The growth of cryptocurrency has continued despite the challenges the economy has been facing during the year. However, this welcome development in the industry has also opened the eyes of more cybercriminals.
Security Challenges and Problems
Research from Crypto.com showed global cryptocurrency adoption growing to 221 million by June 2021. That is almost double the number recorded in January 2021.
These attacks show weaknesses when it comes to the security of cryptocurrency investment accounts.
Generally, an interested individual sets up an account. They use passwords or another knowledge-based authentication (KBA). While these seem enough, that is far from the truth. Both authentication methods are unfit to protect high-value accounts.
Passwords can be compromised. One of the most common techniques cybercriminals use is phishing. It is when the account owner is tricked to provide personal information that the criminals can use to access the account.
Other possible problems a user can encounter when using KBA include forgetting key information, availability of personal information on social media, and data leaks. Another way is for the criminals to buy credential pairs and personal data from the dark web.
Better Security with Multifactor Authentication
For better security, some use two-factor authentication. For example, you can have a one-time passcode sent to you through SMS. However, cybercriminals have also seen through this method. Some attackers use SIM swapping or SMS relay service to get access to the code being sent to the user.
So, instead of using KBA, it is better to have possession-based authentication. That is when login credentials are stored on the physical device the account owner uses to log in. A good example of this is a smartphone.
Many crypto exchanges are already using possession-based authentication. To ensure protection, they even adopted FIDO authentication standards.
That said, standardization of authentication protocols is only one of the things that can help solve security issues in the cryptocurrency industry. Consistency is of great importance. Additionally, having multifactor authentication will also help a lot.
The Nok Nok Guarantee
At the forefront of passwordless authentication is Nok Nok Products. Nok Nok is one of the FIDO co-founders. It offers solutions, such as multifactor authentication, to help secure digital payments and transactions.
Contact Nok Nok to learn more about the best cyber security solutions.