(TECH NEWS) There is no such thing as un-hackable, even in cryptocurrency. Yes, it can be hacked, BUT it can also be prevented.
WHAT IF CRYPTOCURRENCY… WASN’T?
Sounds like a terribly clever Black Mirror episode, I realize, but it’s a serious question that’s come up more and more in conversations about cryptocurrency: is it really safe? Security has always been the core offer of bitcoin, Ethereum and their digital kindred. It’s right there in the name. Cryptocurrency equals currency, encrypted. It’s supposed to be so good it can be bad, as in, the security is so tight bad people can do bad things and nobody knows about it.
But despite the rep for felon-worthy security, the plain fact is that blockchain isn’t invincible. When it comes to secure exchange of funds, blockchain-based cryptocurrency is still probably your best bet, but as with all things “best” does not equal “perfect.” Blockchain’s advantages over conventional cash are clear: there’s no hard currency to steal or lose, no middleman to get up to nefarious doings, and the records are cozy behind the apex of information security. That’s great, but it’s not everything.
HOW TO KEEP THE CRYPT PART OF CRYPTOCURRENCY
That being the case, in my self-appointed role as AG Crypto Guy (Pulitzers, call me) here follow several ways nefarious folks can eff with your fat digital stacks, and what you can do about them.
It’s a classic. Early on, cryptocurrency was spared the plague of Russian threats and Nigerian princes for the same reason as Linux: not enough there to steal. After Mt. Gox and other frankly spectacular bits of fraud (the word “trillion” occurs in the Mt. Gox story, and it’s not hyperbole) that is, to say the least, no longer the case. Bad folks are writing programs based on the same tricks they’d use to swipe normal cash – Trojans that skulk in the guts of your programs, scooping up secure data, phishing attempts to get you to hand that data over voluntarily – aimed at your digital dollars.
Solution: Operational security. Sounds fancy when I put it like that, but for our purposes “operational security” just means “stuff that you do” as distinct from “stuff your computer does.” If you keep a substantial portion of your value in cryptocurrency, protect it as tightly as you would anything else worth having. Have strong, single-use passwords for each service you use your coins of choice with. Keep offline backups of your cryptographic credentials. Use a good VPN. Think of it as the equivalent of keeping your bank password out of your Smart Lock list, and not putting your PIN on a Post-It.