As cryptocurrency continues to gain traction, it becomes a bigger target for hackers and cybercriminals looking to snag some funds. That means smarter security is a must.

Cryptocurrency cybersecurity risks

Cryptocurrency transfers occur on a decentralized network. Transferred funds can’t be reversed or canceled — they can only be refunded by the receiver.

Cryptocurrency uses a blockchain that makes it impossible to edit any data within the network. A blockchain is a shared database that stores blocks of data linked by cryptography, meaning the information is coded or concealed so only the intended recipient can read it. Therefore, if a hacker accesses someone’s cryptocurrency account and transfers funds, it’s likely the victim won’t be able to regain the money.

Phishing, hacking, and wallet theft are some of the top cybersecurity risks associated with cryptocurrency.

Phishing

A phishing email tricks users into leaking their private keys so hackers can steal their crypto coins. The phishing email prompts them to download malware that infects their computer. Then, the hacker can secretly monitor or seize control of the device’s activity – and your crypo wallet.

Crypto hacking

During a crypto hack, a cybercriminal gains unauthorized access to and steals your cryptocurrency. Crypto hacking often involves sophisticated software tools or rudimentary phishing schemes. These are designed to compromise transactions or lure users to phony coin exchanges.

Wallet theft

Wallets allow cryptocurrency users to manage, access, and transfer their funds. Hackers can easily steal from and access improperly secured cryptocurrency wallets.

Fortunately, you can take a few steps to secure your cryptocurrency wallet:

  • Use a cold wallet. A cold wallet encrypts and stores your private key. It can’t get hacked since it isn’t connected to the internet.
  • Use multifactor authentication. After entering your password, two-step authentication requires an additional measure (such as a text or email confirmation) in order to access your account.
  • Back up your wallet data. A backup wallet stores your data in a safe location. If you lose your computer or accidentally delete something, you can still access your wallet data.
See also  How Secure is Cryptocurrency?

Choose Agio for cybersecurity services

Whether you’re working with company funds or confidential data (or both), strong cybersecurity is nonnegotiable. At Agio, we help healthcare and financial firms implement rigid cyber safety measures. From system management and monitoring to disaster recovery, our team is here for you. Learn more about our cybersecurity services by contacting us today.