Since the advent of the internet, the online security of the users has been a major concern, no matter how sophisticated the countermeasures to thwart hack attempts, data breaches, and scams become, and the same goes for the crypto industry. Even though crypto has blockchain as its underlying technology, which guarantees enhanced security, there have been breach incidents in the past, especially when it comes to investment scams.
In recent years, millions of dollars are lost to scams related to crypto exchanges and trading. That being said, market study shows that the security breaches have more to do with the lack of education on the part of the user rather than a loophole within the crypto or blockchain infrastructure. So, can crypto education prevent users from falling prey to phishing and phone scams?
The Concern of Crypto-Phishing Scams
Over time, the world has warmed up to crypto, accepting it for mainstream use and the industry has prospered in leaps and bounds. Nevertheless, the question concerning the security of crypto still persists, especially with the news of a scam making headlines where hackers used a phishing email to lead the users to a fake Ledger platform, causing a scam of around 1150000 XRP, worth $290K.
While reacting to the incident experts suggested that the ledgers should have a more advanced and defensive domain acquisition strategy, since in this case, the hackers used look-alike domains to trick the users. While investigating the scam, it was revealed by the Ledger team that it had suffered a data breach leading to the compromising of about a million email addresses and personal data of more than 9,500 customers. This is not the first scam though as in 2018 hackers devised a duplicate of the Binance website, which after it came to light was taken down. Multiple instances of likewise scams have taken place over the years, which has raised concerns of both the users and the industry insiders.
Responsibility of the Users
While it is important that platform creators and digital asset wallet operators need to up their security game to counter the hack and breach attempts, to ensure the absolute security of users’ assets. Nevertheless, phishing attacks quite common not just in the crypto industry but in other sectors especially the payment and financial services industry.
Experts working in this area, have stated that the responsibility falls on the consumer or the user as well because in many cases phishing scammers are known to take advantage of their ignorance and lack of knowledge about security.
They further implore on the importance of crypto owners being careful and double-check each shred of information that they receive regarding their digital assets and how to maintain and use a wallet. It is a shared responsibility between the users and the service providers, which means that the wallet operators and the crypto owners need to work in sync with each other to ensure the optimal security and safety of the assets from external threats.
The experts have encouraged the users to take necessary precautions to safeguard their assets and take complete responsibility for their actions by practicing what is steeped in individual data safety, such as two-factor authentication, refrain from clicking on suspicious ledger links, etc.
Importance of Cryptocurrency Education
Despite being a revolutionary technology in both its design and potential, a significant number of users still find the concept alien. That needs to change immediately, as this is the exact weakness that the scammer target. Since the technology, empowers the individual monetary self-sovereignty that comes with the responsibility of personal awareness regarding financial security. Hence, it falls upon the enterprises within the crypto and blockchain space to take necessary steps to educate the users about the security protocols and repercussions of their lack.
Experts stress that, instead of exaggerating the enhanced security features of blockchain, companies should pay more attention to educating the end users, as no technology comes without loopholes. The users are only secured if they are cautious enough and know how to use advanced technology for their benefit.
According to a market study, around 85% to 90% of digital assets owners fall prey to common types of theft schemes, such as, fake investment scams, phishing traps, which has nothing to do with blockchain’s promise of security. It can be easily avoided if the users are well educated regarding crypto. It is best if the major wallet operators inform the users about what to look for in case of phishing attempts, especially since these scams invoke the wallet provider’s identity.