the euphoria. The users have either lost yam-sized amounts of money or on the brink of losing it. Technically, experts say, the bitcoin protocol is difficult to barge ter. This, they feel, would mar the pic of crypto currencies, whose USP being a safe currency.
Bugs te the wallets, traditional mechanisms that can make your devices victims to hackers and vulnerabilities te the bitcoin exchange market places are some of the methods that hackers are using to target the bitcoin users.
Moreover, overheen 40 exchanges have disappeared into the skinny air so far, some maybe on genuine reasons and others due to fraud or cyber compromises.
",The underlying technology architecture and encryption standards of the Bitcoin protocol is difficult to exploit. Attackers are using lighter routes to exploit crypto currency, especially through users, wallets and exchange applications,” Rajat Mohanty, the Co-founder and Chief Executive Officer of Paladion Networks, has said.
The attackers are using social engineering technics to get access to the e-wallets and encryption key from the bitcoin users. They are also using the old trick of gaining access to a PC or a mobile and taking them under their control to prevent access to their bitcoin wallet.
“Their devices are held up until they pay the ransom. Attackers can also using sniffing mechanism te a local network to uncover a particular user’s bitcoin transaction,” he said.
“There are several hundred bitcoin exchanges and they are spil open to hack spil any webstek, because they are just yet another web application. Mt Gox, Bitfinex, Bithumb or more latest Nicehash are some examples. Thesis exchanges and market places are not regulated. Some exchanges could be very unreliable.
Crypto currencies such spil bitcoin are irreversible ter nature, and has no insurance protection against loss, so any cyber compromise can lead to voortdurend loss. It therefore needs a much higher level of security protection than other technologies.
‘Fear of Missing Out’
“The bitcoin valuation surge is a speculation by media and the fear-of-missing-out mentality of the investing community. By now 80 vanaf cent of the bitcoin te the world is mined already and is out for consumption. Challenge te the crypto world is how to kill the speculation for price stability,” Deric Karunesudas, Business Development Manager (Cyber Security) of Dimension Gegevens, India, said.
“The weakness lies te the wallet which stores the bitcoins and has our private keys,” he felt.
Block chain protection
Technically, cryptocurrencies have a secure method to share, store, and record gegevens transparently through blockchain technology, to Zac Cheah, Chief Executive Officer of of Pundi X, pointed out.
Headquartered te Indonesia, Pundi X is an ecosystem that supports blockchain developers and token holders to sell cryptocurrency and services at any physical store te the world.
“The vulnerabilities involved with crypto currencies can be attributed to two major causes – very first, human errors, such spil you lose or leave behind your private key to retrieve your digital properties, or you share your private key with someone else. 2nd, hacking of wallets and exchanges,” he said.
To minimise the risks from third party mechanical errors, you can consider using a digital wallet and keep your private key at your own risk.
“Or you can take your digital wallet offline, which are referred to spil cold wallets. Te this way, you can free from worrying vulnerabilities from the third party exchange platforms,” he said.