The popularity and surge in prices in Tokens means that virtual currencies often become a target for hackers that want to take advantage of these valuable assets. "The economics of hacking suggests that attackers will continue to gravitate towards digital currencies as they increase in value and become more prevalent in our daily lives". Tracking the work of hackers is often challenging since their footprints can be eliminated digitally. When a cryptocurrency account is hacked, investors do not have any recourse legally since the virtual coins are still unregulated by a government entity or central bank. Here are tips for protecting a cryptocurrency investment.
Never reuse passwords across your accounts, especially since online services are prime targets for hackers. Assume that one or all of them will inevitably have a data breach. "While a token is an innovative technology that is evolving quickly, the quickest and easiest ways to secure your wallet is with tried-and-true security tactics. "Limit your exposure by having a unique, strong password for each, with two-factor authentication and password rotation enabled where possible. Using a trusted password manager can help to automate this process and take the guesswork away.
Many people with a token wallet use a mobile app to manage it. As tokens soar in price, malicious hackers are motivated to target investors with mobile phishing campaigns to steal your login credentials. These social engineering attacks can come from anywhere on a mobile device, including texts, SMS, social media, third-party messaging platforms or email. "Beyond phishing, there are also malicious mobile apps that have the hidden ability to log your keystrokes or watch the activity on your screen". Many people install antivirus software on their computers, and they are starting to realize they should do the same with their smartphones and tablets. Considering the amount of data we trust to those devices, they are the most important to secure.
Investments in tokens continue to rise in popularity with people who do not have a technical background but are seeking to diversify their portfolio. None of the digital assets are managed by an authoritative organization or central bank, so the responsibility to protect your money falls, "almost completely on the user," says Brandon Hoffman, chief information security officer at Netenrich, a San Jose, California-based provider of IT, cloud and cybersecurity operations and services. The likelihood of recovering those losses is minuscule. The three most important components to learn about are secret key protection, recovery seed protection and cryptominer malware protection.
The secret key is used to validate that the person sending or receiving the digital coins is the owner of the wallet being used. This secret or private key should never be shared. "The safest way to store your private key is by using cold storage". "Cold storage essentially means printing out your key and removing all digital traces of it." The semifail safe method of recovering your private key is to use a seed, a series of randomly generated words that a user can leverage. "This seed phrase should only be written down or printed on paper and stored somewhere safe", never on a Post-It!. "With how easily attackers can get access to end-user machines and other digital storage applications, keeping this phrase somewhere digital is very risky."
Source: US News.