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Cryptocurrency Security Issues Continue to Hit Exchanges

June 28, 2018

Cryptocurrency security issues are going nowhere as long as different coins continue to grow in value and thrive. Unfortunately for the world of cryptocurrency, the more success it has had, the bigger the target it has become for cybercriminals. Two South Korean Exchanges discovered that this month.

Cryptocurrency Security Issues Continue

South Korean Cryptocurrency security issues

Cryptocurrency security issues have plagued two South Korean cryptocurrency exchanges this month. Both Bithumb and Coinrail have had large amounts of bitcoins stolen from them.

Bithumb had $31 million worth of its XRP cryptocurrency token stolen. It’s not yet sure exactly how hackers were able to do so or how many people have been affected, but there is speculation phishing attacks might have been behind the incident. Bithumb days before the incident had actually notified customers of some security upgrades because of a rise in detected attacks. It said:

“Recently, the number of unauthorized access attempts has increased. As such, an urgent server checkup was conducted to strengthen the security of all systems.”

The company clearly takes cyber security seriously and is reported to have spent $9 million on security measures annually, but it has not been enough to keep hackers out.

Coinrail had similar issues, with $40 million worth of cryptocurrencies stolen from that South Korean exchange as well.

Tackling cryptocurrency issues

Cryptocurrency security issues are only going to continue, so defenses need to adapt and improve. Cryptocurrency could potentially look to quantum encryption solutions as a way of creating safer and more secure solutions.

At the same time, the standard ways of hacking and compromising businesses and accounts need to be defended against. Exchanges for cryptocurrency need to be sure they are protected against phishing and social engineering attacks. It would be a real shame to get caught out with old and known tactics.

Organizations who use strong identity management solutions, the likes we have here at Global Data Sentinel, for access to important files can go a long way to protecting their cryptocurrencies. Biometric log-on for example makes phishing and social engineering based attacks far harder.