Cyber Security in Blockchain Chapter 1: The Lost of Million US Dollars

Asia Blockchain Review
October 16, 2019

A total of more than $ 1.7 billion in cryptocurrencies have been stolen over the years, most of which came from exchanges and gathered in Asia, according to The Wall Street Journal. 

Exchanges hacked in the first six months of 2019. Source: Cointelegraph.

Security vulnerabilities

Since it was first known in 2008 through the advent of Bitcoin, blockchain has created a revolution, helping to satisfy simultaneously three factors that no technology has ever met is immutability, decentralization and transparency.

That’s the theory, but in reality, the blockchain is not a “100% bulletproof vest” if in the process of deploying and controlling programming code there are network security holes. The list of blockchain network security attacks is currently witnessing an increase in both the quantity and value of lost assets.

Throughout the past six months of 2019, seven crypto exchanges have reportedly seen large-scale hacking attacks to the tune of tens of millions of dollars. Big and typical is the attack on the Coincheck exchange – one of the famous cryptocurrency exchanges based in Japan. Investors and exchange users had been stolen 500 million NEM tokens, equivalent to $530 million of crypto worth. More seriously, the Mt.Gox exchange collapsed after the attack costing US $460 million.

According to The Wall Street Journal, more than $1.7 billion in cryptocurrencies have been stolen over the years, most of which come from exchanges and are concentrated in Asia.

Also, DApps market (decentralized-application) is not outside this security problems. As the report from Blockchain Truth, some of DApps which were developed on EOS blockchain have been lost up to $1 million to hacks since July till Dec 2018.

“For blockchain, more and more security holes are discovered in the field of cryptocurrency and smart contracts. In it, some of the vulnerabilities stem from the very way they were created.” (MIT Technology Review – February, 2019).

Solution for blockchain cybersecurity?

Analyzing the causes of digital attacks, the McAfee Blockchain Thread Report in June 2018 shows that they often take the following forms:

  • Phishing
  • Malware. Examples are: ransomware, miners and cryptojacking
  • Security hole
  • Technology

Among them, cryptocurrency exchanges are often vulnerable to attacks belonging to reasons number 3 and 4. On the one hand, exchanges are intermediaries between cryptocurrency buyers and sellers, on the other hand, they still use centralized server technology to store user information and transactions.

In addition, blockchain businesses tend to prioritize resources to develop technology infrastructure, business, human resources, etc., and cybersecurity problems are often left open. As a result, blockchain consumers are easy to become a target for attacks. Therefore, hackers always have a way to isolate, invade and manipulate information of exchanges to use for malicious purposes.

The incident shows the importance of regularly assessing security, identifying the weaknesses of the IT system. And best of all, cybersecurity is required, even in the blockchain businesses.

So, what is cyber security? Cybersecurity is a practical activity to protect systems, networks, programs and decentralized applications from digital attacks. These cyber attacks often aim to access, change or destroy information; blackmail users; or disrupting the business process.

On the business side, customer data may be stolen, the company’s confidential business data may be leaked and the company’s operations may be disrupted. The consequences can damage the reputation and relationships that businesses have taken years to build.

“When it comes to security in new technologies like blockchain, the lack of skilled resources is a big challenge. To protect your enterprise when applying frontier tech, you need the right team who understand not only the technology itself but, more importantly, also the security risks that come with it. IBL Cybersecurity team with proven expertise and competence has been a trusted partner of blockchain and cryptocurrency businesses in Asia might be that right team for your business.” Mr. Tuan Nguyen, Head of Security – Infinity Blockchain Labs (IBL) identify.

The challenge of effectively applying cybersecurity is vital for blockchain businesses as attackers are becoming more and more sophisticated. Therefore, the need for third-party network security services not only strengthens the existing security system, but also helps businesses confidently face any security threats might be merged in the present or future.Understanding the importance of cybersecurity, Infinity Blockchain Labs (IBL) has built a team dedicated to optimal network security services for blockchain industry.

 

With practical experience accumulated through many Asian & European cybersecurity projects, IBL’s Cybersecurity team is a trusted partner of blockchain and cryptocurrency businesses in key cyber security categories such as:

1. Security Consulting service

  • Cybersecurity Framework, Strategy & Programme transformation 
  • Security policies and standards that align with ISO 27001 and other standards 
  • Enterprise cybersecurity architecture design and definition

2. Penetration Test and Security Audit

  • Smart contract Audit
  • Blockchain Applications (Web & Mobile) 
  • Infrastructure (Network & System)

3. Security Operation Center (SOC)

  • Monitoring (24/7)
  • Incident investigation 
  • Threat & vulnerability management

Our advantages:

  • Leverage the hands-on experience in 10+large blockchain projects in various industries. 
  • Have strong team with profound experience & blockchain-specialized certificates by world-wide security organizations: OSCP, OWASP, CVE…
  • Have strong capability to consult the best practices for: Exchange,  Wallet, Blockchain platform and other blockchain applications.  
  • We are a part of the Infinity Blockchain Group that represents the world from Asia: 300+ experts, presents in 9 countries in Asia, strong network of partners and 4+ years blockchain experience. 

For advisory on blockchain network security services, please contact: [email protected] 

Source:


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