Cyber Threats on Exchanges and How to Mitigate Them

Cyber Threats on Exchanges and How to Mitigate Them

Due to the centralized nature of cryptocurrency exchanges where they act as the middlemen for the buyers’ buying and selling of digital assets, they have become the common playground for cybercriminals whose purpose is to make money out of creating crypto-related schemes. They usually hack through the exchange’s network system or through creating their own platforms that are illegitimate and fake. They also leverage on human’s desire for money and wealth by offering them tools and apps that appear to help them with their trades, but actually are malicious. Ignoring these Cyber threats mean losses for crypto investors and exchange users so, being informed is key. Here are some of the most common cyber threats on exchanges and how to mitigate them.

Hacking exchange platforms For those who are not too familiar with internet terms, hacking simply means online stealing or online theft. When an exchange platform is hacked by cybercriminals, its users may lose thousands or even million dollars-worth of funds that the hackers would steal from the platform. We have seen this happen time and time again, and the amounts of stolen funds were no joke.

Additionally, hackers can also steal application programming interface (API) keys from these platforms and use them to withdraw the user’s funds from his account or to perform cybercriminal acts like a fraud, for instance.

Data breach Ever noticed whenever you download an application on your computer or phone, you will be asked to allow it to have access to your data? Third-party applications work that way, including those apps for cryptocurrencies. While it’s true that those apps can help you in monitoring crypto prices and in calculating your potential profits, they also pose a threat to your data, especially because you have to share your data with the developers. Your user data hold valuable information for the attackers since they can use it to identify their potential victims.

Injecting codes in registration forms In fairness to exchanges, they try their best to be as strict as possible with their registration forms. However, filling up these registration forms is exactly the reason how the attackers can penetrate the user information. They can inject codes into these online registration forms and send the user’s information to a command-and-control server (C&C). If that happens, your information can be sold in the black market or even worse is that you may even be a victim of identity theft.

How to mitigate these threats Mitigating these threats is really simple, don’t trade in a centralized exchange. With the birth of Virie Market, you now have a chance to trade and invest in a platform that has eliminated all these threats. It’s a decentralized virtual marketplace not only for cryptocurrencies, but also for goods, services, and all types of currencies. In fact, for everything of value.

Combining Proof of Stake (PoS) with Proof of Work (Pow) makes it impossible for an attacker to hack the platform as he would need 51% of PoS and 51% of PoW to be able to do so.

There’s also no danger of data breach nor being injected of codes in the registration forms because in the first place, you will not be asked for any data, nor to sign a registration form. All you have to do is to download the application, and that’s it. None of your information will be compromised at all. Virie Market is your platform for safe trading and transactions. But don’t just take my word for it. Read it’s Whitepaper and download the application here to see for yourself how it works.