One of the most common fears that many users of Bitcoin and other cryptocurrencies face is the risk of losses. It is even more dreadful when the losses arise not from market volatility but as a result of theft of digital currency from breaches in security and/or accounts getting hacked.
The most infamous case of security break dates back to 2014 when Bitcoin exchange Mt. Gox, responsible for the majority of Bitcoin trading at the time, collapsed following a breach on its platform which resulted in a significant amount of digital currency being stolen.
While the oversight and security measures have increased over time, the cases of lapses in security of Bitcoin exchanges have continued to weaken the faith of cryptocurrency users.
The public wireless network lapse
Recently, a 36-year old individual in Vienna, Austria lost US$117k worth of Bitcoins while he logged-in to his Bitcoin account on a public wireless network at a restaurant.
The victim had logged on to the unsecured wireless network to check the value of his Bitcoin holdings, when he realized that US$117k worth of Bitcoins had been stolen. However, it is yet to be verified if the account was already hacked before he logged on to the public network.
The list goes on…
In mid-2017, one of the biggest exchanges in South Korea, Bithumb, saw a breach on its platform where hackers stole cryptocurrencies worth US$1 million at the time.
In another case, an Israeli cryptocurrency trading platform CoinDash saw US$7 million worth of Ethereum being stolen in the middle of its ICO.
Another recent case is that of Confido’s ICO where founders raised US$500k, before vanishing into thin air leaving no traces behind whatsoever.
The danger lingers on
The security breach of accounts is one of the key risks faced by operating in cryptocurrencies market. While the threats of hacking and security breaches aren’t confined to cryptocurrencies, yet the growing number of breaches in the cryptocurrency space poses a big hindrance to the future acceptability of Bitcoins.