As the frequency of cyberattacks and breaches continues to plague companies, cybersecurity experts have shared their insights on enhancing crypto security for digital asset firms and the broader cryptocurrency industry.
Before September 2023, the crypto space had already suffered nearly $1 billion in losses due to hacks, exploits, and scams.
Unfortunately, the fourth quarter of 2023 witnessed more unsettling incidents, such as the Poloniex exploit, resulting in digital asset losses exceeding $100 million, and the HECO Chain bridge hack, which led to losses exceeding $80 million.
Given the rising number of security incidents and the substantial losses incurred with each breach, it is evident that digital asset security in the crypto industry needs significant improvement.
Consequently, Cointelegraph sought the opinions of cybersecurity professionals on measures to prevent further incidents and bolster crypto security.
Ronghui Gu, the co-founder of blockchain security firm CertiK, expressed strong disapproval of the ongoing incidents caused by SIM-swap attacks and multisig failures, especially after previous incidents had brought attention to these security vulnerabilities.
Gu emphasized the importance of embracing crypto-native multifactor authentication and conducting regular security audits.
He stated, “We’re building highly functional, highly complicated technology, and it’s important to prioritize security, even in the face of incentives to prioritize speed over security.”
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Christian Seifert, a researcher in residence at Forta Network and former security lead at Microsoft, concurred that security should be paramount.
He stressed the need for users to demand enhanced security measures and suggested that regulators should intervene if necessary to compel crypto projects to adopt more comprehensive security strategies.
Seifert argued that security audits alone are insufficient and called for a comprehensive security strategy encompassing secure design, monitoring, and threat prevention solutions.
Jerry Peng, a research analyst at Web3 analytics firm 0xScope, emphasized the necessity of gaining a deeper understanding of the origins and potential emergence of security threats.
This understanding would enable companies and individuals to detect patterns and connections exhibited by addresses involved in previous attacks.
Peng highlighted the role of crypto data analytics services in assisting investigators in preventing potential future hacks.
Ronghui Gu revealed that, according to CertiK’s data, hacks in 2023 alone had already inflicted losses of $1.5 billion as of November 28.
He pointed out that these ongoing security breaches significantly impact crypto adoption by eroding public trust in the security and stability of digital assets.
Christian Seifert echoed similar sentiments, noting that early crypto adopters were willing to accept certain risks, but such tolerance will not be acceptable to the broader user base that the crypto industry aims to attract.
Seifert drew a parallel, stating, “Imagine losing all your savings because the branch of your bank was broken into overnight. You wouldn’t bank there.”
Jerry Peng also believed that hacks hinder potential market growth by discouraging individuals who were previously open to exploring the Web3 space.
In essence, these security incidents hinder the progress and adoption of the crypto industry by eroding trust and confidence in its security measures.
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