Cryptocurrency has grown rapidly in recent years. Blockchain games and NFTs make this digital money even more accessible for mainstream, ordinary people. You don’t have to be a crypto or blockchain enthusiast to notice that.

Now that more and more people are jumping into the crypto bandwagon, cybercriminals out there just won’t standstill. Even though cryptocurrencies are built on blockchain systems (which are considered secure as it is decentralized and distributed), they are not immune to security attacks. There are still some cybersecurity risks to be aware of– from ransomware to email scams.

So, what does it mean in terms of your business?  Let’s find out!

Why can cryptocurrency be such a safe haven for hackers out there?

When it comes to cryptocurrencies, they are perfect targets for hackers. The reason why they’re so popular is simple: they’re decentralized and anonymous. That’s why cybersecurity experts warn that these blockchain-based coins are not new to hacks.

Also, many people are getting into the crypto world without proper cybersecurity knowledge, so they become easy targets for hackers.

Why should you care about your cybersecurity?

Cybersecurity is an issue that affects all kinds of businesses out there. But it’s especially important for those that deal with financial assets and ensure secure file transfer. Whether it’s your employees who are handling employee records or customers who transact through you, you want to make sure they’re safe.

If your cybersecurity is lacking, hackers can break into your system and steal customer data, steal employee data, or even cause financial losses. And, if hackers gain access to your system, they can cause damage to both your assets and the data stored in your system.

This is why you should make sure you’re protecting your systems from cybersecurity risks.

5 most common cybersecurity risks

Like any other financial system, blockchain-based digital money is prone to cybersecurity risks. These risks include hacking, digital asset theft, money laundering, and fraud. After all, digital assets are stored in servers.

Let's break down each of some common cybersecurity risks in cryptocurrency:

1. Phishing attacks

Phishing attacks are a common cybersecurity risk of cryptocurrency. Hackers send fake emails that look like they’re from a legitimate source. Also take care of the follow up emails. They try to trick their victims into clicking on malicious links or downloading malicious files. Then, they will get access to your system and steal your data or digital assets.

2. Malware

Malware is another common cybersecurity risk in cryptocurrency. Malware is malicious software that can be used to steal data and information.

Like other malware, ransomware can encrypt files on a computer or server and demand money for the decryption key. To protect yourself from ransomware, you should regularly back up your files and store them offline so you won’t lose them if malware attacks your system.

3. Remote access attacks

In this type of attack, hackers gain unauthorized access to a system through remote access programs (RATs). RATs allow attackers to take control of the target computer remotely over the Internet or other networks without requiring physical access to the system.

4. User perplexity

This happens when the user has trouble understanding or using the cryptocurrency protocol. It can result in loss of funds or damage to the system.

5. Unverified software

Users should verify any third-party software they intend to download and use with their cryptocurrency assets. Otherwise, they could expose their assets to security risks or even lose them altogether.

How can you avoid crypto scams?

Cybercriminals love to use cryptocurrencies for their scams. After all, it’s easy to send and receive cryptocurrencies. And once your company is online, it’s easy for scammers to make you their target. So, how can you protect your business from cyberattacks? Here are some tips:

Use a secure wallet

You’ve heard about hacks and scams in cryptocurrency, right? So, if you want to stay safe from hackers and scammers out there, use a secure wallet. It’s important to note that there is no such thing as 100% safe wallets. But with the right precautions and knowledge of how the market works, you can minimize the risk of losing your coins to hackers out there.

Read up on cybersecurity measures and make sure that you have an extra layer of protection when using your wallet. If you don’t know what to look for in wallets (and other crypto-related services), reach out to experts in this field. They will be able to help you set up a secure crypto wallet for your business.

The blockchain still relatively new, and the security measures used by these services are not yet top-notch. The more people use these blockchain-based services, the more hackers will try to find ways to exploit them.

If you want to avoid getting hacked, you should always keep your eyes open for any suspicious activity on your account.  It’s also a good idea to check your cryptocurrency wallets on a regular basis.

Use two-factor authentication

With many businesses already accepting cryptocurrencies as payment, hackers are targeting these crypto clients. And they’re not just after financial gain – they want access to your business emails and other sensitive data as well.

You can protect your crypto exchanges from cyberattacks by using two-factor authentication or 2FA (also known as 2SV). 2FA requires a second login code in order to access your account or make payments on it – this code is sent via text message or generated by an app on your mobile device. This extra layer of security is essential in protecting your business and your clients.

Train your employees

It’s also important to train your employees so they know how to avoid phishing scams. Phishing is the most common type of scamming attack, and it’s easy to do. Ensuring your team is educated on this is a crucial education stake in protecting your organization.

You can spot a phishing email if you look closely at the email address – it should be from a company that you deal with, not an unknown source.  But it’s not always easy to tell whether an email is real or fake, especially because cybercriminals are getting better at disguising their emails as legitimate business correspondence.

So make sure your staff knows what to look out for when reading emails.

Consider the risks before accepting crypto payments

Before accepting cryptocurrency as payment, you should do some research to determine the risks involved. First, you should find out whether your country or state allows the use of cryptocurrencies. If it doesn’t, you’ll have to find an alternative payment method for your business.

You should also consider how long it will take for you to receive your funds after making a sale – some cryptocurrencies are much faster than others, which is something to keep in mind when dealing with international payments. You can do all of this research by reading up on crypto news and forums or by talking to experts in this field.

It’s also a good idea to talk with other businesses that already accept cryptocurrency as payment – they will be able to give you valuable insights about their own experiences in dealing with these currencies.

Wrapping Up

Cybersecurity practices are crucial not only for saving money and time, but also for maintaining your business reputation. Now that cryptocurrency has become a lot more mainstream than it was ever before, it’s better to start taking action to make your business and your clients' digital assets unreachable to those cybercriminals.