Companies creating in the Web3 and crypto landscape must handle their cybersecurity. There’s a lot more at stake than there is in regular companies. Web3 websites often allow you to connect your crypto wallet and hold your digital assets.
Because there’s a lot of value going around, it’s essential to protect your customers in all possible ways. There are a lot of cyber threats on websites, but thankfully, there are also many ways in which you can protect against them.
This article delves into some of the most common types of cyber attacks and explains how website owners can improve their security measures.
What are digital assets?
Digital assets can be anything created and stored digitally but also identifiable and discoverable. They often provide or have some value and can be transferred electronically. There’s a lot of speculation on the actual value of some digital assets, such as NFTs.
However, other digital assets, such as cryptocurrencies, are widely accepted as valuable, and their worth can be directly measured against currency such as a Dollar or a Euro. For online businesses, cryptocurrencies are the most important type of digital asset to understand.
Cryptocurrencies can be used to purchase digital and physical items and are stored in software or hardware wallets. Blockchain, the digital ledger’s foundation of cryptocurrencies, has numerous built-in security features. However, blockchain can’t protect users or websites from certain cybersecurity risks.
Overall, digital assets can be kept in a software wallet, allowing customers to purchase something from an online store or individual easily. A website's potential vulnerabilities can cause financial losses for both parties and reputational damage to the website owners.
Common types of attacks on digital assets
Before you start implementing the security measures on your website, you must understand the types of attacks you’ll face.
The sophistication of these types of attacks varies. Furthermore, a social engineering attack or a phishing attack can be done so well that even tech-savvy individuals won’t recognize it.
Phishing
Unfortunately, phishing attacks are a common cybersecurity problem in the crypto world. They are executed by creating a fake website that resembles the original. The user then enters their credentials or uses a crypto wallet and is tricked into losing their account or funds.
Business owners should always leave a note somewhere on their website for their visitors to be cautious of phishing attacks. Phishing websites are usually sent from fake accounts on social media or your email.
For example, I’ve received phishing emails from throwaway accounts telling me I sold a digital asset on an NFT marketplace. I know I haven’t listed anything, but even if I did, I’d recognize that the email is fake because of its poor design.
Furthermore, companies rarely use the “@gmail.com” domain to contact their employees. Instead, if a Cube Creative Design employee, for example, contacts you, they’ll use a “@cubecreative.design” email.
Malware and keyloggers
Malware and keyloggers are some of the most dangerous types of cyber attacks. Malware stands for malicious software. This malicious code can steal sensitive information, including financial data, passwords, and crypto wallets.
A keylogger, or keystroke logger, is a specific type of spyware that records every keystroke a user makes on their device. Both of these types of software can lead to significant problems for your business. Defending against them is conducted via several measures, such as antivirus software and common sense.
Some of the measures we will talk about below significantly reduce the risk of malware attacks and the potential damage they can cause.
For online collaboration use organizational tools set by the company policies to avoid data leaks.
Attacks on exchanges
While attacks on exchanges aren’t directly tied to one’s business, they need to be recognized and addressed by the people in the crypto community. For example, if an extensive exchange was a target of a successful hacking campaign, it could mean that people who use that platform to pay for something on your website are using stolen accounts.
During times when the exchange is under attack, it’s important to disable transactions that are facilitated by it between your business and customers.
Social engineering
Another widespread cyber attack in the crypto world is social engineering. This method leverages human psychology to get access to sensitive information that can be used for the gain of the hacker. For example, a fraudster can send the user a fake document that says they must pay them in crypto, or they will get sued.
In many situations, hackers pose as colleagues or trusted figures in order to provide a sense of authority. As a business, it’s important to address this occurrence and explain in which situations your employees might contact customers and what accounts they’re using.
Dusting attack
While the previous attacks can be carried out in basically all industries, dusting attacks are unique to cryptocurrencies. A dusting attack sends a small number of tokens to a user’s wallet to trace their transactions.
It can also be used to financially harm an individual. For example, a user receives a small amount of money in their crypto wallet and decides to convert them. Depending on the smart contract of this fake token, the user can provide the hacker with access to their wallet or pay a significant amount in transaction fees.
Website security measures for safeguarding digital assets
There are several robust security measures you can implement to protect your websites. Furthermore, several security tools can significantly improve your defenses.
However, before you start subscribing to advanced security services, it’s essential to cover the basics and minimize the chances of most common attacks from occurring.
SSL/TLS encryption
One of the most critical security practices is the implementation of SSL/TLS protocol. Without it, you’ll be penalized by search engines, and users won’t trust you.
SSL/TLS protocol encrypts data that are transmitted between a user and the client. For example, previously mentioned phishing websites don’t have this protocol so that the hackers can see the transmitted data. Because of this protocol, even if the hacker observes some data, they can’t read it.
Multi-Factor authentication policies
One of the most vulnerable processes for an employee or a customer is logging in. If a hacker gets a user’s password using a phishing website or a keylogger, they can say goodbye to their account.
However, with multi-factor authentication, the hacker will also need to have access to their phone or email. This is, of course, when the customer uses an expirable code to log in. Another level of security can be implemented through biometric authentication.
Multi-factor authentication is critical to protect your employees as much as your customers. If an employee’s account is compromised, then the hacker can use it to facilitate other, more harmful, cyber attacks. We’ve talked about how hackers will contact you from unverified emails.
We’ll imagine if your colleague sends you a phishing link. There’s a high probability that you won’t even consider that it might be a scam.
Secure coding practices
There isn’t a lot that additional security practices can do if your website or application is developed without security principles. Secure coding practices ensure that the application is protected against certain types of cyber attacks, even without implementing additional security measures.
Security coding practices can include regular code reviews, implementing input validation, and avoiding the use of unsafe functions. These principles can protect you against specific malware attacks, as well as attacks like SQL injection, cross-site scripting (XSS), and buffer overflow.
Session management and expiration
Session management is an essential component in reducing the risk of unauthorized access. It ensures that users’ sessions are automatically ended after a period of inactivity.
Proper session expiration settings protect against session hijacking, a technique where attackers gain control of a user’s active session. Furthermore, it can protect the user and company in case their device is stolen or hacked.
Website security is crucial in protecting digital assets
Implementing all the necessary security features can be costly and time-consuming. However, the security risks can cause more harm and problems if you don’t address them. The bottom line is that you should implement the best possible security measures, even if they are expensive, as the alternative is much worse.
Hackers exploiting critical vulnerabilities can lead to significant problems, such as the theft of digital assets, data leakage, and even identity theft. If your website isn’t using the necessary security measures, hackers can leverage it for fraudulent activities. Tracking relevant KPIs can help assess the effectiveness of your website's security measures, ensuring you stay ahead of potential threats.
As a manager or owner of an online company, offering the possibility of crypto payment is innovative. It can benefit your sales, but you shouldn’t make this step without precaution.
