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Cases of online fraud are continuing to rise. In 2020, about 23, 000 people reported a case of losing something valuable on the internet. The same year also represented one of the largest increases in the reported cases of online fraud.
Fraudsters on the internet managed to steal about $70 million annually in 2020. The massive figures represent a combination of businesses and individuals who lost money transacting on the internet. There is a lot more lost in Ethereum trading and other forms of investments online, especially in large crypto exchanges via sophisticated cyber hacks.
Those in their 60s and above make up the largest demographic of targeted people online, they lose a combination of about $9000 per person in annual assets.
Heists in the Crypto Domain—How Does It Happen?
Sky Mavis is the recent victim of fraud that targeted the accounts of many of its users, who lost assets totaling $615 million. The heist, which happened at the end of March 2022, cut off users from their asset accounts in Axie Infinity, which is an online game. Hackers took advantage of a fault in the bridge connection in the blockchain to loot the crypto.
Wormhole faced the same situation as Sky Mavis in February, the heist involving it became one of the largest ever reported at the time. The company lost about $320 million to hackers.
What are the cracks that Permit Crypto Hacks?
The blockchain is highly secure, at least from the information concerning it online. However, some flaws in smart contracts or the bridges that connect to the blockchain before transactions arrive are the windows allowing hackers to steal crypto assets.
Smart contracts self-execute in the blockchain. However, whenever there is a flaw, hackers take advantage by intercepting them before they execute. The hackers then manipulate them to deposit cryptocurrency elsewhere.
What Is The Best Way To Stay Safe Online As A Trader?
Traders and professionals using smart contracts are the ones at risk during a crypto heist. Fortunately, those using reputable networks can get back some or the entire amount of their money lost through a payback option by the affected exchange.
Steps such as trading like Ethereum trading and investing in a reputable cryptocurrency exchange are number one in securing digital assets. A simple Google search can tell whether a network is legit or has been involved in a crypto hacking controversy in the past.
Safe browsing is another consideration for seasoned traders to protect their assets. Malicious sites on the internet often create a gateway for hackers to exploit. Computers affected by malware also leak sensitive information such as passwords to hackers. Safety requires the trader to avoid sketchy websites.
Traders can also stay safe by using trusted trading platforms like PrimeXBT, which put asset protection as their number one priority. PrimeXBT has implanted a working customer-asset protection protocol that has strict measures to prevent the entry of any authorized people into its networks.
What Are Some Of PrimeXBTs Security Measures?
PrimeXBT has proved its platform using Cloudflare, which helps thwart DDoS attacks as they happen. The platform has deployed the function across its products, ranging from those running on Windows, the web, and Android devices.
The platform has ongoing stress tests that guarantee the security measures put in place work. Stress tests are a proactive way to halt the future movement of hackers in PrimeXBT’s systems.
Continuous checks and balances by creating mock attacks on the system, in the IT department, also look out for possible future attacks and create safeguards to prevent them.
PrimeXBT has a verification badge that scours all transactions, as they happen, to prevent manipulation. The system flags any recognized transaction below the set security standards and puts it in audit before allowing it to proceed when the system rules out the possibility of an outside attack.
Conclusion—Vigilance by Traders is the Way Forward
Cryptocurrency has disappeared in big exchanges before, meaning that assets are not entirely safe online. Unsecure networks popping up every day are the reason for the increasing breaches that have led to digital assets disappearing. However, consumers can prevent fraud by trusting reputable trading platforms and avoiding sketchy websites.