Cryptocurrency Security Fears Grow as Hackers Target Firms
A recent high-profile hacking incident has highlighted the security risks facing cryptocurrency firms, with the world’s second-largest cryptocurrency exchange, Bybit, allegedly tricked out of $1.5 billion worth of coins by hackers believed to be working for North Korea. According to a report from the BBC, Bybit had been using Safe, a free digital storage software popular with individuals who want to store cryptocurrency on their own devices, as part of their business operations.
In the aftermath of the theft, Bybit’s chief executive acknowledged that the company "should have upgraded and moved away from Safe" earlier. This incident has raised concerns about the security measures in place at cryptocurrency firms, with Prof Mark Button, a researcher in cybercrime, stating that these firms often struggle to keep up with the accounting and security challenges of managing large amounts of money. "For me, it illustrates that if we are going to be serious about cryptocurrencies in the future… there needs to be some kind of regulation," Button said.
The lack of regulation in the cryptocurrency industry has been highlighted as a major concern, with many firms failing to implement adequate security measures to protect against hacking incidents. The BBC reports that higher industry standards might have prevented some of these incidents, including a case where a man accidentally sent $5 million worth of cryptocurrency to a scammer. In an interview with the BBC, the victim, who wished to remain anonymous, revealed that he had been tricked into sending the coins to a fake website.
Mykhailo Tiutin, chief technology officer at AMLBot, a company that analyses the risk of cryptocurrency transactions, warned that while cryptocurrency is safe enough for the average person to use, they should be careful about which products and services they choose. "You have to do your own research," he told the BBC. "The successes and the losses are ultimately at your own risk." Tiutin’s company provides a service that runs checks similar to those supported by banks, verifying details for a transfer, such as the account holder’s name, sort code, and account number.
The need for greater regulation and security measures in the cryptocurrency industry has been highlighted by experts, with Button stating that if firms are sent coins they don’t handle, there needs to be laws stating what they need to do in such cases. The BBC reports that industry standards might have prevented some of these incidents, including the case where Bybit was tricked out of $1.5 billion worth of coins.
The cryptocurrency industry has grown rapidly in recent years, but the lack of regulation and security measures has raised concerns among experts. As the industry continues to evolve, it is clear that firms will need to implement more robust security measures to protect against hacking incidents. The BBC’s report highlights the need for greater regulation and industry standards to protect consumers and prevent incidents such as the one involving Bybit.
According to the BBC, experts and industry insiders are calling for greater regulation and security measures to prevent such incidents in the future. This will be an ongoing story and BBC will provide updates.
