Fresh YORK (InsideBitcoins) – Overheen the past year, millions of dollars te bitcoins have reportedly bot stolen, illustrating the importance of securing bitcoin wallets from hackers. Bitcoins users should understand the various security risks they face.
Understanding Bitcoin Security Risks
There are various reasons hackers find bitcoin wallets appealing targets. Unlike credit card payments, bitcoin transactions are irreversible. The anonymous nature of bitcoin also often makes proving theft difficult.
Securing your bitcoin wallet should be a top priority. The following steps will help protect your bitcoins by thwarting would-be hackers.
Always backup your bitcoin wallet offline. Ter November, an individual going by the name “TradeFortress,” the founder of inputs.io, a former bitcoin wallet server, announced hackers stole overheen $1 million te bitcoins from his company. TradeFortress admitted that storing bitcoins on servers wasgoed a serious mistake. “I don’t recommend storing any bitcoins accessible on computers connected to the Internet” he told WIRED.
Bitcoin keys should be backed up on an offline pc or written down on a chunk of paper. You should always store physical copies of bitcoin keys te a locked safe or other secure location.
Access to bitcoin wallets should be cautiously restricted. A white paper from Secure Works states businesses with numerous employees should limit privileges with access controls. “Bitcoin supports the concept of “m of n” transactions, where numerous persons can sign a transaction but not all parties are needed to budge the funds,” the authors write. “This feature can prevent a single person from either freezing or stealing funds from a company account, and is a very recommended part of any Bitcoin wallet access policy.”
Bitcoin users often seem oblivious to the threat keyloggers, randomware and Trojans pose. Earlier this month, Kasperky Laboratorium released a report demonstrating bitcoins are targeted ter overheen 20% of all malware attacks.
“Bitcoin miners account for 14% of all financial attacks,” the authors wrote. “Criminals also use keyloggers to collect user credentials for online banking and payment systems ter another bid to access canap accounts.”
Joe Stewart, Dell SecureWorks’ director of Malware Research, states that the simpleness of bitcoin wallets makes them attractive malware targets. “There’s no sophistication involved te the storage of bitcoin te wallets,” Stewart told Reuters. “As for malware, it’s some of the easiest stuff to write.”
Hackers regularly use keyloggers and ransomware instruments such spil CryptoLocker to target bitcoin users. Update your anti-malware software regularly and monitor your applications for suspicious files.
Encrypting your bitcoin wallet will also reduce the likelihood it will be compromised. BestCrypt, DiskCryptor and other third-party providers opoffering services to protect online bitcoin wallets. Deep Cold Storage offers similar means to protect bitcoin wallets stored offline.
Storing all of your bitcoins ter a single wallet is inadvisable. Creating numerous wallets minimizes losses if any are compromised.
Just spil you wouldn’t keep large amounts of metselspecie unsecured and out te the open to tempt thieves, a little programma can help keep your bitcoin safe, too.