Cybersecurity Experts Highlight Need for Enhanced Crypto Security Measures Amid Rising Hacks
Summary:
As cybersecurity breaches continue to plague the cryptocurrency industry, experts weigh in on potential security improvements. By September 2023, nearly $1 billion was lost due to crypto scams and hacks. The fourth quarter saw further incidents, like the Poloniex exploit and the HECO Chain bridge hack, further highlighting existing security gaps. Cybersecurity professionals argue for the necessity of crypto-native multifactor authentication, regular security checks, and comprehensive security strategies. Experts highlight that these ongoing breaches hinder crypto adoption, undermining public trust in digital assets.
In the world of cybersecurity, experts are suggesting ways for digital asset businesses and the overall crypto industry to upgrade their cryptographic defenses as corporate vulnerabilities to hacking and exploitation persist. By September 2023, close to $1 billion was lost due to cyberattacks, fraud, and other scams related to cryptocurrency. Despite this, the last quarter of 2023 has seen major upsets in the crypto sphere, including the Poloniex exploit – resulting in losses surpassing $100 million in digital assets – and the HECO Chain bridge hack, which lost over $80 million.
The toll of security breaches and the value lost in each attack make it clear that there are shortcomings in the security protocols for digital assets within the crypto industry. In light of this, professionals from Cointelegraph communicated with cybersecurity specialists to discuss potential measures for strengthening security and averting future incidents.
Ronghui Gu, a co-founder of the CertiK blockchain security firm, communicated to Cointelegraph that continuous incidents caused by SIM swaps and multisig failures are "inexcusable." Gu believes that companies need to introduce crypto-native multi-factor authentication and perform regular security checks.
Christian Seifert, an analyst at Forta Network and former security lead at Microsoft, also emphasizes that security should be considered crucial. He said that users must insist on secure procedures, and regulatory authorities must intervene if those security demands are ignored. Additionally, Seifert highlights the importance of combining strong security practices with continuous monitoring and threat prevention solutions.
According to analyst Jerry Peng from Web3 analytics firm 0xScope, a deeper comprehension of potential security threats is critical. This awareness will enable companies and individuals to identify recurring patterns and links displayed by addresses previously involved in attacks. "The use of crypto data analytics services can aid in preventing future hacks," explained Peng.
Data from CertiK indicates that, by Nov. 28, 2023, hacks in 2023 accounted for a loss of $1.5 billion in the crypto industry, according to Gu. He also opined that these ongoing incidents could hinder cryptocurrency adoption by diminishing public faith in the security and stability of digital assets.
Seifert echoed these views, indicating that while early adopters of technology might accept certain risks, this would not be acceptable to the wider user base that the crypto industry is trying to attract. Peng also voiced a similar perspective, stating that the frequency of hacks could deter previously interested individuals from exploring the Web3 space.
Published At
11/29/2023 9:59:58 AM
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