November 2023 – Computer Science & Security News

Understanding Risks and Safety Measures

In the fast-paced world of digital currencies, there’s an alarming trend making headlines – cryptocurrency heists, or robbery. These cybercrimes, often orchestrated by skilled hackers, have governments and investors on edge. Let’s break down:

What’s happening?
What’s at risk?
How to stay safe in this crypto world?

What’s Worrying Governments?
Governments, especially in Western countries, are sweating over the potential for huge crypto heists funding shady activities and the bankruptcy of individuals and companies. Imagine nuclear weapons programs or money laundering schemes, all funded by stolen cryptocurrencies.

That’s not all, some governments are waiting for the heist of the century – behind doors, many mention up to half a trillion dollars. It’s not a tale. Recently, hackers linked to the supposed North Korean government pulled off a jaw-dropping $100 million heist from a California-based company, even more recently HTX with its Heco Chain had a heist of $115 million (see TikTok and Instagram for more information*). That money was quickly laundered, leaving authorities scrambling.

As this article says: “[Many] discovered the hard way that trading cryptocurrencies such as bitcoin happens in an online Wild West where sheriffs are largely absent.” [1].

The Troubling Trends.

Cryptocurrency heists are on the rise, and quite fast. Think of 2022 as the “Year of Crypto Hacking,” with a staggering $3.8 billion swiped from crypto businesses [2]. And here’s a shocker: most attacks, a whopping 82.1%, targeted decentralized finance (DeFi) platforms [2]. Those North Korean hackers? They’ve made off with over $2 billion in various attacks over the past few years [3].

Who’s in the Center of attention?

Picture this: hackers setting their sights on cryptocurrency exchanges and DeFi platforms. These are like treasure troves for cyber bandits. They’re using sneaky tactics like tricking people (that’s called social engineering – see these TikTok and Instagram accounts*) or finding weaknesses in software, especially software wallets, to get into these systems [4].

What Happens Next?

When these heists occur, it’s chaos for individuals and companies. Sometimes, the thieves vanish with the loot because tracing cryptocurrencies is nearly impossible. Other times, law enforcement manages to reclaim some funds [5]. The FBI’s been busy chasing after North Korea’s Lazarus Group, which has snatched hundreds of millions of dollars in crypto [6].

Keeping Safe in the Crypto Jungle

Now, how do you protect yourself from these sneaky thieves? Strong security measures are key. Imagine having a lock with two keys instead of one – that’s two-factor authentication. It’s like having an extra security guard for your digital wallet. Staying informed about the latest tricks hackers use is also crucial.

Big Fish and Small Fish

Whether you’re a big investor (called crypto whales) or a small one, these heists can seriously sting, in average almost $100,000.[7] But there are ways to safeguard your assets. Crypto whales often use what’s known as multi-key wallets, a super-secure way to store their digital money [8] – generally more complicated, as slower speed in transactions, need a certain technical know-how, and it takes longer to recover your funds [8A]. For everyone else, using secure hardware wallets, along with extra authentication steps, can help keep those digital coins safe.

The Ledger Lockdown

Speaking of secure wallets, let’s talk about Ledger wallets. These are like ultra-safe piggy banks for your digital cash. They use a fancy thing called a Master Seed, which generates lots of keys. Although it’s not exactly the usual multi-key system, it’s close enough to make it super secure [9]. My colleague tested some hardware wallets. Most of them were extremely secure, but Ledger came out in first place.

Here’s my recommendation for a hardware wallet. The reason for it is its multi-versatility among our computers and smartphones (works securely on the major platforms, Windows, MacOS, iOS and Linux systems):

https://shop.ledger.com/pages/ledger-nano-x/?r=56eeff14bf75

ONLY DOWNLOAD Ledger Live from verified and official sources. For the smartphones through their respective stores, Apple and Android or from https://www.ledger.com/ledger-live for computers. NOWHERE else !!! It prevents phishing attempts or malware infections.

In Conclusion

Cryptocurrency heists are like modern-day bank robberies, only way sneakier. But understanding the risks and taking steps to protect yourself can make a world of difference in this fast-evolving crypto world.

Disclaimer:

I have an affiliation with Ledger due to their top-notch security features.

References

[1] https://www.reuters.com/investigates/special-report/bitcoin-exchanges-risks/

[2] https://www.chainalysis.com/blog/2022-biggest-year-ever-for-crypto-hacking /

[3] https://www.trmlabs.com/post/inside-north-koreas-crypto-heists

[4] https://blog.cryptostars.is/how-cryptocurrency-exchanges-get-hacked-369633976322

[5] https://edition.cnn.com/2021/12/12/tech/crypto-exchange-hacks-explainer/index.html

[6] https://www.darkreading.com/threat-intelligence/fbi-warns-of-cryptocurrency-heists-by-north-koreas-lazarus-group

[7] https://usa.kaspersky.com/about/press-releases/2023_kaspersky-survey-finds-one-in-three-users-have-experienced-crypto-theft-average-loss-is-97583

[8] https://linen.app/articles/store-crypto-as-whales-do-the-definitive-guide

[8A] https://blockworks.co/news/what-are-multisig-wallets