Don’t Compromise on Security for Convenience
August 10, 2016 | Identity Thefts, IT Security, Hacking, Bitcoin, Passwords Keys, Cyber Attacks, Cyber Frauds
Recent hacking at the Bitfinex Exchange raise questions over how we manage our vital information
Despite companies spending billions of dollars on cybersecurity, the number of cyberattacks jumped sharply this year. Cyber-frauds such as identity thefts continued to inflict heavy losses.
In Britain alone, computer hacking affected 530,000 devices in the first three months of this year, shows a data provided by the Office of National Statistics.
Businesses and banks suffered badly as hackers and organized cybercriminals exploited IT security gaps.
Recent hacking incident at Bitfinex, a Hong Kong based Bitcoin exchange, once again brought to the fore how we manage our highly classified information.
The Exchange suffered heavy losses as hackers were able to breach its security, stealing 119,756 bitcoins from customer accounts. Not only that, bitcoin’s exchange value vis-à-vis major currencies nosedived as the incident made investors suspicious about the broader bitcoin economy.
This was not the first incident though. FT Research shows that four bitcoin exchanges, including Bitfinex, suffered security breaches last year that drained customers’ bitcoin accounts. However, one online data compiled by bitcoin community shows that bitcoin exchanges got hacked up to 60 times ever since the new digital currency started trading in exchanges.
While bitcoin exchanges claim having assiduous IT risk-control management in place as a part of the broader security measures, hacking incidents, worryingly, might keep surfacing time and again. This is because; bitcoin users for the sake of convenience are compromising on security. Password Keys, a complex series of numbers that provide access to bitcoin accounts are often stored in a much unsecured way, often in hard-disk drives or internet-enabled devices.
The situation is akin to how most businesses store highly sensitive data. Absence of proper identity and access control management solutions such as Privileged Identity Management/ Privileged Access Management leads to identity thefts and other forms of cyber-frauds, in most cases.
The solution lies in having an added security layer. Reinforcing security by using password vault is one solution that can protect access keys from unauthorized users and malefactors.
ARCON is a leading enterprise risk control solutions provider, specializing in risk-predictive technologies. ARCON | User Behavior Analytics enables to monitor end-user activities in real time. ARCON | Privileged Access Management reinforces access control and mitigates data breach threats. ARCON | Secure Compliance Management is a vulnerability assessment tool.
Need a solution for safeguarding critical IT assets? Please contact us