Check Point Software Technologies Ltd., a global provider of cyber security solutions, warns users of the persistent dangers of cryptocurrencies and offers recommendations to keep wallets secure on Bitcoin Day 2022.
While the concept of Bitcoin and Blockchain first appeared in 2008, much has changed since then, including the introduction of Ethereum, Non-Fungible Tokens (NFTs), the Metaverse, and the Internet of Value.
Despite these advancements, users face significant risks. Indeed, crypto scammers stole a record $14 billion just last year.
So, what are these dangers?
Why are crypto scammers so effective?
And what can users do to protect themselves?
Cryptocurrency is rapidly expanding – in only fifteen years, the crypto asset market has grown to more than $2 trillion. While innovation is wonderful, the rapid pace of development frequently leaves gaps for breaches. Check Point Research (CPR) has discovered serious security flaws in leading Web3 platforms such as OpenSea, Rarible, and Everscale over the last year.
Rapid innovation means that new projects are being developed on a daily basis. The issue is that there isn’t enough emphasis on securing what’s being built. The greater danger here is that new frontiers, such as the Metaverse, will be built on an insecure foundation. Indeed, security and privacy concerns are the primary impediments to the Metaverse’s development.
The world already lacks 2.72 million cybersecurity professionals, let alone those who specialize in Web3, according to the 2021 (ISC)2 Cybersecurity Workforce Study. According to the same study, the global cybersecurity workforce must grow by 65 percent in order to effectively defend organizations’ critical assets. If we include cryptocurrencies and the Metaverse, that percentage is likely to be much higher.
Oded Vanunu, Head of Products Vulnerability at Check Point Software commented: “Bitcoin Day is a good reminder for us to look back and review the technological milestones the blockchain has achieved. Today with the big tech companies investing in the Metaverse, the fine-tuning of blockchain technologies and active innovations are creating the new internet – the internet of value. We now stand at the dawn of a new era, the metaverse era, and it will be fascinating to see what is to come and how we will secure its future.”
He continued: “In the meantime, users should remain aware of crypto wallet risks and remain vigilant when it comes to suspicious activity that may lead to theft. Threat actors will continue to expand their efforts in order to hijack crypto wallets while exploiting system vulnerabilities as we’ve already seen in 2022.”
Transactions on the blockchain are irreversible. Unlike a bank, blockchain does not allow you to block a stolen card or dispute a transaction. If your wallet’s keys are stolen, your crypto funds can become easy prey for cybercriminals, so user safety should be a top priority at all times. To prevent key theft and as general safety precautions, CPR suggests:
