Given the recent Ledger event and the increasing Bitcoin price, we believe it is essential to understand data privacy, online safety and how best you can protect your digital assets.
Data Privacy and Security
Data privacy is paramount and has recently become a human right. This is seen not only by average internet users’ social demands, but by increasing regulations that aim to protect users’ privacy. Many internet users are unaware, but their history, physical location, online trends, social media activities, and much more are used to create an online map of your identity.
Now that we have explained why data privacy is important, we have to discuss information security. Once companies collect these large numbers of data, these data must be stored. This is one of the reasons why many opponents of KYC/AML regulations require entities to keep enormous piles of personal identification data to create large honeypots for attackers.
This leads to the recent Ledger incident, where a data violation turned into a large public data dump. This has led to more than 1 million email addresses and more than 271,000 PIIs leaked into a public hacker forum for anybody to download free. This Information Personally Identifiable (PII) includes names, addresses, telephone numbers and other sensitive information. This is probably the worst thing a crypto investor can do; the only thing missing is their total crypto amount.
Crypto Wallet Security & Institutional Control
Institutional Control is one of the most important puzzles of a mainstream asset class regarding Crypto Wallet Security. Although the crypto community is proud to hold its assets, this brings inherently compromises.
The PROS of “hold your own keys” enables you to bring your money anywhere and use it as you like. This is a great advantage but requires not only technical knowledge but also practical knowledge.
The key is that it lets you open to malicious actors trying to carry out different kinds of attacks against you.
Phishing Attacks: This is where an attacker sends a communication that leads a user to believe it is an authority figure (email, text message, telephone calls etc.). Many recent phishing attacks have been carried out against the victims of the Ledger breach. It even saw XRP owners lose more than $1.1 million. By studying these types of attacks and ensuring that you interact only with verified sources, you can prevent phishing attacks.
Physical Attacks: this may be the scariest and hard to protect the type of attack. If an attacker knows you have Crypto Wallet Security and you know your physical position, they can use physical strength to get you to hand in your Crypto Wallet Security assets. You can protect yourself against biological attacks by using not only techniques of privacy but institutional Control. That is why you see that the rich are not attacked because they don’t hold their wealth within their homes but because they are custodians at the institutional level.
Check out: What You Must Know About the Bitcoin Wallet: