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Digital Wallets Are Not Safe! 3 Ways to Enhance Cryptocurrency Security

Published on November 23, 2021



Cryptocurrency may be the next big thing, but it is not as secure as you think. According to Finaria.it, crypto criminals stole $1.9B in 2020. That’s lower than the $4.5B stolen in 2019.  Investing in the blockchain industry demands strong cryptocurrency security.

You may have heard about cryptocurrency or the blockchain industry. You may already be investing in it. But you are dealing with lots of money, and hackers are definitely into that. It’s not long until they create new ways to attack an unsuspecting victim. Let’s discuss ways on how to protect your investment from cyber criminals with cryptocurrency security.  

 

Top 3 Cryptocurrency Security Tips

Cryptocurrency is a system that allows you to make payments online, using virtual “tokens.” Cryptocurrency is kept in a digital wallet. This “wallet” is basically an account on a website. It can also be on a computer or an external hard drive. There are just three simple ways you can do to secure your digital wallet:  

  1. Secure your computer so hackers can’t find their way into your system.  

    One of the ways to secure your computer is through threat hunting techniques. Cyber threats may be hiding in your devices, undetected by the security systems you may already use today. An attacker may hide in your network for months collecting your data.  

    One type of attack is called ransomware, where hackers put a virus on a person’s computer and lock its files. To retrieve the files, a user has to send money to the hackers. Cyber threat hunting digs deep into your system to search for suspicious activities such as ransomware.  

    Most individuals and companies find it difficult to remove threats once they’re already inside the network and computers. That is why threat hunting is an important defense strategy.  There are several services that offer threat hunting as a feature. Some are really smart and learn from their environment. This way, they can stop threats in their tracks. 

    There are also several detect and protect tools that you can use. These include Email security, firewalls, anti-malware software, and many more. If you are not familiar with these tools, you can seek the help of an IT professional or cybersecurity specialists 

    Lastly, regularly updating your applications and the operating system is one of the best practices when protecting yourself from hackers. Updates are like flu shots for your computer. They make sure that your computer is healthy. This is important since hackers keep coming up with new ways to attack computers. When you regularly update your computer, you are on top of the changing cyber threats. If you do not have time to manually update your computer every time, enable automatic updates on your computer.  

    Cryptocurrency Facts

  2. Take your passwords seriously.  

    Use a password manager to store your passwords from your social media, banking, and other websites and locations. A password manager is a service where you can store these passwords.

    You should also use Multifactor Authentication (MFA). Think of it as a deadbolt lock for your accounts. MFA is a security technology that uses more than one way to log into your Email or social media. Aside from a password, you will also be asked to prove that you are the user of the account. They may send you a code to your phone or ask you a few questions only you know the answers to. More advanced methods of MFA may ask for your thumbprint or a retina scan.

    The goal of MFA is to add an extra layer of defense. This makes it more difficult for hackers to target your computer and your information. If they crack your password, the hacker will still have to go through another level of cryptocurrency security.

    Lastly, you will need to periodically change your master password. Experts recommend changing your password every 1-3 months. Also, consider keeping your password in a physical safe or a vault. This way, you will not need to store it on your computer where they can be easily accessed by hackers.

  3. Keep an eye out on social engineering tactics by hackers.

    Sometimes, hackers don’t even have to attack your computer to get what they want. They can manipulate you into willingly giving them your information. This is called social engineering or phishing.

    Social engineers can fool you in many ways. They might call you on your phone and pretend to be a fellow employee or someone with authority. Sometimes, they can be people in your office. They may be someone who pretends to have forgotten their access card and ask you to hold the door for them. Sometimes, they connect with you through social media or on your Email.

    One social engineering method that relates to cryptocurrency is SIM swapping. This is when an attacker pretends to be you and asks your network to change SIM card numbers. They will convince your telco provider to switch your phone number to a SIM card in their possession. If successful, they can then have access to your cryptocurrency accounts. All they need is to have a verification code sent to your “new” phone number.   

    To protect yourself from SIM swapping, ask your telco provider to put a PIN to your account. This way, whenever someone pretends to be you, they will be asked for your PIN. You can also use apps like Google authenticator, which gives another level of cryptocurrency security. Your accounts can send verification to these apps instead of sending text messages. Hackers will not be able to spoof you as they will need to have access to your actual phone.

    One type of cryptocurrency, bitcoin, is a common target of cyber hackers. According to dataversity.net, 33% of bitcoin websites have been hacked. Do you think cryptocurrency is still a good industry to invest in? How do you keep your investments safe?

     

Need advice on how to keep your cryptocurrency investments safe from hackers? Talk to us by completing the form on this page. You may also call us at 800-314-5835 or Email us at [email protected]. Take action today!  

Be in the loop on the latest cybersecurity news. Check our current events page here.

 

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