Cryptocurrencies have been the target of hackers in recent times. After Bitcoin picked up from the $2000 price level to the four-digit price level, cybercriminals have been strongly demanding bitcoin. In some cases, they hack and hold sensitive data as ransom until a huge amount of bitcoin is paid. A research has released that Bitcoin is a force that correlates with cybercrime. An insurance company in 2017 also raised that same complaint that the rise in Bitcoin price has led to the increase in cyber cases recorded in their firm. A recent research report has stated that over $1.2 billion worth of Bitcoin and Ethereum has been lost to hackers in less than a decade.
Even though Bitcoin was created to be resistant to cyber attacks, researchers at the Institute of Electrical and Electronic engineers revealed that Bitcoin can be spent twice by hackers. “We have no evidence that such attacks have already been performed on Bitcoin,” the IEEE researchers said. “However, we believe that some of the important characteristics of Bitcoin make these attacks practical and potentially highly disruptive.” The high increase in Bitcoin price also makes hackers increase the ransom amount paid.
A research report released by the Lex Sokolin, global director of fintech strategy at Autonomous Research LLP., stated that $1.2 billion has been lost to hackers. Another research released some time ago also stressed that around $11 billion worth of cryptocurrencies has been lost to governments. Cryptocurrencies cannot be played down in their roles to transform the current economy and the internet transactions but their very existence has led to the massive rise of cyber attacks. Most of the Bitcoin exchanges have employed security measures to do away with cyber attacks, but they remain a sitting duck to cyber attacks.
In 2017, a Slovenian cryptocurrencies exchange was hacked and cybercriminals managed to go away with $64 million. The website reported that “We ask for patience and understanding while we investigate the causes and find the appropriate solutions for the future of the service.” The website has therefore advised users to change their password as they might have been compromised.
As of December 2017, 180,000 bitcoin was estimated to have been hacked from various exchanges. Today, cryptocurrency traders find it unsafe to keep their coins on the various exchanges. Most of them will rather keep their funds in a private wallet on the desktops and phones than to leave them on these websites. The Bitcoin price has been predicted to rise extremely high in this year, and if this happens, it is likely that cyber attacks will be rampant. North Korea has been linkedto the series of waves of attacks launched in 2017. The country has been suspected have been raising Cyber experts to secretly use their hacking skills to get Bitcoins to finance the economy.
More Will Probably Lose In 2018
Even though these few weeks in the year has been a bad time for the cryptocurrencies, 2018 is still a year for a greater run of Bitcoin and the other competitive ones. In respect to this, the year has also been predicted to record a greater percentage of cyber cases. Lee Chen, the founder of A10 Network said to reporters that Bitcoin is the Motivation for cyber attacks. “I think the digital transformation is the underlying motivation for hackers … So expect the frequency, the size, the volume of hacks to continue to increase in 2018.”
Massive record of digital hacking can be traced to the most recent ones ranging from May 2016 to March 2017. There were 1584 digital assets related hacking cases recorded within this span. This value has increased thereafter. Currently, a Bitcoin is worth $11,000 taking a deep drop from the $19,000. This has made it worthy to possess a Bitcoin, forcing cybercriminals to demand a ransom from them. The value of Bitcoin lost to hackers in very huge, and they are working tirelessly to always come out with new techniques to defraud people of their cryptocurrencies.