At the time of any new technological launch, we can see the experts and a large portion of the population engaged in checking all its positive and negative aspects. There is also another category that is found engaged in finding the shell whole of that technology.
Some thieves, robbers, and hackers also come under this portion, who neutralizes the security aspects and uses it for their benefit. Many times computer hackers have executed very large incidents of hacking. The cryptocurrency was considered to be one of the safest means of transaction and investment. But now even this route is no longer untouched by hackers.
Bitcoins are being used worldwide as cryptocurrency. Cryptojacking is a technique that is used by hackers to steal millions of dollars of this electronic currency. A big group of hackers is hidden behind all these activities. They use the power of thousands of computers to make millions in bitcoins illegally.
According to a report, only 10 hacking campaigns were responsible for obtaining 58% of cryptocurrency illegally. This information is shocking for the authorities and investors. Where we can say that hackers are very sharp-minded but this is not the only reason. The credit of loss due to Cryptojacking goes to the vulnerabilities of cryptocurrency exchange. Let us have a look at those vulnerabilities:
- Susceptibility: Cryptocurrency exchanges assures for safe use and toughened security measures. Still, we can see what is happening. This is just because of the failure of a phishing attack by hackers. Under a week-long phishing attack, 5 million U.S dollars in bitcoins were stolen by the hackers. The email and skype were used for this fraud attempt and luckily, they succeeded in it. One file was obtained which was containing the malicious script attachment. A compromised machine and malicious file were enough to disclose the susceptibility of cryptocurrency exchanges.
- No hot wallet protection: Whoever is involved in cryptocurrency investment, is aware of private key attacks. Bitfinex was the year 2016 with the loss of 65 million U.S dollars, and parity in 2017, with a loss of 30 million U.S dollars, are the examples of this attack. Few people who are not aware of this might be thinking about what is the private key. The private key is a code that is allowed to the users for the secured login of their hot wallets, which is an online cryptocurrency wallet. The smart hackers always make efforts to reach these private keys, and their success causes huge losses in cryptocurrency just as we have seen in 2016 and 2017. Therefore, serious steps for hot wallet protection are required.
- Employee login credentials: Compromised employee’s login details were used for the attack. Three attacks in the same year (2017) were registered with a major loss. A compromise is always not required to act this fraud effort. Employees’ login credentials are enough to give an open hacking invitation to hackers. Employees don’t do their jobs strictly and use passwords with weak strength. This is why attackers get an easy platform to attack effortlessly. Some of the cases are reported where data was available on the employee’s personal computer. This act is against rules. By attacking the personal computers of the employees, hackers can easily reach their desired destination. Attacking on a personal computer becomes easier than a protected official computer. The authorities are required to ensure non-personalized usage and storage of data by the employees. They need to guide them for the high strength login password setup.
- Software vulnerability: This is again a weak signal that indicates the increased possibilities of easy hacker attack. As we all know that banks are working for years and still, they are engaged in adopting new security methods to ensure tough financial security for their customers. Banks are still not that much secured in this regard. The Cryptocurrency is at its initial stage and the software development will take a little longer to get developed as per requirement. We know it well that hackers will then also find out another way to attack but to promote cryptocurrency the authorities will have to raise their effort to avoid software vulnerabilities.
- Transaction Malleability: The cryptocurrency transaction is popular due to its immutable records. But one thing is missed by everyone is signature, which is important for each transaction. Before the closure of the transaction changes in the signature can be done so easily. These changed signatures are enough to result in a big loss by hackers.
The above-mentioned vulnerabilities at different levels show that this non-physical investment and transaction platform need more developments and toughened security system. Cryptocurrency exchange, blockchain, employees, and software are the key point where efforts are needed. A tight security system will strengthen the exchanges by saving them further losses. As we are living in a modern age, we can expect the implements very soon.