Crypto Exchange Security – How Secure Are You?

How much do you trust the online sites you give your personal information to? Do you have the same level of trust and confidence when you provide the same information when you open a bank account? Where and how do you place your trust?

Trust can be varying depending on each individual’s experience. Some doubt their own government and would rather trust unknown and unverified sources. Some trust rogue writers over legitimate media outlets. In the information age, with the boom of technology this is an ever increasing trend. Without the security of regulation, there can be a risk with new systems and sources. Do you consider your own safety before you happily download a new app or other technology? The cryptocurrency has revolutionized the digital world by becoming an alternative for e-payments, trade and investment. But at what cost?

To sign up to Crypto Exchanges you are required to provide personal information and identifacation to prove your identity, including a selfie as part of the verification process. Let’s give the benefit of the doubt that it is not a phishing attack. But how sure are you that your data is protected the same way it was meant to be protected?

Recently, it was revealed that a cryptocurrency platform leaked confidential information of 25,000 users that was publicly accessible to anyone with an internet connection. The reason for this was an unsecured MongoDB database. Bezop which is the affected platform claims that it was a cyberattack through DDOS which led to the exposure of user data. However the security firm Kromtech Securities have a different opinion about the incident.

Regardless of what caused the leak; an exposed MongoDB is good news for cybercriminals, because they can control and takeover these unprotected databases for ransom. This security flaw can have a critical impact on the affected users as their personal information is exposed which can be used for spear-phishing attacks, identity theft, and to directly drain the affected accounts of its stored cryptocurrency wallet.

Let’s be clear on some concepts on security. With regards to the movement of cryptocurrency through blockchain technology, the identity of the account is protected within the exchange, however the security of the account relies on how the exchange protects the accounts through security measures. Changing your password frequently may help protect your account, but it won’t be much help in the instance a database gets exposed disclosing your stored sensitive information cybercriminals.

 

About the author

Leave a Reply

Categories