Crypto Exchange Security – How Secured Are You?

How much do you trust the sites you give out personal information online? Does it have the same trust when you fill out information whenever you open a bank account? Where and how do you place your trust?

People may trust differently depending on what they experience and what they hear. Some doubts the government and would rather trust unknown and unverified sources. Some would trust a shady writer than a legitimate media outlet. This is the trend nowadays in the era of social network and information. However none conformity comes with a risk, these people who would trust new systems and sources; have they ever considered their own safety and the facts that come with it?

With the current trend and boom of technology. The cryptocurrency revolutionized the digital world by becoming an alternative for e-payments and to no surprise trade, and investment. But at what cost?
People have to sign up to Crypto Exchanges where they have to provide personal information and proof of personal information such as ID cards and selfies 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?

Lately it has been known that there was a cryptocurrency platform which leaked confidential information of 25000 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 say 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 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 of help the instance a database gets exposed where your sensitive information is stored will be exposed by cybercriminals.

 

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