In today’s world, the blockchain industry is one of the fastest-growing industries. This innovative technology has proven to be revolutionary for businesses and institutions worldwide. However, cyber-security risks are also becoming a big problem.
This article explores some of these risks, explaining what they are, who is most at risk, and how users can mitigate vulnerabilities to protect valued assets.
Cybersecurity in the Blockchain Industry
Cyber-attacks are a constant danger to security. Anyone working in the blockchain business will want to take every precaution to secure their assets, even if they already use an external wallet.
Users can further expand these risks into physical and virtual elements for organizations. Physical risks include data breaches and property theft, while virtual hazards include phishing, malware, and ransomware. Both are serious threats that can cost companies much money if they are not appropriately mitigated.
What are the Risks in the Blockchain Industry?
Cybercriminals are constantly looking for new ways to access valuable information from your Cryptocurrency wallet, and their attacks are becoming more sophisticated. Blockchain is a groundbreaking technology that will almost certainly be targeted by hackers shortly. With this in mind, here are some risks that companies should be aware of:
1. Lack of Security Awareness across the Global Workforce
There is a lack of information sharing among firms and an increased risk of employees being targeted by cyber-criminals. Many organizations now have over 8 out of 10 employees access sensitive information.
In an optimistic scenario, some organizations have even noted that more than 95% of their data has been stolen by third parties, who use traditional methods to insert malware directly into their systems. Employees should be adequately trained in data security, as this is one of their key responsibilities.
2. Hackers Can Attack the Underlying Infrastructure
Blockchain is a game-changing technology that will almost certainly be targeted by hackers shortly. However, it is still a new technology that many people are unfamiliar with. Therefore, the threat of hackers targeting these underlying systems is genuine. This means that companies should be doing everything possible to secure their platforms from potential threats and exploitations.
3. New Technologies in the Blockchain Ecosystem
The blockchain is only one element of the growing blockchain ecosystem. This ecosystem includes various emerging technologies – from distributed ledgers to innovative contract platforms. There is an increased risk that cybercriminals can target these new technologies.
4. The Lack of Cyber Security Standards in the Industry
Some argue that there are still no clear and commonly accepted standards for carrying out cybersecurity in the blockchain industry. Many companies have to develop their security measures, which is not ideal.
5. Insider Threats are a Big Problem
Finding an insider threat is difficult, as this attack would most likely never be detected. Most organizations will not know an insider is targeting them until it has already happened. This makes it imperative that they put the right processes and protocols to stop insiders from doing any real damage to their data and information.
Additionally, insiders can have a lot of access to sensitive information that they later share with outside sources. Because this information can be so valuable, companies need to employ the latest security measures to protect their data from exiting the network in any way possible.
6. Blockchain and IoT integration
The Internet of Things (IoT) allows various devices and equipment to connect to the Internet and share vital information. This also introduces new cyber-attack risks into the blockchain industry as many devices are still not adequately secured. All involved in the blockchain industry needs to be aware of these devices and take extra steps to protect them from potential threats.
7. Attackers Are Becoming More Sophisticated
With the emergence of new technologies and platforms based on blockchain, attackers are becoming more strategic in their attacks. The number of targeted attacks has increased, and in some cases, hackers even use virtual currency as a mechanism for executing their malicious plans.
8. More Companies Are Investing in Blockchain Technology
The world’s biggest tech companies, including Amazon, IBM, and Microsoft, have recently announced significant blockchain technology investments. The fact that they are investing in such a new and unproven technology should be a cause for concern, as many of these companies will be the target of hackers.
9. Lack of Regulation
One of the most significant issues confronting blockchain technology is that it is now unregulated and unregulated by any political authority. For example, suppose a hacker steals information from a firm that uses blockchain in its operations and sells it to a competitor. In that case, there is no legal framework available to help support the victim.
Every technology has a risk connected, and blockchain is no exception. There are several complex and unique hurdles facing blockchain companies, but a lot of money is still being invested. Companies need to be proactive about becoming involved in this new industry.
Discussing these risks does not scare companies from investing in this revolutionary technology. Instead, companies need to have a clear picture of the dangers they face to prepare themselves better to face these threats to achieve long-term data security.
Check out: These Cybersecurity Threats Are Costing Businesses Money, Yours Might Not Be Safe
Author: Regi Publico
Regi Publico is a full-time writer based in Manila who is also an artist for fun. She takes pride in her towering collection of books and loves reading about anything under the sun. She is passionate about sharing her knowledge through every article that she writes.